Successfully completing a debt relief program can erase as much as 30% to 50% of your enrolled balance. But forgiven debt is treated as regular income by the IRS, which means you have to pay taxes on it.
Freedom Debt Relief (FDR) is providing clients with free state and federal filing this tax season, saving them hundreds of dollars. Users can submit IRS Form 1099-C (cancellation of debt) and their settled debt will automatically be calculated into their income.
Freedom Debt Relief
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Minimum debt
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Fees
Settlement fee is 15% to 25% of enrolled debt. $9.95 escrow account set-up charge and $9.95 monthly service fee
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Availability
Not available in Colorado, North Dakota, Oregon, Rhode Island, Vermont, West Virginia, Wisconsin, Wyoming or Washington, D.C.
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Highlights
Freedom Debt Relief has resolved over $20 billion in outstanding debts since 2002. It offers free credit card debt relief consultations.
The promotion is a result of a partnership with april, an AI-driven tax management platform that integrates with existing financial apps to support federal and state filing and other tax services. According to FDR, the collaboration alleviates a lot of the stress — and cost — associated with filing.
“TheIRS estimatesconsumers spend an average of 8 hours and $160 to prepare and file a standard federal tax return,” JasonPack, chief revenue officer at Freedom Debt Relief, told CNBC Select. “That’s an expense and time commitment that many Freedom Debt Relief clients may struggle to make.”
Start preparing your taxes with these options
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
The Deluxe plan comes with priority support and live chat, while the Pro Support tier adds access to a tax pro, phone support, live screen share and help on federal and state returns
Guarantees 100% accuracy and maximum refund
In the last few years, april has been collaborating with familiar names in the money-app space, including MoneyLion, Walmart’s OnePay Cash and Chime.
PayPal Debit Mastercardusers can use april’s DIY tax filing service and get their refunds up to five days early with PayPal Direct Deposit or put the funds into a high-yield PayPal Savings account.
The PayPal Debit Card allows you to earn up to 5% cash back in everyday spending categories, which is rarer for a debit card.
“Our partnership with april empowers customers to manage even more of their finances in one trusted place,” Shanthi Sarkar, PayPal VP of debit and money management, said in a statement.” [It helps] them streamline tax preparation and take meaningful steps toward setting up their finances for the year ahead.”
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