Cash App Taxes is just one of the many tax-filing services on the market. Below are some alternatives you might consider, depending on your situation. It’s far from a comprehensive list but it can help get you started in exploring your alternatives.
What Is Cash App Taxes?
Cash App Taxes is a 100% free tax filing service that allows you to file both your federal and state tax returns quickly from either your computer or phone.1 It is owned by Cash App, the online payment app that allows you to send or receive money instantly. Cash App acquired Credit Karma Tax in 2020 and that is when it planned to launch Cash App Taxes.
Cash App primarily serves as a peer-to-peer payment service, the company also offers a bank account with a corresponding debit card to spend and manage your money just as you would with a traditional checking account. Cash App was founded in 2013 and is owned by the fintech company Block Inc, formerly Square.
How To Use Cash App Taxes?
Cash App Taxes states that it is a free and simple solution to help you file your annual federal and state tax returns. Below you’ll find a step-by-step guide to filing your taxes with Cash App Taxes.
When do you need to pay taxes on Cash App transactions?
In addition to offering its tax-filing service, Cash App also serves as a peer-to-peer payment app. While you won’t have to pay taxes on any personal transactions you use the app for, you will have to pay taxes on business transactions. Cash App will send you Form 1099-K if you have more than $600 of payments in your business account. You’ll have to report this income when you file your tax return and you can expect to pay taxes on it just like any other form of income.
Can I file state taxes with Cash App Taxes?
Yes, you can file your state tax return with Cash App Taxes, and just like your federal return, it’s free to file. However, you can’t file your state return unless you’re also filing a federal return with Cash App Taxes.
Should You Use Cash App Taxes?
Cash App Taxes is one of many tax-filing services on the market, and it can understandably be difficult to compare your options and choose the right one. To help you choose the best tax filing software for you, we’ve summarized the pros and cons of using Cash App Taxes.
What is a cash app tax refund deposit?
Deposit paychecks, tax returns, and more to your Cash App balance using your account and routing number. You can receive up to $25, 000 per direct deposit and up to $50, 000 in 24 hours. Cash App makes direct deposits available as soon as they are received, up to two days earlier than many banks.