Cash App Taxes
Federal filing fee
$0
State filing fee
$0
What you should know
Cash App Taxes is the new kid on the block of tax preparation services. It’s seeking to make a name for itself by providing a completely free federal and state tax return, hoping you’ll end up using its regular banking and brokerage services.
“Free,” of course, comes with limitations, but fewer than you might think. There isn’t an income limit, for instance, and you can report income and losses from investments and businesses. The biggest limitation is that there is no live or in-person help.
Pros
- Absolutely free; no hidden fees.
- Authorized IRS electronic-filer (e-filer).
- Accurate Calculations Guarantee.
Cons
- You can’t file more than one state return.
- No live help or in-person option.
- You must download the mobile app even if you’ll use a desktop computer to file.
The bottom line: Who Cash App Taxes is best for
Cash App Taxes is best for people who lived in only one state for the tax season and are comfortable with a completely do-it-yourself approach.
It supports 95 types of tax forms and schedules from the Internal Revenue Service (IRS), including ones that you commonly must pay upgrade fees to access on other platforms, such as Schedule C (profit or loss from business) and Schedule D (capital gains and losses).
You can see here the tax forms it does and does not support.
Account details are accurate as of February 9, 2024.
USA TODAY Blueprint may earn a commission from this advertiser.
Ad
Our Partner
Accredited Debt Relief
Consolidate Your Debts
Get a free, no-obligation consultation
No Upfront Fees
Pay only if your debt is successfully reduced
Via Accredited Debt Relief's website
Consolidate Your Debts
Get a free, no-obligation consultation
No Upfront Fees
Pay only if your debt is successfully reduced
Key features
- Free. The fact that this service is entirely free and covers so many different tax situations can’t be understated.
- File from your phone or computer. You can use Cash App Taxes on your desktop or your mobile device, even snap a photo of your W-2 to upload it automatically.
- Audit defense. Free audit defense is available for one to three years.
Options for human help
This is where Cash App Taxes comes up short.
While you can reach out for technical support if the app crashes or you get locked out of your account, Cash App Taxes doesn’t provide tax advice. Clicking on “Cash App Taxes Support” takes you to a webpage with a series of general advice articles.
There is no email, phone or live chat support if you have questions about your specific tax filing.
A closer look at Cash App Taxes’ products
While many tax preparation services have a myriad of software options and prices, Cash App Taxes is a one-stop shop: There are no tiers, extra costs or other products to add on. The free version provides everything the company offers.
You can import the prior year’s tax returns, even from different tax prep softwares.
There are limits, however, and they mostly apply to state returns. Cash App Taxes cannot help you file nonresident, part-year resident or multistate returns. Moreover, Cash App can’t handle how Tennessee and New Hampshire tax interest and dividends.
You also cannot file taxes in community property states (Arizona, California, Idaho, Louisiana, New Mexico, Texas and Wisconsin) if you’re married filing separately.
As of writing, not every state is available for e-filing, but Cash App Taxes says that it will be rolling out additional states each week. For states without e-filing, you’ll print and mail the forms. You should avoid procrastinating on your taxes in general, but especially when you have to mail forms.
Guarantees
- Accurate Calculations Guarantee. If a tax authority imposes penalties due to a Cash App Taxes calculation error, it will reimburse you up to a maximum of $1,000 in the form of gift card(s).
- Maximum Refund Guarantee. If you receive a larger federal tax refund (or owe less) when filing an amended 2022 federal income tax return with the same data through another online tax preparation service, then you may receive up to $100 (minimum $25) in the form of a gift card.
How Cash App Taxes stacks up
| CASH APP TAXES | TURBOTAX | TAXSLAYER® | H&R BLOCK | |
|---|---|---|---|---|
Best for | Cost-conscious filers with only one state return | People who have more complicated taxes | People who like the option of an app or desktop program | People who want the option of walking into a brick and mortar building |
Cost | $0 | $0 to $389 for federal; $39 to $49 per state | $0 to $52.95 for federal; $39.95 per state | $0 to $89 for federal; $39.95 per state |
Pros |
|
|
|
|
Cons |
|
|
|
|
Cash App Taxes vs. TurboTax
You can’t beat Cash App Taxes for price (what’s better than free), but, if your taxes are complicated, you may appreciate TurboTax’s streamlined platform that provides filing for all tax situations. The tradeoff is that TurboTax’s many paid tiers and options can add up to a surprisingly large price at the end, the cost of which either comes out of your wallet or your refund.
Cash App Taxes vs. TaxSlayer®
If you need to file a return in multiple states or if you want the option of expert tax support, then TaxSlayer is a cost-conscious alternative. It’s less expensive than most of its competitors and all filers have unlimited phone and email support. It has mobile and desktop versions, with the app earning similar ratings to Cash App on iOs and Android platforms, just above four stars.
Cash App Taxes vs. H&R Block
Whereas Cash App Taxes came to be in 2021, H&R Block has been around since 1955. The latter has an established reputation, with thousands of brick-and-mortar branches across the nation and plenty of support options. It is also considerably more expensive. Which you choose will depend on how much you value an institution’s experience, how much expert help you’d like and how much you’re willing to pay.
Frequently asked questions (FAQs)
Yes, we even named it as one of the best tax softwares.
When e-filing, once you hit the submit button, filing is almost instantaneous. It typically takes the IRS 24 to 48 hours to accept the filing and less than 21 days to issue refunds.
How long it takes you to complete the paperwork depends on you and your tax situation. It’s possible that it can take only a few minutes.
The refund estimator on Cash App Taxes promises to give you an idea of what your return might look like, but makes no guarantees. If you file with the company, however, you get an Accurate Calculations Guarantee, which covers up to $1,000 in penalties.
Personal payments from family and friends aren’t taxable, but you should always report income made from selling goods (such as clothes and furniture), providing services (such as cleaning or dog walking) and renting property.
For the 2023 tax year, the IRS requires payment apps and online marketplaces to file a 1099-K form for all accounts that receive over $20,000 in payments from over 200 transactions for goods or services.
