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Who should use Cash App Taxes?

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davieddaniell
Who should use Cash App Taxes?

If you're looking to file tax returns by yourself, there are a variety of tax preparation services to choose from.


For example, Cash App Taxes offers free preparation online or through the app. Cash App Taxes may sound like a new tax service, but it was actually previously known as Credit Karma Tax.


Who should use Cash App Taxes?


Cash App Taxes works best for someone who knows how to file their tax return independently and is searching for a straightforward process.


The interface isn't overwhelming since it lets you answer a few questions one step at a time. Unlike other tax services, it is free whether you have a basic tax situation, you're self-employed, or you've earned investment income.


Cash App Taxes doesn't have distinct packages that let you file with an expert or file for specific tax situations like TurboTax or H&R Block. You'll have to search for these tax forms on your own and be confident in your knowledge about taxes to use this platform.


·       You might like filing with Cash App Taxes if you:

·       Already have Cash App on your phone

·       Are looking for a free tax option

·       Have filed your taxes by yourself

·       Seek an easy-to-use filing system

 

You might not like filing with Cash App Taxes if you:


·       Need more than one state tax return

·       Need to file a tax form that isn't currently supported by the platform

·       Prefer to get guidance from a tax expert

·       Haven't filed your taxes independently before

·       Prefer not to download Cash App to utilize the tax preparation service

·       How does Cash App Taxes work?

·       Cash App Tax lets you file your federal and state tax returns online.


If you don't already have the app, you'll need to download Cash App onto your phone and sign-up first. Free tax filing will appear as an option on the home menu of the app.


You may file tax returns online or through the app once you verify your identity with a few quick questions. The platform will work for most tax situations, but there are a couple of forms and situations Cash App won't support. If you've worked in more than one state, earn foreign income, or are a non-US resident who needs to file a 1040-NR, you won't be able to file with Cash App.


Cash App will require you to file for your federal tax return before filling out your state tax return. You won't be able to file only a state return. The tax return form is split into sections — income, deductions, and credits — so you can complete your tax returns in stages.


If you need a refresher on a form or aren't sure where it goes, Cash App Taxes has an FAQ section that provides an overview of different forms and explains how to report them. You won't be able to talk to an expert, though.


What do you get with Cash App Taxes?


Simple interface. You'll be prompted to answer questions in stages, which gives you time to process information.

Mobile and online features. You'll be able to fill out the form on your phone, on both, or go back and forth.

Free audit defense. If you're audited, Cash App may membership to its Protection Plus Audit Program, where you'll be able to receive assistance and consultation. You can see who qualifies for the program here.

Accuracy guarantee. If there's a calculation error on your 2022 tax return due to Cash App's platform and the IRS or state tax authority imposes a penalty, the company will reimburse you with a gift card of up to $1,000, depending on the fee you're charged.


Is Cash App Taxes free?


Yes, Cash App Taxes is a free tax service. You won't be charged a fee for filing a federal or state tax return.


Other services like TurboTax or H&R Block have a free tax option but will charge you a fee if you plan to include certain credits or deductions or use a tax expert.


Cash App Taxes is free, but Cash App's other features may not be. Cash App offers more services than tax preparation alone, and if you decide to use them, you may have to pay a fee. For instance, if you use a credit card on Cash App to make an online purchase, there's a 3% transaction fee.


Is Cash App Taxes as good as TurboTax?


You might prefer Cash App Taxes to TurboTax if you're looking for a straightforward free tax service that will cover most tax situations. At TurboTax, you'll have to look at individual packages and determine which best fits your circumstance.


If you'd prefer to file with an expert or at least have the option of speaking with an expert, TurboTax will be the better option. Cash App Taxes doesn't offer any tax services that let you speak one-on-one with an expert.


Are there any downsides to using Cash App Taxes?

 

Cash App Taxes won't be suitable for you if you've lived in more than one state over the last year because it doesn't let you fill out multiple state tax returns. If you have a form on this list, you also can't file your tax return on Cash App Taxes.


Another thing to note is that Cash App Taxes offers limited customer service support. There's an FAQ section on the website, but if you have a more nuanced problem, you'll have to send an online message and wait for them to get back to you.


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