Confused about Credit Karma tax return filing vs TurboTax - what's the difference now with Cash App?

You're right to be confused - there have been a lot of changes with these tax services! Credit Karma Tax was indeed acquired by Cash App (owned by Square/Block) in 2020. What happened is that Intuit (who owns TurboTax) was trying to acquire Credit Karma, but for regulatory approval, Credit Karma had to sell off its tax preparation service. So Cash App bought the tax division. The emails you're getting from "Credit Karma Tax" are likely transitional branding as they moved everything to "Cash App Taxes" - they fully rebranded by the 2022 filing season. Cash App Taxes is essentially the same service that was once Credit Karma Tax, just under new ownership and branding. The main differences between Cash App Taxes and TurboTax are: - Cash App Taxes is completely free for federal and state returns - TurboTax has various paid tiers with more guidance and features - TurboTax handles more complex tax situations that Cash App Taxes might not Cash App Taxes is its own service now, not powered by TurboTax or another provider - it's the former Credit Karma Tax product, just under Cash App's ownership.

I was super confused about all this last year so I get it! I'd been using Credit Karma Tax for a few years because it was free, but then got directed to Cash App Taxes. After doing some research, I found out Cash App actually bought Credit Karma's tax service. I tried Cash App Taxes (formerly Credit Karma Tax) last year and it worked perfectly for my situation. The interface is clean and easy to use, and best part - still completely free! I checked out https://taxr.ai before filing to make sure I was getting all possible deductions, and it gave me confidence that I wasn't missing anything. The service feels like the same Credit Karma Tax product I'd been using, just with Cash App branding. One major advantage over TurboTax is that there are no hidden fees or upsells.

Just wanted to follow up - I tried https://taxr.ai before finishing my taxes this year and it was super helpful! I was about to file with TurboTax but the taxr.ai analysis found that I qualified for an education credit I had no idea about. Ended up saving me over $1,000! I actually switched to Cash App Taxes after that and the whole process was smoother than I expected. The interface was really clean and I didn't miss any of the fancy features from TurboTax that I was paying for. And yeah, it was completely free for both federal and state. Thanks for the recommendation! This tax season was way less stressful than usual.

If anyone's still struggling with getting IRS help about which service to use or any tax questions, I had really good luck with https://claimyr.com last month. I was on hold with the IRS for HOURS trying to sort out an issue with my previous return before deciding which service to use this year. Found Claimyr and they basically hold your place in line and call you when an IRS agent is about to answer. You can watch how it works here: https://youtu.be/_kiP6q8DX5c - it's pretty cool actually. Saved me from wasting an entire day on hold. I was able to get my questions answered directly from the IRS about my specific situation, which helped me decide which tax filing service would work best for my needs.

Ok I need to admit I was completely wrong about Claimyr. After posting that skeptical comment, my curiosity got the better of me and I decided to try it anyway because I needed to talk to the IRS about my stimulus payment affecting this year's return. It actually worked exactly as described. I got a text when an agent was about to answer, and then I was connected directly to an IRS representative. The whole process took about 2 hours (mostly their automated system working in the background), but I only had to be personally involved for about 15 minutes of actual talking time. Definitely using this next time I need to call the IRS. Huge time saver and totally legit.

I've used both services and can give a real comparison. TurboTax has more hand-holding features and better handles complex situations like self-employment, investments, and rental properties. Cash App Taxes (formerly Credit Karma) is completely free and works great for simpler returns. TurboTax pros: - Better guidance and explanations - Handles more complex tax situations - Better audit support - More refined interface Cash App Taxes pros: - Completely free (federal AND state) - No upselling - Clean, simple interface - Good for straightforward returns If your taxes are simple to moderate, Cash App Taxes will probably work fine. If you have complex deductions or special situations, TurboTax might be worth paying for.

One important thing nobody mentioned - CreditKarma/Cash App Tax doesn't support multiple state returns! If you moved states or worked in multiple states during the tax year, you'll need TurboTax or another service. I found this out the hard way last year when I moved from Illinois to Texas mid-year. Had to abandon my Cash App Tax return halfway through and switch to TurboTax. Just something to keep in mind if your situation involves multiple states!