You Can Still File Taxes Through Credit Karma—But It’s No Longer Completely Free (2024)

Credit Karma Tax has become Cash App Taxes, but Credit Karma isn’t out of the tax game.

The company now offers tax filing through TurboTax, another product from Credit Karma’s current parent company, Intuit.

TurboTax is one of the easiest tax software platforms to use, but it often charges a fee to file your taxes; Credit Karma Tax, by contrast, was free for all users.

And, in some cases, you may not be able to file your taxes through Credit Karma. What’s going on?

An Overview of Credit Karma

Credit Karma initially provided tools to manage your credit score only, but the app has grown into an AI-powered financial platform that allows users to handle additional money matters. While you can still monitor your credit scores with daily credit report updates, the app now also uses your data to recommend financial strategies for making the most of your money.

What Happened to Credit Karma Tax?

At the end of 2020, Credit Karma sold its free do-it-yourself tax preparation platform, Credit Karma Tax (CKT), to Square. The sale was part of a proposed settlement with the U.S. Justice Department after it filed a civil antitrust lawsuit to block Intuit’s acquisition of Credit Karma.

Since then, Square has integrated Credit Karma Tax into its Cash App platform. Previous CKT users can now access prior year returns and file their taxes via Cash App Taxes.

Partnership Between Credit Karma and TurboTax

Credit Karma’s DIY tax software used to compete with TurboTax. But now that the two operate under the same Intuit umbrella, they offer integrated services to Credit Karma members in the U.S.

Credit Karma members can file their taxes with a TurboTax lookalike product embedded within the Credit Karma platform. This product can provide users with ongoing insights into their finances, income and taxes and an estimate of their tax refund.

In some cases, Credit Karma members can file their taxes from start to finish for free*.

How Do TurboTax and Credit Karma Work?

TurboTax allows you to link your existing Credit Karma account, which will share data with the tax giant. The information from your Credit Karma account will be used for your tax documents. You’ll also have access to special benefits and discounts.

Finding TurboTax in the Credit Karma App

To find TurboTax within your Credit Karma app, navigate to “Income and Taxes” from the three-line menu icon labeled “Tax Tools.” From there, you should select File Taxes. You’ll see an embedded version of TurboTax. After you’ve signed in, you can work on your taxes while staying within the Credit Karma app.

Advantages of the Credit Karma/TurboTax Partnership

Credit Karma members who may have used TurboTax or other tax software in the past will notice several potential advantages to filing their returns with Credit Karma, including:

• A seamless tax filing experience
• Potentially faster access to refunds with direct deposit into a Credit Karma Money Spend account or a TurboTax Refund Advance loan
• Deeper insights into their income, effective tax rates, estimated tax refunds and other aspects of their finances throughout the year
• Potentially free tax filing for simple returns
• Access to special offers and discounts on TurboTax for those who don’t qualify for free filing

Who Can File Their Taxes for Free With Credit Karma?

Credit Karma members have two paths for filing their taxes. Members who filed with CKT in the past can use Cash App Taxes. New filers and those who have previously used an alternative tax filing option can start the tax filing process with TurboTax on the Credit Karma platform.

Poulomi Damany, general manager of assets and tax at Credit Karma, says that while the company aims to provide free tax filing to as many members as possible, this option is only available in some tax situations.

“Many members with simple returns, meaning those only filing Form 1040, will be able to enjoy free tax filing with TurboTax within the Credit Karma app from start to finish,” Damany says, “while others may only be eligible for certain offers and discounts.”

According to the TurboTax website, some situations not eligible for free filing with TurboTax* include:

• Itemized deductions
• Unemployment compensation reported on a 1099-G
• Business or 1099-NEC income
• Stock sales
• Rental property income
• Credits, deductions, and income reported on Schedules 1-3

Those eligible for TurboTax free filing* can file federal and state income tax returns at no cost.

Some filers may receive a partial tax refund as soon as one hour after the IRS accepts their return if they take advantage of the TurboTax Refund Advance loan program.

It allows eligible users to get up to $4,000 of their expected federal income tax refund in the form of a loan that’s automatically paid back once the IRS processes their refunds.

Though the loans come with no fees and no interest, they’re not without risks. If your refund is denied or lower than expected, and you can’t repay the loan immediately out of your own pocket, you could face interest and fees.

What Happens if You Don’t Qualify for Free Tax Filing?

Credit Karma members who don’t qualify for free tax filing via TurboTax on Credit Karma’s platform will be notified and moved over to TurboTax to complete their return and pay the fee.

Damany says the cost of filing depends on the user’s tax situation and the package they select. Currently, TurboTax prices range from $69 for the Deluxe package to $129 for TurboTax Self-Employed, with state returns costing an additional $64 each. TurboTax tends to raise its prices in late February or early March; you’ll need to file early in the tax season to pay less.

For an additional fee, users can also opt to have a TurboTax Live expert provide advice, perform a final review or prepare their tax return from start to finish.

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