The Best Ways to Save on Your Taxes Using a Credit Card
Tax season can be a stressful time for many people, and while there are many tax preparation services that can help you put together and file your tax return, many of them charge a fee for anything beyond the simplest tax forms.
The good news is that your credit card may be able to help you save money by offering discounts on tax preparation. Additionally, there are coupon sites where you can potentially stack your savings.
If you're planning to use tax preparation software to file your 2021 tax return and think you might need to pay a fee to complete the process, here are the running deals you might be able to take advantage of.
Credit Card Tax Preparation Service Discounts
Credit card companies generally don't offer bonus rewards or sign-up bonuses related to tax preparation. But during tax season, it's common for card issuers to offer deals to select cardholders.
While these deals aren't always universal, if you have a credit card with one of these major card issuers, check your online account or mobile app to see if you qualify.
Depending on which card you have and whether you're targeted, you may be eligible for one or more tax deals with American Express (a Credit Cards House advertiser). Potential options include:
Get 30% back on purchases made with TaxAct, up to a total of $60 in savings. The deal expires on April 18, 2022.
Earn 5 additional Membership Rewards points on TaxAct purchases, up to 2,000 total bonus points. The deal expires on June 30, 2022.
Spend $90 or more on Turbo Tax purchases and get $20 back. The deal expires on April 18, 2022.
To access these deals, sign into your online account or mobile account and search for it in your Amex Offers. Add the offer to your card, and be sure to use that card when you check out with the applicable tax prep service.
Bank of America
Bank of America is offering select cardholders the chance to earn up to $10 back on TurboTax purchases, depending on which tier you buy. Spend $35 or more and get $5 off TurboTax Deluxe or $10 off TurboTax Premier.
The BankAmeriDeals platform works similarly to Amex Offers. Log into your account online or from the bank's mobile app and search your active deals to see if you're eligible. Activate it, and read the terms to make sure you get the discount. The deal expires on April 18, 2022.
Capital One isn't offering any specific cardholder offers at this time. However, you can peruse tax preparation deals through Capital One Shopping, which is available to anyone, even if you don't have a Capital One credit card.
With Chase Offers, you can get $10 back on purchases made with TurboTax. What's more, you can get up to $15 in savings at checkout if you go through Chase's TurboTax affiliate link to file your return — that's $5 off TurboTax Deluxe, $10 off TurboTax Premier and $15 off TurboTax Self-Employed.
Log into your Chase mobile app to find the Chase Offer and add it to your card to get the discount. The offer expires on April 18, 2022.
If you have a Citi credit card that earns ThankYou points, you can save up to $20 on TurboTax purchases when you use your card. Additionally, you can use ThankYou points to pay for some or all of your purchase if you check out with PayPal and have your ThankYou account connected to your PayPal account (Citi is a Credit Cards House advertiser).
The deal is available through October 15, 2022. You can learn more and access the deal through Citi's TurboTax affiliate link.
If you are a Wells Fargo card member, you may be able to earn $7 back on your TaxAct purchase or 3% in bonus cash back on your H&R Block purchase. To view and activate your offer, log into your account online or from the mobile app and visit the Wells Fargo Earn More Mall.
Other Ways to Save When Filing Taxes
If you're planning to file your tax return soon, check with your credit card issuer to find out if there are any deals to help you save on the cost associated with your return. In addition to those options, here are some other potential ways you can save more:
Use coupon websites: Coupon and cash-back websites can offer cash back in the form of a percentage or a flat amount. For example, websites like creditcardshouse.com and RetailMeNot can give you an immediate discount rather than offering cash back at a later date. Others, such as Rakuten, TopCashback or Swagbucks, may offer an upfront discount or cash back at a later date.
Use your credit card to get a sign-up bonus: If you owe taxes and pay with a credit card, you can expect to pay a convenience fee. While that may neutralize the value of any rewards you earn, it could be a good way to meet the minimum spending requirement for a sign-up bonus.
Utilize the IRS Free File program: If you have an adjusted gross income of $73,000 or less, you can file your federal tax return for free through the IRS Free File program using one of its approved providers. In some cases, you may also be able to file your state income tax return for free.
As you look for opportunities to save on your tax return this year, be careful to read the fine print — and consider switching to a different service if you can save more.
Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by American Express.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.