Cash App Taxes Review: 100% Free Filing (Formerly Credit Karma Tax)
A lot of tax prep software companies tout free filing, but Cash App Taxes (formerly Credit Karma Tax) means it, with 100% free filing.
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Filing your taxes does not have to mean paying for tax software. Cash App Taxes is one of the few platforms that allows users to prepare and file their federal and state tax returns completely free.
The service traces its roots back to Credit Karma Tax, which launched in 2016 under Credit Karma, a personal finance company founded in 2007 to help consumers better understand their money. In 2020, Cash App acquired Credit Karma Tax and rebranded the service as Cash App Taxes, promising to keep the same free features that made it popular.
That promise remains in place today. The biggest change since the acquisition is that users must download the Cash App and create a free account to access the tax filing service.
Cash App Taxes (Formerly Credit Karma Tax) Features
Cash App Taxes is one of the best tax software programs, offering a variety of tax services to help every individual prepare and file their taxes online or in person.
These services include much more than what’s listed below, but these are some of the most convenient services we have found.
Help Center
Cash App Taxes has an online help center that provides assistance for technical issues as well as answers to basic preparation questions.
The search function gives you a user-friendly way to find what you need quickly without scrolling through pages of irrelevant materials. The FAQ section has comprehensive answers to the most common tax questions.
W-2 Importing
If you have a smartphone with a camera, you can import your W-2 documents. All you do is snap a photo and upload it to the system.
Cash App Taxes will read it, fill out your information and allow you to review the fields for accuracy. This is a convenient feature for preparing your tax documents online as well as on your smartphone or tablet.
Prior Year Imports
You can import your previous year’s tax return from four of the major online filing systems including TurboTax, TaxAct, H&R Block and Cash App Taxes.
If you filed with Cash App Taxes last year, getting started again is simple since much of your basic information can be pre-filled for you. If you used TurboTax, H&R Block, or TaxAct, you can upload last year’s return to pull in details like your filing status, household information, and dependents, then review everything to make sure it’s still accurate. You can do all of this right from your phone, including importing your W-2 by snapping a photo, or switch to a computer anytime and pick up where you left off. And if uploading a prior return isn’t an option, you can always enter the information manually and keep moving forward.
Tax Preparation Plans
Cash App Taxes only has one plan, and it’s free.
While other services have tiers, Cash App Taxes will allow you to file both your federal and your state returns for free with all the schedules and deductions you need. You won’t encounter any hidden fees, annoying upselling or income limits.
While other filing services may upgrade you automatically and without your knowledge as you select things that aren’t included, Cash App Taxes is always free. This makes it a pain-free, hassle-free experience for everyone.
Pros
Tax Audit Services
Filing with Cash App Taxes provides you with a free year of Audit Defense.
The coverage, provided by Tax Protection Plus, includes one-on-one guidance, document review, written responses, and representation during audits or hearings, and additional help with tax debt and identity theft issues.
The coverage is only applicable to individual returns, and it does not cover prior issues, nonresident filings, fraud, negligence, criminal investigations, and certain specialized tax matters.
Continuing to file with Cash App Taxes provides you with up to three years of extended coverage on your return.
Ease of Use
Cash App Taxes’ user interface efficiently guides you through the process, so it’s easy and convenient.
Cash App Taxes uses the answers you provide about your finances and personal information like marital status, employment and other deductions to determine what sections you need to complete.
You can fill out each section in order or skip around as needed. Cash App Taxes will also prompt you to enter additional information if it suspects you need more than the standard deduction entries.
When you’re ready to file, Cash App Taxes will prompt you to enter missing information and verify everything is correct. It can walk you through reviewing each section, after which it makes it easy to submit at the click of a button.
Maximum Refund Guarantee
Cash App Taxes’ Maximum Refund Guarantee offers up to $100 if you receive a larger refund estimate from a competitor.
To be eligible for the discount, you must first file with Cash App Taxes. If you later amend that same return with another online tax service within the same calendar year and get a bigger refund or owe less, you may be eligible for a gift card that covers up to $100 of the difference.
All filings must occur before the IRS deadline, and the guarantee only applies to current-year federal returns. State returns, previous-year returns, unsupported tax claims, and issues outside of Cash App Taxes’ control are not covered.
See full terms and conditions here.
Cons
Credit Karma’s tax services have only been around since 2016, and Cash App Taxes only took over in 2020, so they’re relatively new compared to other providers.
They may not support the more complicated tax situations that some people might need.
Cash App Taxes is a bare-bones system without the same capabilities as other competitors.
They don’t have some of the same complex features or tools others may provide. However, with the simple functions and user interface, many users may find they prefer filing their taxes this way because it’s not complicated or hard to understand.
If you live in one state but work in another, the site does not provide a way to file that state’s income tax. Some of the complexities of military tax filing might be better suited to other platforms.
You must download the Cash App in order to use Cash App Taxes, and some may find that a hassle.
It can also be difficult to use Cash App Taxes if you’ve never filed your taxes on your own before and have expert-level questions the system can’t answer. Complicated situations may not be available, but it is one of the best services for small business owners to file for free.
