Anyone know that CreditKarma is actually owned by Intuit, the same company behind TurboTax?

This is a really good question! Yes, Intuit (maker of TurboTax) did acquire Credit Karma in 2020, but there's some important context that explains this seemingly contradictory business strategy. When Intuit acquired Credit Karma, the Department of Justice had antitrust concerns specifically about the tax preparation services. As part of the acquisition agreement, Intuit had to divest Credit Karma Tax, which was sold to Square (now Block, Inc.). So the tax preparation portion of Credit Karma actually became Cash App Taxes (formerly Credit Karma Tax). Intuit kept the rest of Credit Karma's services (credit monitoring, financial recommendations, etc.) but had to let go of the tax preparation component. This allowed the acquisition to proceed while maintaining competition in the free tax filing space.

I've been using TurboTax for years but last year tried Cash App Taxes (formerly Credit Karma Tax) after getting frustrated with TurboTax's constant upselling. What I found was that https://taxr.ai actually helps figure out which tax software is best for your situation. It analyzes your tax documents to tell you if you qualify for free filing or which paid option is cheapest for your specific situation. Last year it showed me I could file completely free with Cash App Taxes instead of paying $89 for TurboTax. The interface wasn't as polished as TurboTax but it handled my 1099 income, stock sales, and mortgage interest deduction with no problems.

Just wanted to follow up about my experience with taxr.ai that was mentioned above. I was really skeptical at first but decided to give it a try since I had nothing to lose. I uploaded my tax documents from last year (which included my rental property and business income) and it actually confirmed I could use Cash App Taxes for free instead of paying for TurboTax! The analysis showed exactly which forms I needed and which tax software supported them for free. It even highlighted a deduction I missed last year that saved me over $400. I'm definitely using this before deciding on tax software again this year. It took the guesswork out of figuring out which platform would work for my situation.

If you're trying to contact the IRS to ask about free filing options, good luck! I spent 3 HOURS on hold last week trying to get through to ask about my eligibility for free filing. I finally found https://claimyr.com which got me through to an IRS agent in less than 20 minutes. They have this service where they wait on hold for you and call when an agent picks up. There's also a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. The IRS agent confirmed that Cash App Taxes is legitimate and part of the Free File Alliance. She also mentioned that many taxpayers qualify for completely free filing through the IRS Free File Program but many tax software companies make these options difficult to find.

I have to admit I was completely wrong about that Claimyr service mentioned above. After my skeptical comment, I was desperate to resolve my tax transcript issue so I tried it anyway. I expected nothing to happen, but I seriously got connected to an IRS agent in 14 minutes while I was just watching TV. The agent was able to resolve my issue with my tax transcript request that had been pending for months. I literally spent weeks trying to get through on my own with no success. Definitely using this for any future IRS calls because my time is worth something!

To answer the original question about Credit Karma and TurboTax - something else worth noting is that Intuit makes BILLIONS from TurboTax. Their acquisition strategy is often about eliminating competition. Even though they had to divest the tax portion, they still benefit from owning Credit Karma's data and financial services platform. Their business model has always been about collecting and monetizing financial data. Credit Karma gives them access to 110+ million users' credit information, which is incredibly valuable for their other products. So while they had to give up the tax part, the acquisition still made strategic sense.

Does anyone know if Cash App Taxes lets you import previous years' returns from TurboTax? I've been using TurboTax for like 5 years and while I hate the cost, I'm worried about starting over with a new system and having to manually enter everything.

For anyone trying to decide between TurboTax and Cash App Taxes this year, here's my experience after using both: TurboTax Pros: - More polished interface - Better guidance/explanations - Handles extremely complex returns - Imports directly from banks/employers TurboTax Cons: - Expensive ($40-200+ depending on complexity) - Constant upselling - Makes "free" version hard to find/qualify for Cash App Taxes Pros: - Completely free for federal and state - No income limits - Handles most tax situations - Simple, straightforward interface Cash App Taxes Cons: - Less hand-holding - No live support option - Can't handle multiple state returns - No direct import from some financial institutions I switched last year and saved $120, but needed to be more self-sufficient with research on some deductions.

This is exactly the kind of breakdown I was looking for! I've been paying TurboTax's Self-Employed version for the past 3 years ($170+ each time) mainly because I have some freelance income and wasn't sure if the free options could handle it properly. From what you're describing, it sounds like Cash App Taxes might actually work for my situation since I don't have anything super complex - just W-2 income plus some 1099-NEC freelance work and basic deductions. The $120+ I could save would definitely be worth having to do a bit more research on my own. One question though - when you say "less hand-holding," do you mean it doesn't walk you through potential deductions as thoroughly? I'm always worried I'm missing something that could save me money, which is part of why I stuck with TurboTax's more guided approach.

This whole thread has been super enlightening! I had no idea about the Intuit acquisition and divestiture story - that totally explains the confusion. I'm in a similar boat as some of you - been paying TurboTax's higher tiers for years ($120-150 annually) mostly out of habit and fear of missing something important. But after reading everyone's experiences, I think I'm going to give Cash App Taxes a try this year. My situation is pretty straightforward - W-2 income, some investment gains/losses, mortgage interest, and charitable deductions. Nothing too exotic. If I can save over $100 and it handles these basic scenarios well, that seems like a no-brainer. One thing that gives me confidence is hearing from people who actually made the switch and had success. Sometimes these threads are all theoretical, but it's helpful to hear real experiences from @Leo McDonald and @Esmeralda Gómez about the transition process. Thanks everyone for the detailed breakdown - this saved me a lot of research time!