How to File Taxes With Cash App? Is Cash App Safe For Taxes?

Tax returns are always a pain in the neck, but not anymore. Here I will explain how to file taxes with Cash App for free. Cash App has recently launched another feature with which you can file your taxes with Cash App.

Cash App is basically a peer-to-peer payment app that is used by millions of users to send and receive money. You can also use Cash App to shop online and make purchases in the stores.

There are many tax filing software out there, most of them charge a fee for their services, and honestly, that software is not as good as they claim.

Cash App has proven itself in the field of payments and has now allowed its users to file their taxes with Cash App for absolutely free. Let’s see how to file taxes with Cash App?

Credit Karma Tax is Now Cash App Taxes

Cash App has formally acquired Credit Karma Tax, so Cash App is not starting from scratch. Credit Karma was one of the best tax filing companies that has no fee.

So Cash App got an already established platform to allow its users to return taxes for free. Credit Karma Tax was acquired by Cash App in 2020 and rebranded the tax filing service to Cash App Taxes this year.

How to File Taxes With Cash App?

If you want to use Cash App’s 100% free tax filing, you will have to create a Cash App account. After that, you will be able to file your tax returns from Cash App.

You can use Cash App Taxes to return both state and federal taxes without paying a fee. Cash App also doesn’t charge anything if you are taking deductions or credits.

Do You Need a Cash App Account to File Taxes With Cash App?

Yes, you need to have a Cash App account to use this service. If you don’t have a Cash App account, you can easily create one for free. A Cash App account is necessary.

All Cash App users can start using the Cash App Taxes feature for free, You can not file your taxes from within the app though, which is kinda drawback. Cash App requires you to log in to your account on a PC to file your tax returns with Cash App?

If you are a new user, follow these steps to create a Cash App account to start filing taxes with Cash App. If you already have a Cash App account, then you can skip this section.

How to Create Cash App Account For Cash App Taxes?

Step 1- Download Cash App

Step 2- Launch Cash App on your phone

Step 3- Enter your Email or Phone number

Step 4- Enter the security code that you have received

Step 5- Type in your Full Name

Step 6- Create a Cashtag

Step 7- Link your bank account

Step 8- Invite your friends to join Cash App (Optional)

That’s it, once you have created your Cash App account you are all set. Now you have to start filing your tax returns with Cash App. You can also use the same steps to create your Cash App account on a PC.

However, you must download Cash App on your mobile phone because Cash App requires you to scan a QR code with your mobile phone as a security feature to file taxes.

How To File Taxes With Cash App- Step by Step

After creating your Cash App account you can start the process of filing tax returns with Cash App. Cash App doesn’t charge a fee to file returns, it is completely free.

Follow these steps to start filing your first tax return with Cash App

1- Launch Cash App

2- Tap on the banking icon in the bottom left of the home screen

3- Tap on “Free Tax Filing”

4- Tap on “File Now” and Tap on Continue

5- Log in with your email address

6- Enter the confirmation code that you will receive on your email address

7- You will then be sent a code to your phone number, enter that as well

8- Then you will have to enter some basic information about yourself

9- Cash App will then require logging into your account on a computer

10- Scan the QR code with your phone on the computer.

You will then be logged in to your Cash App tax filing.

how to file taxes with Cash App

How to Set Up Your Profile For Cash App Taxes?

Once you have created your Cash App profile and have successfully logged in to your Cash App taxes account, Cash App will ask you to provide your basic information.

If you have used Credit Karma before, you do not have to create a new profile as Cash App has acquired all of the data from Credit Karma so your profile and information are already saved in the database.

To set up your profile for Cash App taxes you have to give all of the basic information that is required for tax filing. This information includes:

  • Information about your filing status, whether you are filing yourself or with your spouse
  • Do you have any dependents
  • Do you receive any Advance Child Tax payments
  • Have you worked in multiple states
  • Do you have any foreign income source

This is a great way to start your tax filing, it is a clutter-free and user-friendly interface, which makes it very simple for you to give all of your information easily.

You will also get small tips when you are filing the tax form by Cash App which really is helpful. Cash App will also require information regarding your work. If you have your own business or whether you work for someone else, and your income sources.

The last thing that you are asked while filing taxes with Cash App to complete your profile is your Expenses. These expenses include personal expenses, Medical expenses, or miscellaneous expenses.

What are the Pros and Cons Of Cash App Taxes?

Cash App taxes surely make filing tax returns much easier for individuals, and you can do it right from your home. Here are some pros and cons of filing Taxes with Cash App.

Pros of Filing Taxes With Cash App?

1- Cash App Taxes is absolutely free

2- It is simple to set up and easy to use

3- Helpful markers are there to help you out with useful information

4- Cash App Taxes is accurate and makes the filing of returns easier

5- It allows you to review the complete Tax draft before filing, it gives you a summary to review.

5- Free helpful articles related to tax filing

Cons of Filing Taxes with Cash App

1- You need to use it to log in from both your phone and computer

2- Confusing language e.g Cash App has listed stimulus credit under the family expenses

3- Cash App doesn’t hold your hand to guide you through the filing process. So you need to have some previous tax filing experience.

4- You need to have Cash App in order to use Cash App taxes

5- No proper Customer Support

6- Unavailability of professionals to get advice

Cash App Taxes Features

1- Free Filing

This is the topmost admired feature of Cash App Taxes, you can now file your taxes with Cash App for absolutely free. There is no charge on filing a tax return with Cash App on most of the taxes.

All you need is a Cash App account to start using Cash App to return your state and federal taxes for free. As the Cash App States:

Pay $0 to file, no matter your tax situation. No upsells, no hidden fees, no nonsense.

2- Simplicity

Cash App is known for its clean interface and simplicity. You will notice the same thing in Cash App taxes, Cluster’s free user interface with a clean design makes tax filing with Cash App so easy that you can do it within minutes.

3- Cash App Refunds

Cash App allows its users to file taxes and makes sure that they get the refund that they deserve. Cash App provides a double guarantee, you will get a maximum refund guarantee and calculation accuracy guarantee if you file your tax returns with Cash App.

Now, Maximum refund promises you that you will get the maximum possible refund on your taxes and if another service provides you a larger refund Cash App will reimburse you the difference up to $100.

Cash App also guarantees the calculation, if the IRS discovers any error in calculation, Cash App will reimburse you up to $1000.

4- Data Importing

If you have ever used any other platform to file your tax returns and now you are thinking to use Cash App, you get the benefit of importing your previous data to Cash App.

Cash App allows you to import your prior year’s tax returns from services such as Turbo Tax, H&R Block, and even Tax Act.

5- Free Audit Defence

This is another awesome feature that you will get if you are opting for Cash App taxes to file your tax returns. Cash App has partnered with Tax Protection plus in order to provide free audit defense to its users.

This means that if you are ever audited for your Tax returns, Cash App will provide you a free defense.

6- Refunds

As I have already mentioned, to use Cash App Taxes you need to first create a Cash App account, now this also has a benefit, you will get all of your tax refunds directly deposited to your Cash App account.

Cash App Taxes

Supported and Unsupported Tax Forms on Cash App

Cash App Taxes is free to use and definitely is a great platform, however, before switching to this platform you should first check which forms on Cash App are supported and which ones are not.

Cash App does not support all of the forms that are supported by other tax filing companies however there are more than 100 tax forms that are supported by Cash App, some of them are listed below

Supported Cash App Tax Forms

  • Filing your Federal tax return without filing a state tax return
  • W-2 Wages and Tax Statement
  • W-2G Certain Gambling Winnings
  • 1040 U.S. Individual Income Tax Return
  • 1040-SR U.S. Individual Income Tax Return for Seniors
  • 1040-V Payment Voucher
  • 1040X Amended U.S. Individual Income Tax Return
  • 1095-A Health Insurance Marketplace Statement
  • 1095-B Health Coverage
  • 1095-C Employer-Provided Health Insurance Offer and Coverage
  • 1098 Mortgage Interest Statement

These are just a few of the forms that Cash App supports, You Can check the complete list here.

Forms Not Supported by Cash App

While Cash App supports more than 100 forms, there are some forms that are not supported by Cash App, I have listed some of them below:

  • Schedule K-1 – Estate and Trust income
  • Clergy member tax filings (e.g., ministers or pastors)
  • Form 1116 – Foreign Tax Credit
  • Form 2555 – Foreign Earned Income
  • Form 8332 – Release of Claim to Exemption for Child by Custodial Parent

You can check the complete list of forms that are not supported on the Cash App here.

Which Tax Filing Situations Are Not Acceptable by Cash App?

There are some situations that are not supported by Cash App, for example, you can not file your federal taxes on Cash App without filing your state taxes first.

Cash App also doesn’t support multiple state filing and non-resident state filing. So if you were working in multiple states you might not be able to file taxes through Cash App.

If you have a foreign income source you are not allowed to file your tax returns through Cash App. Filing taxes for minors is also not supported by Cash App. You can view the list of situations that are not supported by Cash App here.

Who Can Use Cash App Taxes?

Cash App taxes is free to use and you can file your taxes with cash app in minutes, but there are some conditions that you must fulfill in order to use this service, following are the eligibility criteria for Cash App Taxes

  1. You must be 18+
  2. You have to be a US resident
  3. A verified Cash App account is required
  4. To file a state return you’ll need to have earned all the income in the state where you currently live.

Who is Cash App Taxes For?

Now that we know that Cash App Taxes is free to use, and has a great user interface, Cash App Taxes are not for everyone. You can file returns in 43 states and in Washington DC, you can not file the state return unless you file a federal return.

However, for those who live in states that do not require state tax returns you can just file a federal return. Cash App supports far more forms and situations than any other platform on their free program. So Cash App Taxes is a great choice for people who are on a budget.

So if you are on a budget and you are an experienced tax filer, Cash App is a great platform to be considered. You can easily import your prior tax data from other popular software.

With their free audit defense and maximum refunds guarantee, it is pretty hard to fault the service.

Who Should Not Use Cash App Taxes?

If you are new to filing the taxes, and you don’t have enough tax filing experience then this service is probably not for you. Cash App doesn’t have tax professionals that you can access for advice.

If you have a complex tax situation then Cash App also is not an ideal choice, While they do offer helo but there is no live chat or phone assistance. Cash App Taxes also don’t support multiple state returns, they don’t support foreign income, they don’t support health coverage tax credit and they don’t support only filing your state taxes without filing your federal taxes with them first.

Is Cash App Safe For Taxes?

Yes, it is completely safe to file your taxes with Cash App as Cash App is authorized by IRS to provide tax e-filing services to its customers. So all of your personal and business information on Cash App is completely safe.

Cash App uses 128-bit or higher to protect your data and complies with all of the Federal standards of security. Cash App also has regular third-party inspections to make sure that its security is foolproof.

It has set 2-factor authentication to ensure user protection.

Verdict

Cash App taxes is a great platform that supports hundreds of forms and multiple tax filing situations that you can take advantage of for free. You can use their other amazing offers like refund guarantee and audit defense too.

I hope this guide has given you the answer to how to file taxes with Cash App. If you have any questions regarding Cash App taxes you can ask in the comments section.

Cheer…

 

 

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