Cash App Taxes (formerly Credit Karma Tax) is a part of the financial services platform Cash App. It offers a no cost federal and state tax preparation for DIY filers. Its feature set is somewhat limited compared with other tax-prep services, and you don't have the option of paying for expert help.
Business Insider's personal finance team compared Cash App Taxes to the best tax software and found it to be a standard offering.
Cash App Taxes Pros and Cons
Pros
- Most tax situations covered
- No fees
- File from your mobile phone
Cons
- Can't file multiple state returns
- No help from tax professionals available
- Only W-2 uploads
- Offers no help with audits
- Cash App account required
File Your Taxes
- No charge for filing taxes
- Easy-to-use interface
- Supports a wide range of tax situations and major IRS forms
- Free audit defense
- Can’t file multiple state returns
- No help from tax professionals available
- Limited customer support
- Cash App account required
Cash App Taxes offers free, straightforward federal and state tax filing. It doesn't support multiple state returns, part-year state returns, or foreign earned income.
Compare Tax Companies
Who Is Cash App Taxes Best For?
Frequent users of Cash App may find it convenient to file their personal taxes on the platform. If you're reasonably confident in your knowledge of taxes and comfortable with a full do-it-yourself approach, you should strongly consider Cash App Taxes.
Unlike other tax services, Cash App Taxes are no cost for even complex situations, like itemizing deductions and reporting crypto sales, and state returns are included.
Overview
Navigating Cash App's Platform
If you don't already have it, you'll need to download Cash App on your phone and create an account. No cost tax filing will appear as an option on the home menu of the app.
Compatibility Across Devices
You can prep your return and file on a desktop computer or through the app once you verify your identity with a few quick questions.
Cash App will require you to prepare your federal tax return before filling out your state tax return.
Customer Support Options
Help Center Resources and Guides
If you need a refresher on a form or aren't sure where the numbers go, Cash App Taxes has an FAQ section that provides an overview of different forms and explains how to report them.
Contact Options and Response Times
Cash App Taxes provides no phone number, only an email address, for customer support. You won't be able to talk to a tax professional, though, as Cash App Taxes does not provide tax or legal advice.
Cash App has a general helpline listed on its website that is available from 9am to 7pm ET.
Security and Data Protection
Company Security Measures
Cash App Taxes uses industry-standard security and encryption practices. All users must set up their accounts with two-factor authentication.
Certifications and Industry Standards
Cash App Taxes is authorized to e-file federal tax returns and abides by all IRS standards to protect users' information.
Cost
No Cost Filing Options
Cash App Taxes only offers no cost tax filing. There are no tiers of service available, as most other tax-prep services have. When you file a federal return, you can file a state return at no additional charge, but you cannot file a state return alone or file multiple state returns.
The platform will work for most tax situations, but there are a couple of forms and situations Cash App won't support. If you earned foreign income or are a non-U.S. resident who needs to file a 1040-NR, you won't be able to file with Cash App Taxes.
If there's a calculation error on your return that results in federal or state penalties or interest charges, Cash App Taxes will reimburse you up to $1,000 in the form of gift cards. This falls short of the typical accuracy guarantee offered by leading tax services.
Paid Versions and Features Included
Like a typical tax-prep process, it's split into sections — income, deductions, and credits — where you can save your progress and return later. You can take a photo of your W-2 or upload it to pre-fill some of the prompts, but 1099 uploads are not yet supported.
There are no paid tax-prep plans at Cash App Taxes. Other services like TurboTax or H&R Block have a free tax-prep option but require a paid upgrade if you need to claim most credits or deductions, have self-employment or investment income, or want to chat with a tax expert.
Cash App Taxes is no cost, but Cash App's other features may not be. Cash App offers more services than tax preparation alone, and if you decide to use them, you may have to pay a fee. For instance, if you use a credit card on Cash App to make an online purchase, there's a 3% transaction fee.
State Filing Costs
Preparing and filing one state return with Cash App Taxes is no cost. The platform does not support multiple or part-year state returns or returns for Tennessee or New Hampshire. You must file your federal return in order to file a state return.
Customer Experience
Compilation of User Feedback
Cash App Taxes must be accessed through Cash App, a popular financial services mobile application. Cash App has 7 million ratings in the Apple app store with an average rating of 4.8 out of 5 stars. It has more than 3 million reviews on the Google Play store with an average 4.6-star rating.
Overall Rating and Satisfaction
Cash App Taxes is not accredited by the Better Business Bureau, but users have filed complaints with the company that have been addressed by the business. Some customers have complained about the app's calculation accuracy, though these claims are unverified, and the quality of customer service channels.
Alternatives
TurboTax
$0 for Free Edition (~37% of filers qualify. Form 1040 and no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest), $39 to $69 for Deluxe, $89 to $129 for Premium
- Can be good for relatively complex tax situations that may require help navigating deductions and forms
- Offers step-by-step guidance
- Ability to upgrade for instant access to an expert
- Not all users will qualify for a $0 filing option
- Most expensive option for many tax situations
- No brick-and-mortar locations to meet with a tax pro
TurboTax is among the most expensive options for filing taxes online, but offers a high-quality user interface and access to experts. It's especially valuable for self-employed filers who use QuickBooks integration.
TurboTax Tax Software- Tell TurboTax about your life and it will guide you step by step. Jumpstart your taxes with last year’s info.
- Snap a photo of your W-2 or 1099-NEC and TurboTax will put your info in the right places.
- CompleteCheck™ scans your return so you can be confident it’s 100% accurate.
- You won’t pay for TurboTax until it’s time to file and you’re fully satisfied.
- TurboTax is committed to getting you your maximum refund, guaranteed.
Cash App Taxes is completely cost free for nearly all personal tax filing needs, while TurboTax is cost-free for only a limited set of filers. TurboTax's free federal and state plan does not support self-employment income, stock sales, rental income, or unemployment income, and restricts tax deductions and credits. All other tax situations require an upgrade to a paid product. TurboTax does have the upper hand, however, if you're looking for expert help (starting at $49).
H&R Block
- Seamless data entry when you upload tax documents (PDF or photo of paper document)
- Interface is modern and easy to navigate
- Instructions are clear and helpful
- Company doesn't try to upsell you while preparing a return
- Ability to save your spot and return later
- Offices in all 50 states where tax professionals can prepare your return in person or virtually
- Cost
- $0 option does not include itemized deductions
- $0 plan does not offer on-demand chat or phone support
H&R Block has something for everyone, whether you're filing online yourself, looking for expert advice, or want to hand it off to a professional. While it doesn't offer the lowest prices you'll find for tax software, the quality of the overall user experience can justify the higher cost.
H&R Block- File your own taxes
- Step-by-step guidance
- Add expert tax help any time
- Real time results
Despite H&R Block covering more situations than TurboTax for no cost, Cash App Taxes still beats them both. H&R Block, like TurboTax, stands out for offering filers the option to pay for on-demand help from a tax professional when they have questions, but its no cost federal option is limited in scope. Cash App Taxes is the better option for most people who don't want to spend a dime and haven't experienced any major financial changes in the last year.
FreeTaxUSA
- Don't qualify for free federal returns elsewhere
- Value affordability over convenience
- Don't mind extended wait times for customer support
- Qualify for free federal and state tax returns elsewhere
- Appreciate time-saving features like document upload
- Want personalized advice from an expert
- Have foreign earned income, are a nonresident alien, or live outside the US
Able to prep and file your federal return for free, and add on a state return for a low price.
FreeTax USA- Clean and modern interface
- Upgrade to priority customer support for $6.99
- Easy prior-year return import, but no document upload
Cash App Taxes is no cost when you file a federal and state return. FreeTaxUSA charges $14.99 if you need to file a state return. If you're in need of help from a tax pro, you won't find any available with Cash App Taxes. FreeTaxUSA offers personalized tax help, but you'll have to pay $39.99 to get it.
Why You Should Trust Us: How We Rated Cash App Taxes
We rated Cash App Taxes on five factors that we determined to be most critical in a standout tax software product: cost, value, user experience, access to experts, and trustworthiness. Cash App Taxes is a newer addition to the tax software market but proved a worthy competitor to household names, especially for the huge swath of Americans who qualify for free tax filing.
For more information, see our tax software methodology.
FAQs
Is Cash App Taxes really free for all users?
Yes, Cash App Taxes is 100% free. There are no paid options for Cash App Taxes. However, in order to use the service, you must have a Cash App account.
What forms are supported by Cash App Taxes?
Most forms for individuals filing taxes are supported by Cash App Taxes. You can't use the platform to prepare business returns for S corps, C corps, LLCs, or partnerships.
Is Cash App Taxes safe and secure for filing?
Yes, Cash App Taxes is safe and secure for filing. It uses industry-standard security and encryption practices to protect users' accounts and sensitive information.
Can I use Cash App Taxes for state filings?
Yes, Cash App Taxes allows you to file one state return when you file a federal return. Users cannot file a state return independently.
What are some common issues with Cash App Taxes?
Cash App Taxes may not meet your needs if you moved to a new state during the tax year or if you earned income in more than one state.
Can I access my tax returns through Cash App?
You can access tax returns you previously filed with Cash App Taxes in your account. If you filed tax returns with Credit Karma Tax, you may access the previous year's tax returns online if you send a request.
