I Asked ChatGPT How To Avoid Paying Big Money for Tax Software -- Here's What It Said

Laura BogartWed, February 25, 2026 at 1:06 PM UTC

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Living in the digital age, most aspects of your life have gotten easier — including filing your taxes. Thanks to the plethora of tax software available, you don’t need to be a tax whiz — or hire one — to know what you owe Uncle Sam (or what he owes you). But sometimes that software feels so expensive, you wonder why you didn’t just go to an in-person professional.

Fortunately, you can access tax software without forfeiting your entire refund to pay for it. Eager to find affordable options, I turned to ChatGPT and asked a simple question: How do I avoid paying big money for tax software? It offered some surprisingly straightforward answers.

Use Free Filing Options

The AI took its mission seriously, starting with IRS Free File. I like the word “free.” However, ChatGPT cautioned that this option is available only if my adjusted gross income falls below a certain threshold.

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“If your adjusted gross income (AGI) is below a threshold (about $78,000 for tax year 2025), you can use free brand-name tax software through the IRS website,” it said. “No cost, full preparation and e-file. The software is similar to paid versions but free through the IRS partnership program.”

That income threshold can change from year to year, so it’s important to verify the current limit directly on the IRS website before filing.

ChatGPT also noted that some tax providers offer free filing directly on their websites for basic returns — Form 1040 only — even if your income exceeds the IRS Free File limit. These versions typically cover simple returns without itemized deductions, self-employment income or investment sales, so read the fine print before you start.

Look for Low-Cost or Discount Offers

Tax season isn’t just busy for taxpayers; it’s also a boom time for software companies. ChatGPT said many capitalize on the rush by offering early-season discounts or promotional partnerships, including student and military discounts and nonprofit partnerships.

The AI suggested keeping an eye out for:

Advertisement

Seasonal promotions

Retail bundle deals (software and related services)

Discount links through the IRS Free File program

Regrettably, ChatGPT didn’t explain how to find these offers, so I did an old-fashioned Google search for “low-cost or discount tax software.” That search produced several options and led me to a roundup from CNBC that lists top recommended tax software and notes whether a free version is available.

It’s also a reminder that ChatGPT can be a starting point — not the end-all, be-all — of your research. Otherwise, you might miss useful information.

Avoid Unnecessary Paid Upgrades

Another way to trim costs is to skip add-ons or upgrades that mainly increase your bill.

“Tax software often pitches ‘maximum refund’ or audit protection upgrades that aren’t required,” ChatGPT said. “You usually don’t need these for ordinary tax filing. Skip add-ons unless you truly want that extra service.”

In many cases, the base version of the software already includes the calculations and forms most filers need. Paying extra doesn’t necessarily mean you’ll receive a larger refund — it may simply mean you’ve added optional services.

When You Might Still Pay a Little

Ever helpful, ChatGPT also prepared me for situations where paying a small fee might make sense — especially if your return is more complicated. Features that may cost extra include:

Live support from tax professionals

Audit defense

Guidance on complicated deductions (businesses, rental properties, investments)

“Even then, low-cost professional e-filing and consulting options are often cheaper than premium software,” the AI wrote.

Good to know.

The Bottom Line

Preparing your taxes is easier with good software. But you don’t need to blow your budget for high-quality options. Affordable — and even free — software can take the guesswork and the financial sting out of filing your taxes.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.

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