TurboTax 2009 Discounts For Early Birds
Ready to do your taxes already? Wow, not me. My usual advice for cheap tax software is to check the Sunday newspaper ads. Every year, the office supply stores will eventually sell them for essentially free after rebate. But if you’re not into rebates or just can’t wait, here are some current discounts for TurboTax. It does seem like TurboTax has been shifting their profit margins onto their state software. For reference, TurboTax Deluxe Online for Federal is $29.95 retail with free eFile, but TurboTax Online State retails for $36.95 with eFile. Total: $66.90.
Free TurboTax Federal for 1040EZ (Simple Returns)
If you have a simple return with no itemized deductions, and don’t have any state income tax, then you can get the TurboTax Free edition with free eFile.
Free TurboTax Federal w/ Income Restrictions and Military
If you meet the income and/or military status requirements, the TurboTax Freedom Edition is free for Federal including eFile. Covers all the forms, not just 1040EZ. State filing may also be free for those in AL, AR, AZ, GA, IA, ID, KY, MI, MN, MO, MS, NY, NC, ND, OK, OR, RI, SC, VT, WV. Otherwise it is $14.95.
Free TurboTax Deluxe with State Farm Bank
If you have a bank or credit card with State Farm, you get free TurboTax Deluxe (log-in required). I can’t tell if this includes State? In any case, not a bad perk.
25% off through Vanguard, Fidelity, or everyone via State Farm
Vanguard (log-in required), Fidelity (log-in required), several other financial institutions, and State Farm site visitors all can save 25% off TurboTax online for both federal and state. Anyone can be a “site visitor”. This results in final prices of $22.45 Federal and $27.70 State. Total: $50.15
If you’ve got Flagship status at Vanguard (usually $1M in assets), then you get TurboTax Federal and State online for free. One day!
35% off Federal only via Bank of America
Bank of America “site visitors” can get 35% off TurboTax Federal, for a final price of $19.45. However, there is no discount on State, making it cheaper to go with the offer above unless you only want Federal.
25% off Desktop Edition via Amazon.com
You can buy the desktop edition for Mac or PC from Amazon.com for $44.99 total, which includes Federal w/ eFile + State. According to the description, it does not seem to include eFile for state.
Additional Notes – IRS FreeFile and TaxAct
Not devoted to TurboTax? You can also check with the IRS FreeFile site to see if you qualify for other free software, usually restricted by income or military status.
Then there’s always the best no-hassle deal around: TaxACT, which again offers a free Federal return + free Efile + $14.95 for State. Total for both: $14.95.
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January 22nd, 2010 at 5:04 am
Worth noting the Vanguard 1M flagship status isn’t as impossible as it might sound. I have it, because it can pool together all the wealth of people in your extended family. I got in because my grandfather was in it and I didn’t even ask about it, they told me when I first signed up. I’m not sure of the exact formula, but if there are enough wealthy people in your family and you can link yourself to them, then you all get it. I have only 50K invested, and I’m sure my sister has less, but we are both members.
January 22nd, 2010 at 7:05 am
State farm bank does offer state for free as well – and in years when I was a part time resident in another state I’ve filed 2 states with it, all for free.
I keep a $500 6-month CD there just for this perk, since it far exceeds any lost interest on their mediocre rates.
If you do it, just be careful – if you ever log into Turbotax.com without going through the link from your statefarm account they will remove the discount on your return and you can’t get it back without starting all over again. I had it happen once last year, this year there is a big warning about it on statefarm.com.
January 22nd, 2010 at 7:51 am
Or you could just download the premier edition via bittorrent and everything is free, even state.
January 22nd, 2010 at 8:25 am
A good accountant will save you far, far more than any tax software package is going to cost. Software is never a replacement for experience.
-Billy
January 22nd, 2010 at 9:11 am
USAA is included (log-in required) in the “25% off through Vanguard, Fidelity, or everyone via State Farm”.
January 22nd, 2010 at 9:29 am
Here’s a link from SD for TaxAct that brings the price down to $11.90 for both state and federal: http://slickdeals.net/forums/s.....?t=1781494
Worked for me last night. Only a couple bucks off, but I know how much of a maximizer you are, Jonathan
January 22nd, 2010 at 9:30 am
To Ryan……..(facepalm)
Should probably also mention Costco. They’ve got TT fed/state for $50 regularly and I believe they even have a $10 coupon right now.
That’d make it $40 and certainly worth it to me. Especially if Vanguard is going to charge me $50 for the same thing. (not even a deal if you ask me)
What really gets me is how returning buyers (this is like my 10th year) don’t get a break. I think that there should be some kind of reward for customer loyalty!!!!!!!!!!!!!
January 22nd, 2010 at 1:16 pm
Fidelity let’s visitor’s to the site get the discount as well.
January 22nd, 2010 at 1:39 pm
Red,
If the IRS (federal government) and state wants my money in the first place. They should make the application and processing free. I know it costs money to facilitate those operations. But then the tax payers have to pay taxes and fees to submit their taxes? That is like stabbing someone then charging them for the bandage in the other hand. I know it states Federal is free but only for 1040ez. If the free 1040EZ submission is free because it is ‘simple’ and it takes more ‘whatever’ to process anything other than 1040ez electronically, then the IRS needs to simplify things. What annoys me also, is if you go to an accountant they will tell you THEY HAVE TO SUBMIT ELECTRONICALLY and there WILL BE A CHARGE. You’re paying taxes throughout the year, you pay someone to organize your papers (accountant – I’m ok with paying if needed), then pay taxes if owed, and finally pay to have those organized papers to be submitted. As John Stossel would say “Give Me A Break.
January 22nd, 2010 at 1:47 pm
Ryan:
In my state (CA), FTB (irs equiv) wanted to provide online free filing. turbotax lobbied hard against it and paid off lawmakers and got FTB to cripple CALFILE ( free e filing program ) so that it only works if you dont have any capital gain. So FTB has free filing online but only if you dont have any capital gain
That is democracy and free market capitalism for you.
So now turbo tax gets to charge people whatever they want for state return.
January 22nd, 2010 at 2:08 pm
I’ll give a plug for TaxAct. I’ve used in the past, and it’s pretty decent. The major caveat with TaxAct is that it won’t be able to import your brokerage data. So if you’ve got a ton of capital gains stuff to file and don’t want to enter it manually, then you’re probably better off with TurboTax. But if you don’t have much capital gains, and relatively straightforward filing, then give TaxAct a try.
January 22nd, 2010 at 2:18 pm
Well it’s paper for me. I always use paper, and I read the directions. But I don’t agree with Billy; an accountant doesn’t always make any difference at all, and for my relatively simple financial life I’ll save myself the fee.
Personally, I think it is absurd that we go to all the trouble to do this whole “free file” scenario; recommending various private companies. For most people, a web-based IRS form made by the IRS would be ideal. The only reason that they don’t do it is that it would put a lot of accountants out of business.
My answer to that is, “Tough.” Autoworkers have been replaced by robots. Typists have been replaced by computers. Accountants can be replaced. If the work you do could be done as well by a web site, you should find work that actually contributes to society.
Don
January 22nd, 2010 at 2:45 pm
Free fillable IRS forms, they do calculations and free efile
https://www.freefilefillableforms.org/
January 22nd, 2010 at 3:37 pm
For a simple return, Turbo Tax or any of the other programs work great.
For a little more complex, going to an H&R Block is fine – check on their website for EA’s and make an appointment for a particular person. Do NOT gamble and just walk in and take the next available preparer. You pay the same amount regardless of the experience/credentials, so find the best.
Anything complex with a corp, partnership, etc should probably be taken to a CPA that specializes in taxes.
Complicated Estate, Trusts, etc should be taken to a Tax Attorney.
January 22nd, 2010 at 4:16 pm
CapitalOne offers 25% off the online too. Looks like the same prices as Vangaurd. Anyone use the Online version? It’s probably irrational to worry about using the online software if I’m going to file online via desktop software anyway.
January 22nd, 2010 at 4:51 pm
make sure to check your states website first. Minnesota last year offered free state and federal 1040 and 1040ez through the freedom file, however, I could only get there through the state’s website, not from turbotax, so I ended up wasting a couple hours just to save the cost of filing state taxes.
It will be interesting to see next year, when they will require all tax preparers to be certified.
January 22nd, 2010 at 4:56 pm
Why no love for H&R Block At Home (formerly TaxCut)? I haven’t yet tried this year’s version, but I have been using TaxCut for many years after having switched from TurboTax after the whole DRM fiasco. I’ve been very pleased so far.
This year will be the real test, as I’ve been testing the waters with some small stock options purchases. We’ll see how the software handles it.
January 22nd, 2010 at 5:54 pm
@Billy – Can you provide a personal example where your accountant actually saved you more money than the cumulative extra money you’ve paid them?
January 22nd, 2010 at 9:11 pm
TaxAct is a hassle. The site constantly asks free users to upgrade.
The best no-hassle deal around: Express1040, which offers a free Federal return + free Efile + $12.95 for State. Total for both: $12.95.
http://www.express1040.com/
January 22nd, 2010 at 11:00 pm
T. Rowe Price will give you free TurboTax, if your account with them is over 250k….I think that includes
a state return, too
January 23rd, 2010 at 7:02 am
I’m still not comfortable using an online tax return service like TaxAct. Consider your tax return, SS#, etc is going to be sitting in some Tax Act database for all eternity. That’s the same reason I will never use a service like Mint.com to track my finances. I realize you can never eliminate 100% of the risk, but using a program that is loaded on your personal harddrive seems more secure.
January 23rd, 2010 at 3:00 pm
Here’s the biggest examples that comes to mind:
Sales taxes for my business – I buy a lot of things at retail (on sale) for resale out of state (online). That’s not subject to sales tax since it isn’t a B2C sale. However, you try explaining that to the Target cashier. Instead, I have to file with the state to get all that sales tax back (between $500-$1,000 annually). I submitted the forms myself for ’06-’07 and got a hassle, but I had my accountant submit them for ’08 and it wasn’t as bad. $100 accountant time = $500 – $1000 in my pocket.
Real Estate – One of my rentals is a builder leaseback. I’ll probably own it as income property for 2-3 years at which point I’ll either move into it or sell it. Because of that, I’d much rather take accelerated depreciation rather than standard depreciation to shelter as much of the income as possible (keeping today’s dollars in my pocket instead of tomorrow’s). I provided my accountant with the schedule of “upgrades” in the leaseback home, which he then figures depreciation against over 5-10 years rather than 28.5. $100 accountant time = $1,000s in deferred taxes.
January 23rd, 2010 at 8:40 pm
I have used TAX ACT and it seems pretty good. I had used Turbo Tax prior to that and I did not see a lot of difference in them.
One thing worth mentioning, even if you have a tax preparer do your taxes, you should go ahead and use one of these software packages to double check it. It prohably would only take about a few hours, and it is a good way to check if your tax preparer made mistakes.
January 24th, 2010 at 7:47 am
I had opened an LLC last year. I invested some money through it but have not earned a single penny back. This complicates my tax situation. Is going to CPA the best option? Or can I still do it via these softwares? Any recommendations? Thanks
January 24th, 2010 at 2:56 pm
I’m going with Turbo Tax myself. Hopefully I can still grab one of those discounts you’ve linked.
January 24th, 2010 at 8:45 pm
drdomore – my accountant says that having an LLC or not doesn’t effect what goes on your tax return. It is just a different form or way to hold an investment. He says that the income, gains, and losses of the investment that is in the LLC is reported just like any investment you have that isn’t in an LLC. An example is real estate. Your real estate income, expenses, and depreciation should be reported on Schedule E, regardless whether it is in an LLC or not. Hope this helps.
January 25th, 2010 at 12:47 am
drdomore, don’t forget to also file (separately) the federal and state returns for the LLC- i believe it’s the 1065 for federal, and 565 for CA, if you’re doing business in CA – most state llc forms have “65″ in the form name, but not all.
January 25th, 2010 at 11:18 am
“I’m still not comfortable using an online tax return service like TaxAct. Consider your tax return, SS#, etc is going to be sitting in some Tax Act database for all eternity.”
I agree with that too. But TaxAct (like TurboTax) has 2 versions, online and download.
January 26th, 2010 at 8:05 am
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January 26th, 2010 at 1:33 pm
Well, just filed my taxes today. Between federal and state, getting me a nice payday! Can pay off credit card debt and that prosper loan and still have enough for a nice party. LOL
I used Turbo Tax Premier as I wanted to use the 401k maximizer to get a better idea of how much more I can give to my 457(b) while still having the same net pay. I was able to go a whole 5% more as long as I increased my exceptions from 4 to 7. Filled out the W-4, made the change, signed it, went to payroll and then went to my 457(B) website to increase my contribution from 10% to 15%. What this means is that I can defnitely max out by the summer time…
This is good news for me, because I have to roll over a good chunk of my 457 into my pension so that I can buy back some time. Oh yeah this is happy, happy day!
January 27th, 2010 at 3:59 pm
Note that fidelity also offers a significant disccount on the non-web version(s) if you are willing to download it.