Cash App Taxes Review: Free and Convenient Filing

4.9

GBR RATING

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Quick Take: Cash App Taxes provides a simple, secure and free tax e-filing alternative. Taxpayers with relatively simple returns will benefit from its easy-to-use interface.

Cash App Taxes Overview

Cash App Taxes — formerly Credit Karma Tax — has offered free federal and state e-filing since Block acquired Credit Karma’s tax platform in 2020. Built into the Cash App, it aims to make filing simple, fast, and accurate–especially for taxpayers with straightforward returns.

During the 2024 filing season, the IRS processed hundreds of millions of electronically filed returns, underscoring how common e-filing has become. Cash App Taxes remains one of the few providers offering completely free federal and state returns, with no upsells for added schedules.

Key Features

GOBankingRates measured four essential attributes of tax e-filing services — cost, simplicity, security and accuracy — and came up with a rating placing Cash App Taxes among the leaders in this personal finance category.

Cost

Cash App Taxes is 100% free, meaning there are no fees for:

• Schedule A: Itemized deductions
• Schedule B: Interest/dividends
• Schedule C: Self-employment income
• One state return

Cash App supports state returns for 40 states and Washington, D.C., but only joint returns for married taxpayers in community property states. It doesn’t support more than one state return, which is important for taxpayers who moved. Users must file federal returns to get state returns filed.

Simplicity

Cash App offers its tax filing from a button on the app and website home screen. The app guides users through a series of basic questions about their employment, income and expenses. Users respond by clicking on buttons or entering figures. 

The app then creates a series of IRS forms with the appropriate numbers filled in. Users may review the forms on the screen or download them as PDF files. The app displays the resulting balance owed or refund amount before uploading the forms directly to the IRS. 

Also making the process easy for former Credit Karma Tax users, Cash App allows access to previous returns.

Security 

Cash App uses 128-bit encryption, which is the same standard used by the National Security Agency to protect secret information. Cash App has a dedicated security team, while third parties monitor the site for possible vulnerabilities and malicious actors. The app requires two-factor authentication every time a user logs in.

Accuracy

Cash App offers a few guarantees and perks for users in regards to tax return accuracy, including:

• Accurate Calculations Guarantee: You may qualify for a reimbursement up to $1,000 (gift card) if Cash App’s calculation error causes penalties or interest.
• Maximum Refund Guarantee: If another service finds a larger refund on an amended return, Cash App pays $25-$100 via a gift card.
• Free audit consultation: If you filed through Cash App Taxes, you can talk to an expert for free.

Who Cash App Taxes Is Best For

Cash App Taxes is ideal for those with simple and straightforward tax situations. If you’re a DIYer and are used to filing your taxes through online software, Cash App Taxes is one of the better options available.

If you have more complicated tax situations, you might not be able to file with Cash App Taxes.A few common situations are not supported, including:

• Foreign tax credit
• K-1 income
• Foreign earned income over $600
• Complex investment or business structures
• Live tax-expert guidance

For most DIY filers, though, Cash App offers one of the best values in the market.’

Good To Know

Taxpayers who moved during the tax year may need to file more than one state tax return. In such situations, they’ll need to find an alternative to Cash App Taxes, as the service does not support e-filing of more than one state return.

Cash App vs. Comparable Options

Here’s a look at alternatives you might consider to help you decide whether Cash App Taxes is right for you.

TurboTax

TurboTax has been around for over 25 years and earns good reviews for its detailed and thorough walk-through interview, which guides the taxpayer to all possible deductions, credits and exemptions. It also provides expert assistance should the user have a question on tax rules. It’s free for taxpayers filing the most basic returns, but for everyone else prices range from $79 to $129, depending on the complexity of your return. Cash App Taxes beats it for value for taxpayers with relatively straightforward returns and a good knowledge of their tax situation. 

H&R Block

Familiar nationwide as the neighborhood tax shop, H&R Block offers an online tax service that is accessible and free for those with simple tax returns. For more complicated situations, such as itemized deductions, investments, rental income or self-employment, prices range from $60 to $125. A consultation with a tax professional, either online or at a physical location, bumps the charge to a minimum of $125.

If you decide to go it alone, there’s a MyBlock mobile app that, according to several reviewers, works best if the user can get online to complete the return and e-file.

TaxAct

The TaxAct package is probably Cash App’s closest competitor. It has a free option that will work for the simplest returns, and service levels priced up to $69.99, with all offering live expert assistance as well as an accuracy guarantee worth up to $100,000. TaxAct promises to reimburse users for any penalties or interest levied by the IRS on returns filed with its platform if the penalties or interest resulted from an error in TaxAct’s software.

How To Get Started With Cash App Taxes

Getting the app and an account is necessary if you want to try Cash App Taxes. It’s a simple matter of downloading Cash App to your mobile device, either through the App Store or Google Play or by scanning a QR code on the website’s homepage. Once that’s done, you’ll need to sign up for an account.

Simply launch the app by tapping on its icon. Then enter your phone number or a valid e-mail address. The app sends a numeric code by email or text. This verification code is then entered back into the app, which also will need debit card information to link the app to your bank account. 

The tax feature can be accessed directly from the home screen on the mobile app. You can also get everything done online through the Cash App website.

Final Take

Cash App Taxes provides a convenient and no-cost way to file a personal tax return. With plenty of other features and services available, Cash App can also simplify your financial life by moving your banking to a mobile platform while avoiding yet another tax platform’s sign-up, login, password and security worries. 

Jacob Wade contributed to the reporting for this article.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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