Cash App Taxes, formerly Credit Karma Tax, is the only online tax preparation service we’ve tested that’s totally free for both federal and state tax filing. It supports most major IRS forms and schedules and is exceptionally easy to use, making it a worthwhile choice for gig workers and other sole proprietors. A Cash App integration for bitcoin sales and more guidance for self-employed filers are among the updates for this year, though help content is still nowhere near as robust as that of paid alternatives. Note that we tested a preview version of Cash App Taxes for this evaluation but plan to give it a full review and rating once the final version is ready around the time the IRS opens filing.
Is Cash App Taxes Really Free?
Yes, it’s really free to prepare and file your federal and state taxes using Cash App Taxes. Just keep in mind that the service lacks some forms (such as 2210 for underpayment of estimated taxes) and doesn’t support some situations (such as multistate returns and foreign earned income). FreeTaxUSA, which provides more guidance and paid expert help, is also free for federal filing, though state prep and filing costs $14.99.
Most tax prep sites have a free version, but the tax situations they support are very limited. The most expensive competitor, Intuit TurboTax, charges $39 each for federal and state returns to start. Those prices are likely go up later in the filing season. In general, the more you pay to file your taxes, the more robust the help system and the better the user experience.
How Does Cash App Taxes Work?
Like all tax preparation services, Cash App Taxes takes control of the filing process like a human tax preparer would. The app asks you questions, and you answer by choosing among options and entering data. It performs all the necessary calculations in the background and then enters your answers on the correct lines of the appropriate IRS forms and schedules. When you finish the federal section, it transfers relevant data to any state returns you must file so you can complete them. Before filing your return, Cash App Taxes reviews it for errors and possible missed deductions.
Getting Started With Cash App Taxes
Before creating a Cash App Taxes account, you have to sign up for Cash App, a free peer-to-peer mobile payment app that lets you send, receive, spend, store, and invest money. You need to install Cash App’s mobile app to get started, although you can switch to using its web app after that.
Once you have an account, you enter your email address or mobile phone number, type in the code the company sends you, and supply a PIN and password. The login process is slightly more complicated than with other tax apps, though this makes me feel confident about the security of the site.
Cash App Taxes doesn’t “converse” with you like some other sites. Instead, it takes a straightforward approach and goes with an almost spartan look. It first asks for your family’s personal information, like birth dates and Social Security numbers. After that, you move on to questions about income, and then deductions and credits to try to maximize your refund. The site’s home page categorizes a comprehensive list of every group of tax topics by type, such as Family Credits, Independent Contract Work or Self-Employed, and Investments, which makes navigation simple. I never got lost, and it was easy to return to the home page at any time.
(Credit: Cash App Taxes/PCMag)
Although you can’t import 1099s like with paid sites, you can upload a photo of your W-2. Qualifying customers who sold bitcoin on Cash App in 2024 can also now import those transactions directly into their tax returns.
What Kind of Help Does Cash App Taxes Offer?
As you might expect from a free product, Cash App Taxes offers very limited help. It’s nothing like what you get with big names like H&R Block or TurboTax. Many lines on the interview pages link to explanations of the current tax topic, though they obscure the screen instead of displaying in a vertical pane to the side. Context-sensitive FAQs are available on some pages. There’s also the Tax Help Center, a searchable collection of support articles. Some of these articles pertain to the current topic, while others veer off from it (it’s the same in other tax apps). Occasionally, Cash App Taxes provides direct links to IRS materials, which somewhat defeats the purpose of using an online tax preparation service in the first place. Chat and email help are available for procedural questions, but the company doesn’t offer professional tax guidance like several competitors.
(Credit: Cash App Taxes/PCMag)
Overall, Cash App Taxes isn’t a good choice if you need to report investment sales or energy credits, for example, because they’re complex topics that often require expert help. However, gig workers and other sole proprietors with limited budgets and uncomplicated financial profiles can likely get by just fine with it.
(Credit: Cash App Taxes/PCMag)
How Does Cash App Taxes Deal With Self-Employment?
Cash App Taxes supports the necessary topics for reporting self-employment income but, again, lacks the extra help that sites like TurboTax and TaxSlayer offer. After answering a series of basic questions about your business or gig work, such as the type of work you do and what accounting method you use, Cash App Taxes inquires about your self-employment income. It starts with the 1099-K (which concerns payments through services like PayPal and your credit cards), asking you to enter the information from said form.
This page also prompts you to complete any 1099-NEC and 1099-MISC forms you receive. An additional field lets you enter gross receipts and sales that don’t appear on tax forms (such as cash and checks); you must tally these by yourself. I like the way Cash App Taxes lists all of the typical self-employed income reporting sources on one page. Some competitors separate them, which can be confusing. I also appreciate that the site has more help than before within the interview process that explains what can be unfamiliar topics.
(Credit: Cash App Taxes/PCMag)
Separate sections walk you through additional self-employment topics, such as business use of home and vehicle expenses. You report general business expenses, like advertising and office supplies, on another set of pages. I would prefer more guidance here, though the site explains each type of expense briefly in a help window. That’s at least more than what services like Liberty Tax do.
(Credit: Cash App Taxes/PCMag)
Is Cash App Taxes Safe to Use?
Cash App Taxes is an authorized e-file provider that adheres to the IRS’s business, privacy, and security standards. The company’s safety measures include 128-bit or higher encryption, a dedicated on-site security team, independent third parties that monitor the site for vulnerabilities, and support for multi-factor authentication.
Can You Do Your Taxes On Your Phone With Cash App Taxes?
Cash App Taxes works well on Android and iOS devices. The mobile app experience is very similar to the desktop browser. Some content is in a slightly different position, and some pages require a bit more scrolling, but that’s to be expected. Otherwise, it feels responsive, looks great, and uses the same data entry conventions as the desktop version. Help works the same way, too, though FAQs take up a whole page instead of overlapping it or appearing in a side pane. You shouldn’t have any issues using the mobile Cash App Taxes app to file, though the same caveat as the desktop version applies in terms of help resources.
(Credit: Cash App Taxes/PCMag)
Verdict: A Totally Free Solution for Simple Tax Situations
Cash App Taxes is a good choice if you just have some side gig income and expenses to report in addition to your personal taxes or even if you run an uncomplicated microbusiness. We like its simplicity, usability, and speed. Best of all, it’s completely free for federal and state filing. But if you anticipate needing a lot of help or uncommon tax forms, it’s worth paying more for top alternatives. We plan to fully evaluate Cash App Taxes and assign it a rating once the final version is ready, so make sure to check back soon.
While you’re working on your 2024 income taxes, you can also read up on seven ways to minimize your taxes and what to do if you can’t pay your taxes.
Cash App Taxes 2025 (Tax Year 2024)
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The Bottom Line
Cash App Taxes offers free, nearly comprehensive federal and state tax prep and filing, but it doesn’t provide as much support as paid competitors.
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About Kathy Yakal
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