Updated on Sunday, December 22, 2024: Tax season is here and as always, TurboTax is offering several discounts designed to make filing more affordable and accessible. Here’s a breakdown of the key offers available through January 2025:

1. 10% Off TurboTax Online Versions

TurboTax is offering an additional 10% off discount on its federal tax products when purchased directly from Intuit. This discount applies only to federal products and excludes state filings. It’s an excellent opportunity to save on top of any early-season discounts. However, the offer cannot be combined with other TurboTax promotions and is valid only until January 31, 2025.

2. Free Filing with TurboTax Free Edition

For those with simple tax situations, TurboTax’s Free Edition allows you to file both federal and state taxes at no cost. It’s tailored for straightforward returns, such as Form 1040 filings, and supports limited credits like the Earned Income Tax Credit (EITC), Child Tax Credit, and Student Loan Interest Deduction. While this is a cost-effective option, only about 37% of taxpayers qualify, as it does not cover complex scenarios like business ownership, itemized deductions, or investments.

3. 50% Off QuickBooks Solopreneur Bundle

Small business owners and freelancers can benefit from the QuickBooks Solopreneur Bundle, now available at 50% off for the first three months. The discounted price is $10/month, down from $20/month, making it an affordable way to manage expenses, invoices, and income during tax season.

4. Free TurboTax Freedom Edition for Military Members

Active-duty military personnel ranked E1 through E9 can access TurboTax Freedom Edition for free during the 2025 tax season. Higher-ranking military members aren’t eligible for the free version but can receive a discounted rate. To apply this offer, a military W-2 tax form from the fiscal year 2024 is required.

5. Partner Discounts Through Financial Institutions

TurboTax frequently partners with banks and credit unions to provide exclusive discounts. That incudes Bank of America, Navy Federal Credit Union,  Chase, and even AAA. Customers can access these offers by checking their financial institution’s online portal under “deals” or “partnerships.” If you’re a member of a credit union or bank, it’s worth exploring these discounts to reduce your tax preparation costs further.

TurboTax and Uber Drivers: What Changed in 2025?

In previous years, Uber drivers could rely on TurboTax for substantial discounts, including a 50% discount that was later reduced to 25%. However, this year, TurboTax seems to have discontinued these exclusive offers for Uber drivers entirely. As of now, the link that once directed users to the discount leads to an error page.

This change marks a significant shift for Uber drivers, many of whom rely on TurboTax Self-Employed for features tailored to gig economy workers, such as tracking mileage and managing 1099 income. Without the discount, drivers may need to explore alternative options or pay full price for TurboTax products.

It’s unclear whether the discontinuation is permanent or temporary, but it underscores the importance of staying updated on financial tools and promotions. While the loss of this discount may be disappointing, Uber drivers can still take advantage of general TurboTax offers or seek tax preparation assistance through other platforms.

Being an Uber Driver: Tax Considerations and Financial Insights

The gig economy continues to grow, and Uber remains one of the most popular platforms for independent contractors. However, driving for Uber comes with unique tax obligations and financial implications. Here’s a comprehensive look at what it means to be an Uber driver, including benefits, drawbacks, and tips for managing taxes and finances effectively.

History and Background of Uber

Uber was founded in 2009 as a ride-sharing platform aimed at revolutionizing the transportation industry. Over the years, it has expanded globally, allowing millions to earn income by driving passengers or delivering food through Uber Eats. As an independent contractor for Uber, drivers are responsible for managing their earnings, expenses, and taxes.

Tax Filing Requirements for Uber Drivers

As an Uber driver, you are classified as an independent contractor, not an employee. This distinction means you’re responsible for:

• Self-Employment Taxes: Uber does not withhold Social Security or Medicare taxes from your earnings. You’ll need to calculate and pay these taxes yourself, typically through quarterly estimated payments.
• Income Reporting: Uber provides drivers with a Form 1099-NEC (Non-Employee Compensation) if you earned at least $600 during the tax year. Even if you don’t receive a 1099, all earnings must be reported.
• Deducting Expenses: Independent contractors can deduct various business expenses to lower their taxable income. Common deductions include:
  • Mileage driven for Uber trips
  • Vehicle maintenance and repairs
  • Gas and oil
  • Tolls and parking fees
  • Car insurance (proportional to business use)
  • Cell phone and data plan costs

How to Sign Up as an Uber Driver

1. Eligibility Requirements: To become an Uber driver, you’ll need to meet the following criteria:
   • Be at least 21 years old
   • Have a valid driver’s license
   • Own or lease a vehicle that meets Uber’s requirements
   • Pass a background check and vehicle inspection
2. Application Process:
   • Visit the Uber website or download the app.
   • Create an account and upload the required documents, including proof of insurance and vehicle registration.
   • Complete the background check and vehicle inspection.

Once approved, you can start accepting ride requests and earning money.

Benefits of Being an Uber Driver

• Flexible Schedule: One of the biggest advantages of driving for Uber is the ability to set your own hours. You can work as much or as little as you want, making it ideal for those seeking supplemental income.
• Instant Pay Options: Uber’s Instant Pay feature allows drivers to cash out their earnings up to five times per day, providing quick access to funds.
• Tax Deductions: Independent contractors can take advantage of numerous tax deductions, which can significantly reduce taxable income.
• Diverse Earning Opportunities: In addition to ride-sharing, Uber offers delivery services through Uber Eats, giving drivers more ways to earn.

Drawbacks of Being an Uber Driver

• Unpredictable Income: Earnings can vary widely depending on location, demand, and competition.
• High Expenses: Vehicle maintenance, gas, and insurance costs can add up quickly, cutting into profits.
• Self-Employment Taxes: Unlike traditional employees, independent contractors must pay both the employer and employee portions of Social Security and Medicare taxes.
• No Benefits: Uber drivers are not entitled to benefits such as health insurance, paid time off, or retirement plans.

Tax Tips for Uber Drivers

1. Track Mileage Accurately: Use apps or a logbook to track your business mileage. This is often the largest deduction for ride-share drivers and can lead to significant tax savings.
2. Separate Personal and Business Expenses: Consider opening a separate bank account or credit card for business-related expenses. This makes it easier to track deductions and simplifies record-keeping.
3. Understand Estimated Taxes: If you expect to owe more than $1,000 in taxes, you’ll need to make quarterly estimated payments to the IRS. This helps avoid penalties for underpayment.
4. Keep Detailed Records: Maintain receipts for all business expenses, including car repairs, gas, and supplies. Digital tools like QuickBooks or a simple spreadsheet can help organize records.
5. Consult a Tax Professional: Given the complexities of self-employment taxes, it may be worth seeking advice from a tax professional or using software like TurboTax Self-Employed to ensure accuracy.

Conclusion

While TurboTax’s discontinuation of discounts for Uber drivers is a setback, there are still plenty of resources and strategies to help manage taxes effectively. By understanding your tax obligations, maximizing deductions, and staying organized, you can navigate the financial challenges of being an Uber driver with confidence. Whether through TurboTax’s general offers or alternative tax preparation tools, there are options to fit your needs this tax season.