Cash App Taxes Review 2023 (Formerly Credit Karma Tax)

Cash App Taxes Review 2023

If you want to do your taxes completely for free, Cash App Taxes (formerly Credit Karma Tax) is the only service offering truly free federal and state filing to all users. While it doesn’t have all of the bells and whistles of the premium-priced TurboTax, it handles the most common situations, including investments and taxes for your business or side hustle.

While the rebranded platform has undergone some changes, it continues to provide high-quality options for most filers. Our Cash App Taxes review breaks down everything you need to know about doing your taxes with this no-cost platform.

If you want to see how Cash App Taxes compares to other DIY tax prep options, check out our top tax software picks for 2023.


Cash App Taxes Review

Quick Summary

  • Filing is always free, regardless of tax situation
  • Audit support is included
  • No option to work with tax pros

Cash App Taxes Details

Product Name

Cash App Taxes

Federal Price

$0

State Price

$0

Preparation Type

Self-Prepared

Promotions

None

Video Review and Walkthrough

Check out the video below and see how to login, as well as how it looks once you get started:

Cash App Taxes – Is It Really Free?

Yes, Cash App Taxes is 100% free and doesn’t have any paid tiers. If Cash App Taxes supports your needs, which it does for most people, you won’t have to enter a credit card number or pay for any upsells.

A few people, such as those who worked in multiple states or earned foreign income, may not qualify to use Cash App Taxes. Users get free access to the software in exchange for downloading the Cash App and creating a Cash App account.

Cash App, formerly known as Square Cash, offers peer-to-peer money transfers similar to PayPal and Venmo. Block, Inc., the company behind the Square ecosystem of payment, payroll, and business products, owns the Cash App and Cash App Taxes.

What’s New In 2023?

After changing from Credit Karma Tax to Cash App Taxes, the software is mostly the same as in past years. However, the move from Credit Karma to Cash App Taxes came with a few feature downgrades which have yet to be replaced.

As of 2023, the Cash App Taxes does not support W-2 imports, though you were able to under the old owner. It also doesn’t support importing investment data. However, due to excellent pricing and other quality features, we named Cash App Taxes to our Best Free Tax Software list. You can find the full rankings of the Best Tax Software here.

Filers will need to enter all information from their forms manually. We were also surprised that the product didn’t catch errors like over-contributions to self-employed 401(k) plans. This error may have been picked up at the end of the software, but this is typically flagged earlier.

However, Cash App made some nice improvements to the tax filing flow. It requires users to answer a quick questionnaire to make the tax filing situation more personalized. The various income and expense factors are added to the screen to make tax filing more efficient.

Screenshot of Cash App Taxes new navigation format

Cash App Taxes new navigation format

Does Cash App Taxes Make Tax Filing Easy In 2023?

Cash App Taxes makes tax filing relatively easy for most users. It doesn’t support imports, but it has decent calculators and a good user interface. Cash App Taxes is a top choice if you mostly have information from employment or self-employment, bank interest, or a business (including a side hustle).

However, active traders (crypto or stocks) must manually enter each trade, which is a tedious, error-prone process. It also doesn’t support those who live in two states, work across state lines, or have to file in two states for any other reason.

Additionally, we found one issue associated with over-contributions to self-employed 401(k) plans. That said, these limitations won’t apply to most users. Cash App Taxes is an excellent tax software for most common situations.

Cash App Taxes Features

Cash App Taxes offers free tax filing for most people, but the software is more robust than its price tag implies. These are a few of the product’s best features.

Customized Filing Experience

Filers complete a short questionnaire at the start of the filing process. This streamlines the filing process, so users don’t have to open or review the information that isn’t relevant to them.

Completely Free Federal And State Filing

With many tax software companies, the free tier is incredibly limited, so most taxpayers are forced to upgrade to a paid tier. Not so with Cash App Taxes. It offers all of its features for free. Users only need to download the Cash App to access the robust software.

Required Multi-Factor Authentication

Cash App Taxes takes security very seriously. It requires users to use multi-factor authentication, including scanning QR codes, to start using the software. A physical second form of authentication is a best practice that few other companies offer (much less required).

Free Audit Support

Cash App Taxes provides free Audit Support (through a third party) for anyone who files using Cash App Taxes. The support includes organizing tax documents, writing to the IRS, and attending hearings associated with the audit.

Cash App Taxes Drawbacks

Cash App Taxes is suitable for the typical tax filing scenario but has a few drawbacks, especially for those seeking premium features.

Difficult To Login

The biggest drawback is that you must start with the Cash App. This could be an issue if the Cash App isn’t something you’ve used before (notice the comments from users who aren’t typically using Cash App or used to mobile-first software). However, as part of one of the biggest financial companies in the U.S., it’s generally a safe app to trust.

No Form Imports

Cash App Taxes doesn’t allow users to import W-2 or 1099 forms. This may be a dealbreaker, especially for crypto or stock traders who don’t want to enter every transaction manually.

Screenshot of Cash App taxes trade entry page

Manual entry for stock or crypto trades

Possible To Skip Or Overlook Certain Sections

Cash App Taxes’ new navigation relies on customized menu navigation. A short questionnaire simplifies the software, so users aren’t overwhelmed by irrelevant selections. However, users must manually click into each section to enter their information. Users may accidentally skip certain sections if they don’t realize it applies to them.

Cash App Taxes Pricing Plans

Cash App Taxes offers free Federal and State filing. Users don’t have to pay for anything, including free Audit Defense.

How Does Cash App Taxes Compare?

Cash App Taxes is a surprisingly robust software, especially when it’s compared to bargain and mid-tier software. Here’s a quick look at how it compares to FreeTax USA, TaxAct, and TaxSlayer.

Header
Cash App Taxes Comparison
Cash App Taxes Comparison: FreeTaxUSA
Cash App Taxes Comparison: TaxAct
Cash App Taxes Comparison: TaxSlayer

Rating

Stimulus Credit

Free

Free

Free+

Classic+

Unemployment Income

Free

Free

Deluxe+

Free+

Student Loan Interest

Free

Free

Deluxe+

Free+

Import Last Year’s Taxes

Free

Free

Free+

Classic+

Snap Pic

of W2

N/A

N/A

Free+

Classic+

Multiple States

Not supported

$14.99/state

Not advertised

Free+

Multiple W2s

Free

Free

Free+

Classic+

Earned Income Tax Credit

Free+

Free

Free+

Classic+

Child Tax Credit

Free

Free

Free+

Classic+

Dependent Care Deductions

Free

Free

Deluxe+

Classic+

HSAs

Free

Free

Deluxe+

Classic+

Retirement Contributions

Free

Free

Free+

Classic+

Retirement Income (SS, Pension, etc.)

Free

Free

Free+

Classic+

Interest Income

Free

Free

Deluxe+

Classic+

Itemize

Free

Free

Deluxe+

Classic+

Dividend Income

Free

Free

Deluxe+

Classic+

Capital Gains

Free

Free

Premier+

Classic+

Rental Income

Free

Free

Premier+

Classic+

Self-Employment Income

Free

Free

Self-Employed

Premium+

Audit Support

Free

Deluxe ($7.99)

Not Offered

Premium+

Support From Tax Pros

N/A

Pro Support ($29.99)

Xpert Help Upgrade

Premium+

Small Business Owner (over $5k in expenses)

Free

Free

Self-Employed

Classic+

Free Tier Price

$0 Fed &
$0 State

$0 Fed &
$14.99/State

$0 Fed &

$39.95 State

$0 Fed &
$0 State

Second Tier Price

N/A

Deluxe

$7.99 Fed & $14.99/State

Deluxe

$24.95 Fed & $44.95/State

Classic

$19.95 Fed & $39.95/State

Third Tier Price

N/A

Pro Support
$29.99 Fed &
$14.99/State

Premier

$34.95 Fed & $44.95/State

Premium

$39.95 Fed &
$39.95/State

Fourth Tier Price

N/A

N/A

Self-Employed

$64.95 Fed & $44.95/State

Self-Employed

$49.95 Fed & $39.95/State

Cell

How Do You Log In To Cash App Taxes?

Filers who want to use Cash App Taxes may need clarification on the login process. To create a Cash App Taxes account, you’ll need to download the Cash App first. Next, you’ll need to select the “Free Tax Filing” option from the “Banking” menu.

Screenshot of the "Free Tax Filing" button in the Cash App taxes app

From there, you’ll have the option to start filing your return immediately. Note that you won’t have to complete the full return on your phone. Once you’ve logged in using the app, you’ll have the option to scan a QR code to complete your return on a computer.

How To Login To Cash App Taxes screenshot

How Do I Contact Cash App Taxes Support?

When using completely free tax software, you’ll typically need to be willing to make a few compromises. In the case of Cash App Taxes, one of those compromises is limited support options.

Cash App does have a new dedicated Help Center for Cash App Taxes. But unlike premium tax software companies, you won’t have the option to upgrade to tiers that include access to tax pros. 

If you have a technical problem with the app, you can call the company’s main customer service at 1-800-969-1940. But if you want the ability to ask tax-related questions to experts, you’ll likely want to choose a different tax software.

Is It Safe And Secure?

Using any tax software involves certain risks, but Cash App takes security more seriously than most tax companies. It leverages its experience as a banking/brokerage company to protect user information.

Cash App Taxes meets all industry-standard encryption requirements and takes safety one step further. Users must access their accounts by scanning a QR code from their phones. Information to personal information only becomes available when a user has access to their phone and laptop simultaneously.

Is Cash App Taxes Worth It?

Cash App Taxes offers a free product that is more robust than most paid products on the market today. It doesn’t rival premium services (like TurboTax, H&R Block, and TaxSlayer), but it’s serviceable for most filers who don’t actively trade stocks or crypto. Given the ease of use, we’re recommending Cash App Taxes as a top free tax filing option for this year.

Get started with Cash App Taxes here >>

Cash App Taxes FAQs

Let’s answer a few of the most common questions people ask about Cash App Taxes.

Can Cash App Taxes help me file my crypto investments?

If you traded one or two tokens, you might want to use Cash App Taxes to file your taxes. Figuring out the cost basis on these trades won’t be too difficult. However, active traders must manually enter dozens or hundreds of transactions. This is too time-consuming to be worthwhile. Active traders should consider TaxAct or TurboTax Premier to reduce the time spent filing.

Can Cash App Taxes help me with state filing in multiple states?

No. Cash App Taxes can help you file your Federal taxes, but it does not support multi-state filing. Tax filers who filed in multiple states should consider an alternative software like Free Tax USA.

Do I have to pay if I have a side hustle?

Cash App Taxes is free for all users, including self-employed business owners and side hustlers.

Does Cash App Taxes offer refund advance loans?

Cash App Taxes doesn’t offer refund advance loans, but filers can get their returns two days earlier if they deposit to a Cash App account. This is an FDIC-insured account.

Does Cash App Taxes offer any deals on refunds?

Cash App Taxes doesn’t offer any deals or incentives associated with refunds.

Cash App Taxes Features

Federal Cost

Free

State Cost

Free

Audit Support

Yes

Printable Tax Return

Yes

Tax Extension

Yes

Import Tax Return

Yes, from Credit Karma Tax, TurboTax, H&R Block, or TaxAct

W-2 Import

No

Brokerage Integrations

No

Self-Employment Income

Yes 

Itemize Deductions

Yes

Deduct Charitable Donations

Yes

Customer Service Options

Help Center, Phone

Customer Service Phone Number

1 (800) 969-1940

Web/Desktop Software

Yes

Mobile Apps

Yes, iOS and Android

Promotions

None

Editor: Claire Tak Reviewed by: Robert Farrington

The post Cash App Taxes Review 2023 (Formerly Credit Karma Tax) appeared first on The College Investor.