As tax season rolls around, it’s the perfect time to start preparing, especially if you’re looking to save money while filing your taxes. TurboTax, one of the most popular tax preparation tools, has released several fantastic discounts for January 2025. From exclusive early-season offers to unique benefits for PayPal users, there’s something for everyone.
Here’s an overview of the best TurboTax discounts and how you can take advantage of them, including how PayPal users can score extra savings.
Extra 10% Off TurboTax Federal Online Products (Up to 50% Total Savings!)
One of TurboTax’s standout promotions this month is an additional 10% off offer their federal online products. Combined with their early-season discounts, this deal allows you to save up to 50% off across all TurboTax service tiers. Here’s a closer look at the options:
- Do-It-Yourself (DIY):
This is a great choice if you’re confident filing your taxes independently. TurboTax’s guided software makes the process straightforward, even for those new to tax preparation. - Live Assisted Versions:
Prefer a little extra help? With Live Assisted, you get on-demand access to tax professionals who can answer your questions and guide you. - Full-Service Options:
If the idea of handling taxes stresses you out, Full Service allows TurboTax experts to take care of everything for you, from preparation to filing.
This discount is available through January 31, 2025, so it’s worth acting soon to maximize savings. Whether you’re self-employed, own a small business, or just need help filing a straightforward return, this offer ensures there’s an option for every type of taxpayer.
50% Off QuickBooks Solopreneur Plan (with Live Assisted Tax Filing)
If you’re a freelancer or small business owner, combining TurboTax with QuickBooks could be a game-changer. TurboTax is offering a 50% discount on the QuickBooks Solopreneur plan for new customers, bringing the price down from $20 per month to $10 per month for the first three months. This plan is tailored specifically for self-employed individuals who need to file a Schedule C (Form 1040).
Key features of this offer include:
- Live Assisted Tax Experts: Unlimited access to tax professionals to help you identify deductions and ensure accuracy.
- QuickBooks Integration: TurboTax professionals can pull data directly from your QuickBooks account, saving you time and reducing errors.
- Industry-Specific Tax Advice: Receive customized recommendations for credits and deductions specific to your line of work.
- 100% Accuracy Guarantee: TurboTax backs its service with an expert-reviewed guarantee.
- Audit Support: Gain peace of mind with on-demand guidance if you ever face an audit.
This offer simplifies tax filing while managing your business finances in one place. However, note that it’s only available to new QuickBooks users.
TurboTax Free Edition: A No-Cost Option for Simple Returns
If your tax situation is relatively uncomplicated, TurboTax’s Free Edition may be all you need. With this option, you can file both federal and state taxes for free. A “simple return” typically includes:
- Filing a basic Form 1040.
- Claiming limited credits, such as the Earned Income Tax Credit, Child Tax Credit, or Student Loan Interest Deduction.
- No complex forms or additional schedules.
Keep in mind that not everyone qualifies for the Free Edition. For example, business owners, those with investment income, or anyone with a more complex tax situation will need to upgrade to a paid plan.
Special TurboTax Discounts Through PayPal
Do you have a PayPal account? If so, you can unlock even more savings on TurboTax products. PayPal often partners with TurboTax to offer exclusive discounts, such as $20 off TurboTax Online products. Here’s how you can access these deals:
- Log in to your PayPal account.
- Click “Deals” in the top navigation bar.
- Select “Office Products” under the categories section.
- Look for the TurboTax logo to view the discount details.
PayPal also provides shopping deals across various categories, so it’s worth browsing to see if other savings catch your eye.
What If the PayPal Discount Isn’t Available?
While PayPal frequently offers TurboTax discounts, availability can vary depending on their marketing campaigns. If you don’t see the TurboTax offer in your PayPal dashboard, you can still use TurboTax’s standard discounts, including the 10% extra savings on federal products mentioned earlier.
Understanding PayPal’s Tax Reporting Rules and Form 1099-K
If you regularly use PayPal for transactions, it’s crucial to understand its tax reporting obligations. For the 2024 tax year, PayPal will issue Form 1099-K if you receive payments exceeding $5,000 for goods or services. Here’s what you need to know about Form 1099-K:
- What It Reports:
Form 1099-K shows the total payment amount you received during the year, not adjusted for fees, refunds, or expenses. - When You’ll Get It:
PayPal sends 1099-K forms by January 31 for the previous tax year if you meet the payment threshold. - What to Report:
While the form lists gross payments, you’re only taxed on your profits, not the total revenue. Ensure you deduct business expenses, shipping costs, and other eligible amounts when calculating your taxable income. - Correcting Errors:
If PayPal sends an incorrect 1099-K, request a corrected version. However, don’t delay filing your tax return if you don’t receive the corrected form in time—just ensure you have documentation to support your reported numbers.
Changes to 1099-K Thresholds in 2025
The IRS is phasing in new thresholds for 1099-K reporting. Here’s a quick breakdown:
- For 2024, PayPal will issue 1099-K forms for payments exceeding $5,000.
- In 2025, the threshold will drop to $2,500.
- By 2026, the threshold will be $600, regardless of the number of transactions.
These changes mean more individuals will receive 1099-K forms, even for occasional sales. If you sell items through platforms like eBay, Etsy, or Venmo, keep records of your transactions to ensure accurate reporting.
Maximizing Savings While Filing Taxes
Filing taxes doesn’t have to be expensive or stressful, especially with TurboTax’s January 2025 promotions. Whether you’re looking for a robust DIY solution, need expert guidance, or prefer a full-service experience, TurboTax has discounts to suit your needs. Pairing these offers with PayPal’s occasional deals makes tax season even more affordable.
Start exploring your options early and take advantage of these promotions to save time, money, and hassle. Happy filing!