Updated on Tuesday, February 4, 2025: TurboTax is back with a number of offers for the 2025 tax season, including partner exclusives, such as for MasterCard holders. Below is a breakdown of our favorites that you can pick up today (we’re updating this list on an ongoing basis through the April 15th filing deadline):
Additional 20% Off Online Versions
TurboTax is offering an extra 20% off on all its online versions of the software, including Basic, Deluxe, Premier, and Self-Employed. This discount is valid for federal tax filings only and excludes state filings. However, this discount can be combined with early-season discounts (for a total of up to 40% off!) on select “Live” Full-Service and Assisted Versions. This deal is valid until February 28, 2025. Keep in mind that this cannot be combined with other ongoing promotions.
TurboTax is Offering to Beat the Price You Paid a CPA or Licensed Tax Preparer Last Year
Save at least 10% with TurboTax Full Service compared to the tax prep fees you paid last year. Enroll by March 18, 2025, and file your 2024 tax return by March 25 to lock in the savings. Your price will either be 10% lower than what you paid last year or based on TurboTax’s standard pricing, whichever is cheaper. Proof of last year’s tax prep fees may be necessary to qualify. This promotion only applies to personal tax filings and is not valid with other offers.
Free Filing for First-Time TurboTax Users
For those who have never used TurboTax before or skipped the software last year, there’s a chance to file your taxes for free this year. You can use the mobile app to file any tax form at no charge, but this offer is valid only if you file by February 18, 2025. Note, TurboTax Live services are not included in this offer. Some exclusions may apply.
Exclusive Partner Discounts
TurboTax has partnered with various financial institutions and credit unions across the country, such as AAA, Bank of America, Fidelity and USAA, offering exclusive discounts to their customers. These discounts vary based on the bank or credit union that you work with, so it’s a good idea to check the specific terms and deals available through your financial institution’s online portal, typically found under sections like “deals” or “partnerships.”
TurboTax Free Edition for Simple Returns
For taxpayers with straightforward filing needs, the TurboTax Free Edition allows you to file both federal and state returns for free. This edition is best suited for filing Form 1040 and supports limited credits like the Earned Income Tax Credit (EITC), the Child Tax Credit, and the Student Loan Interest Deduction. However, only around 37% of taxpayers qualify, as it doesn’t support more complex returns such as those with business income, itemized deductions, or investments.
TurboTax Freedom Edition for Military Personnel
Active-duty military personnel ranked E1 through E9 can file their taxes for free using the TurboTax Freedom Edition. This offer is available to those in the armed forces during the 2025 tax season, provided they submit a military W-2 form from fiscal year 2024. Higher-ranking service members can still access significant discounts, though not the full free version.
H&R Block’s Competing Offer
If you’re considering an alternative to TurboTax, H&R Block is offering a 20% discount on all versions of their software, including Basic, Deluxe + State, Premium, and Premium & Business. They also allow you to import last year’s tax data from TurboTax easily, using .tax or PDF files. This promotion runs until February 28, 2025.
The TurboTax & MasterCard Partnership
As part of its longstanding partnership with MasterCard, TurboTax offers a 20% discount for MasterCard cardholders on their tax preparation services. This offer has been available for several years and continues to be a popular choice for those looking to save on their tax preparation costs.
To take advantage of this offer, simply follow the TurboTax link found on MasterCard’s site. The 20% discount will apply to the cost of the product, excluding any state tax filings.
MasterCard History, Background, and Use in Tax Filing
MasterCard is a global payments technology company that has been around since 1966. Founded by a group of banks, it has since evolved into one of the largest and most widely recognized financial services companies in the world. MasterCard’s main product offerings include credit cards, debit cards, and prepaid cards, which can be used for both everyday purchases and, increasingly, for specialized needs such as tax payments.
For years, MasterCard has provided its cardholders with a range of benefits, from cashback rewards to promotional offers with partners like TurboTax. One of the key advantages of using a MasterCard to pay for taxes is its convenience. With the ability to make tax payments online or by phone, MasterCard holders can pay off their 1040, 1040-ES, or 4868 forms using their cards, while earning points or rewards for their purchase. The payment process is straightforward, and taxpayers are able to handle their obligations from the comfort of their homes.
MasterCard is also accepted by a wide range of tax payment providers, which increases its flexibility. Payment providers like Official Payments Corp and PAY1040.com facilitate tax payments for federal income taxes, allowing MasterCard cardholders to complete their transactions securely and conveniently. To process a payment, users simply need to select one of the payment options and follow the prompts provided by the payment provider, either online or through an automated phone system.
How to Use Your MasterCard to Pay Taxes
There are several ways to use your MasterCard to pay your taxes, depending on how you choose to file. The three main options are:
- Paper Return: Prepare your tax return on paper and then make your payment by phone or online.
- Electronic Filing: Use an electronic filing system, such as TurboTax or another online platform, to file your taxes and pay through the same methods.
- Authorized Tax Preparer: Have a professional tax preparer file your taxes electronically and then make the payment through MasterCard.
Once your return is filed, MasterCard allows you to pay the tax balance due using their payment processors, such as Official Payments Corp or PAY1040.com. Payment by phone is available via toll-free automated numbers, or you can complete the transaction directly online. Simply select MasterCard as the payment option, and the payment processor will guide you through the necessary steps.
Fees and Costs Involved
When using MasterCard to pay taxes, be aware that a convenience fee may be charged, which varies based on your tax liability and the payment provider. These fees are generally small, but it’s important to note that they will appear separately on your credit card statement. For example, you may see two entries on your statement: one for the tax payment itself and another for the convenience fee. The fee will be identified clearly as “Tax Payment Convenience Fee.”
It’s also worth noting that this convenience fee is applied by the payment providers rather than MasterCard itself. For this reason, the fee may differ depending on which provider you choose to handle your payment.
MasterCard and Taxes: Benefits and Drawbacks
Using a MasterCard for tax payments offers a variety of benefits. For one, it simplifies the payment process. Instead of dealing with checks, money orders, or other forms of payment, you can easily complete your transaction using a card you likely already carry. The added bonus is that many MasterCard users earn rewards, cashback, or points for their purchases, including tax payments. These rewards can be useful for offsetting the costs of tax preparation or other related expenses.
Another advantage is the flexibility of using MasterCard for payments. With access to payment portals like Official Payments Corp and PAY1040.com, taxpayers can manage their tax obligations from anywhere, at any time. Furthermore, some taxpayers may prefer the added security that comes with using a credit card for such a large payment, compared to other payment methods.
However, there are drawbacks to consider as well. The main issue is the convenience fee, which, although generally small, adds to the overall cost of using a credit card to pay taxes. Additionally, if you carry a balance on your MasterCard, you’ll be subject to interest charges, which can quickly add up. For taxpayers who can’t pay off their balance immediately, this could result in significant extra costs. Furthermore, there are limitations on the types of taxes that can be paid with a MasterCard. For example, state taxes might not be eligible for payment via this method, depending on the state and payment processor.
Signing Up for MasterCard: What You Need to Know
To take advantage of the benefits of MasterCard, you’ll first need to sign up for an account. The process of signing up for a MasterCard is straightforward. You can choose from a variety of options, including credit cards, debit cards, or prepaid cards. Many financial institutions and banks offer MasterCard products, and each has its own set of benefits, rewards, and fees.
When selecting a MasterCard, consider factors such as your credit score, the type of rewards or perks you want, and your overall financial situation. Some cards offer specific benefits for travel, while others may offer cashback or points on everyday purchases. If you plan to use your MasterCard for tax payments, make sure to check whether the card’s terms and conditions include any restrictions or extra fees for paying taxes.
In conclusion, using a MasterCard to pay taxes can be a convenient and rewarding option for many taxpayers. With access to a range of payment providers and the potential for rewards, it offers flexibility and ease of use. However, it’s essential to consider the associated fees and costs, especially if you carry a balance on your card.