The “Tax Prep” Software Fees You Can Legally Avoid

February 10, 2026

Tax season is stressful. Around 46% of Americans say that filing their taxes is the most stressful financial event of the year. And 55% of Gen Z say filing is the most stressful part of “adulting.” On top of that, you start filing your return, thinking that you won’t have to pay anything to submit your paperwork. But that’s not always the case. Some of the “free” tax prep tack on sneaky add-on charges that can stack up fast. Whether you’re filing a simple return or something slightly more complex, you don’t have to fall into the trap of paying for services you don’t need. Here are seven add-ons to look out for that you can totally turn down.

1. “Free Edition Upgrade” Fees

Tax prep companies often lure users in with a free version, only to push an upgrade once they enter certain forms. These prompts usually appear when you add income from gig work, unemployment, or basic deductions that should still qualify for free filing. Many taxpayers don’t realize that the IRS Free File program covers far more situations than commercial software suggests.

If you qualify based on income, you can legally avoid these upgrade fees by using an IRS-partnered provider instead of the software’s branded “free” tier. Before clicking “upgrade,” check whether your tax prep needs are covered by a legitimate free filing option.

2. State Filing Fees

One of the most common surprises is the extra charge for filing a state return, even when the federal return is free. Tax prep companies often bundle this fee into the final steps, making it feel unavoidable. However, many states offer their own free filing portals that handle basic returns without cost.

You can legally avoid state filing fees by completing your federal return through a free IRS partner and then filing your state return directly through your state’s Department of Revenue website. This small detour can save you $20–$40 instantly.

3. “Document Storage” or “Access” Fees

Some tax prep platforms charge users to store or redownload their own tax documents after filing. These fees are often framed as “document access,” “PDF retrieval,” or “secure storage,” but they’re entirely optional. You can legally avoid these charges by downloading your return immediately after filing and saving it to your own device or cloud storage.

Financial experts say keeping your own copies protects you from unnecessary fees and future headaches. With one quick download, you eliminate the need for any paid document storage service.

4. Refund Transfer Fees

Refund transfer fees are marketed as a convenient way to pay tax prep costs out of your refund instead of upfront. What many taxpayers don’t realize is that this convenience can cost $40–$60, making it one of the most expensive add-ons in the tax prep world. You can legally avoid this fee by paying with a debit or credit card instead of using your refund as payment.

If you’re using a free filing option, there’s no fee to pay at all, so there’s no need for a refund transfer in the first place. Avoiding this charge keeps more of your refund where it belongs: in your pocket.

5. Audit Defense Packages

Audit defense packages are often presented as essential protection, but most taxpayers will never need them. The IRS audits less than 1% of individual returns, and many of those audits are simple mail-based requests for clarification.

You can legally avoid these tax prep add-ons because they’re optional insurance products, not required services. If you want peace of mind, you can instead keep organized records and respond promptly to any IRS notices. For most people, paying extra for audit defense is unnecessary and offers little real value.

6. “Expert Review” or “Live Help” Add-Ons

Tax prep companies increasingly push expert review services, live chat upgrades, and “pro help” packages. These add-ons can double or triple the cost of filing, even when your return is straightforward. You can legally avoid these fees by using free IRS resources, including publications, online tools, and phone support.

Many taxpayers also qualify for free assistance through Volunteer Income Tax Assistance (VITA) programs. Unless your tax situation is unusually complex, you don’t need to pay extra for help.

7. Credit Monitoring and Identity Protection Bundles

Some tax prep platforms bundle credit monitoring or identity protection services into the checkout process. These services are optional and often overpriced compared to standalone providers. You can legally avoid these fees by declining all add-ons and using free credit monitoring tools available through major credit bureaus.

The IRS also offers free identity protection PINs for added security. There’s no need to pay extra for something you can get at no cost.

Smart Filing Starts With Knowing Your Options

Tax prep companies rely on the fact that most people rush through the filing process and accept fees without question. When you slow down and understand what’s optional, you can avoid unnecessary charges and keep your tax prep costs low. Free filing options exist for millions of Americans, and state agencies offer tools that eliminate the need for paid upgrades. With a little awareness, you can navigate tax season confidently and avoid paying for services you don’t need.

Which tax prep fees have you been hit with in the past, and which ones are you planning to avoid this year? Share your experience in the comments to help other readers save money.