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
Minimum debt
$7,500
Fees
Settlement fee is 15% to 25% of enrolled debt. $9.95 escrow account set-up charge and $9.95 monthly service fee
Availability
Not available in Colorado, North Dakota, Oregon, Rhode Island, Vermont, West Virginia, Wisconsin, Wyoming or Washington, D.C.
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.
"The IRS estimates consumers spend an average of 8 hours and $160 to prepare and file a standard federal tax return," Jason Pack, 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."
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 paid Pro Support tier adds access to a tax pro, phone support, live screenshare and assistance with federal and state returns
Guarantees 100% accuracy and maximum refund
TaxAct Xpert Assist is available starting at $45
100% accuracy and maximum refund
Terms apply
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 Card users 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% back (earned as PayPal points) in everyday spending categories, which is rarer for a debit card. See terms at paypal.com/rewardspal
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- A debit card for you to spend your PayPal balance. (The PayPal Debit Mastercard® is issued by The Bancorp Bank, N.A. ("The Bancorp") pursuant to a license by Mastercard International Incorporated and may be used everywhere Mastercard is accepted. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. The Bancorp is issuer of the Card only and not responsible for the associated accounts or other products, services, or offers from PayPal. PayPal is a financial technology company, not a bank. The Card is linked to your PayPal Balance Account. See PayPal Balance Terms and Conditions.)
- Earn 5% back on a category (earned as points) you choose each month on up to $1,000 of monthly category spend. Pick a category each month – Groceries, Fuel, Restaurants, Apparel, and Rideshare/Public Transit. Find the latest available categories in the PayPal app. (5% back earned as points on up to $1,000 of selected category spend per month. Earned as points redeemable for multiple options. Terms apply.)
- Stack rewards with other offers. Find offers from top brands in the PayPal app. Simply choose a monthly category to earn 5% back (earned as points), save relevant offers in your selected category in the PayPal app, and checkout with the PayPal Debit Card online through PayPal checkout. (Offers are subject to availability. Redeem points at checkout and for other options. PayPal Rewards terms and merchant offer terms and exclusions apply. Offers change often so refer to merchant site for the most accurate information. We may earn a commission when you make a purchase.)
- Use your card online and in store, anywhere Mastercard is accepted.
- Pay with your phone. Add your card to your phone's mobile wallet and tap to pay in store with Apple Pay (Apple Pay is a service provided by Apple Payments Services LLC, a subsidiary of Apple Inc. Neither Apple Inc. nor Apple Payments Services LLC is a bank. Any card used in Apple Pay is offered by the card issuer), Google Pay (Google Pay is a trademark of Google LLC.) or Samsung Pay (Samsung Pay is a registered trademark of Samsung Electronics Co. Ltd.)
- No monthly fees or credit check (This is not a credit card)
- Withdraw cash at ATMs. It's free at U.S. MoneyPass ATMs (ATMs must display the Mastercard®, Cirrus®, Pulse® or MoneyPass® acceptance marks. Up to $400 USD daily withdrawal limit applies. Transactions at non-MoneyPass ATMs have a $2.50 ATM Domestic and International Withdrawal Fee. No fee for MoneyPass ATM Withdrawals in the U.S. International Transaction Fee applies for International ATM Withdrawals. ATM operator fees may also apply. See Cardholder Agreement for details.)
- Easily manage your card in the PayPal app. The app is your hub to save offers, check your PayPal balance, quickly add money before you shop and track your transactions. Plus, redeem your points, lock and unlock your card, and find an ATM.
- Protection from PayPal. Get peace of mind with purchase protection on eligible items. (PayPal Purchase Protection is available on eligible transactions. Terms and limitations apply. See PayPal Purchase Protection Terms and exclusions.)
- Plus, Mastercard's Zero Liability, built-in chip technology, and temporary card locking capabilities help keep your money safe. (Conditions and exceptions apply – see Cardholder Agreement.)
- Add cash in store. (Up to $3.95 cash reload fee applies. The service fee is to add cash into your PayPal Balance account.)
"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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