Global financial technology company Intuit is re-launching Credit Karma Tax, providing users with free federal tax filing and a $15 flat rate for state filing, no matter their tax complexity.
In a media release on Oct. 20, Intuit says users of Credit Karma Tax “get a self-guided DIY experience with real-time AI help that simplifies the process throughout, tackling the majority of the manual work that filing often requires. AI-powered tools support members every step of the way, from giving them a head start by centralizing key financial data, then optimizing tax outcomes as they file, and delivering refunds faster, to building long-term financial health long after they submit their taxes.”
Before being bought by Intuit in 2020, Credit Karma offered a free, online tax preparation service that launched right before the 2017 filing season. But when Intuit was set to acquire Credit Karma, the U.S. Department of Justice required it to divest Credit Karma Tax to Square Inc. (now known as Block Inc.) in order for the $7.1 billion transaction to proceed.
Recommended Articles
December 12, 2016
Credit Karma to Offer Free Online Tax Preparation
The DOJ said at the time that without this divestiture, the Intuit/Credit Karma transaction “would substantially lessen competition for digital do-it-yourself tax preparation products.” Intuit is famously known as the maker of TurboTax.
“Intuit’s TurboTax has long led the market for digital do-it-yourself tax filing services, but disruptive competition from Credit Karma Tax has brought substantial benefits to American taxpayers,” Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division said in a statement on Nov. 25, 2020. “Today’s divestiture to Square, another highly successful and disruptive fintech company, ensures that taxpayers will continue to both benefit from this competition and benefit from new innovative financial service offerings from both Intuit and Square.”
But Credit Karma Tax is back, operating as a separate tax preparation offering from TurboTax.
“Today Credit Karma is so much more than a place to check your credit score; it’s delivering true financial confidence, where daily money management helps build the life our members want whether that’s affording a place to call home for their family, or planning a dream trip,” Mark Notarainni, executive vice president and general manager of the Consumer Group at Intuit, said in a statement on Oct. 20. “By adding transparent, free Federal filing specifically tailored to our members, no matter how complex their tax situation, we are expanding Credit Karma’s role as their daily AI-powered financial assistant, helping them strategically spend, save, and grow their money in one place.”
With Credit Karma already centralizing users’ financial data, including income, credit, cash flow, and taxes, all in one place, they already have a head start when tax time arrives, Intuit says. Filers can skip manual data entry by snapping a photo or automatically importing forms directly from employers or financial institutions, including stock sales and financial and crypto transactions. Credit Karma Tax will pre-fill the return using its comprehensive document checklist and gathering tools.
According to Intuit, Credit Karma Tax provides:
- Tax prep and filing: Real-time help, gives clear explanations of return outcomes, and catches errors along the way using built-in AI tools like its expert chat function and, coming soon, Explanation and Error Agents.
- Review and submission: Credit Karma Tax runs thousands of accuracy checks prior to submission to ensure compliance with IRS and state requirements. All returns are backed by a 100% accuracy guarantee. If a calculation error causes an IRS or state penalty, Intuit says it will cover the penalty and interest.
- Completion and refund acceleration: Credit Karma transforms tax refund time into year-round financial planning through its suite of AI-powered financial tools. The Refund Agent turns refunds into actionable plans to pay down debt, save, or invest; the Debt Agent builds personalized paydown plans; and the Paycheck Agent allocates paychecks across bills, spending, and goals.
For this upcoming tax season, Credit Karma Tax provides accelerated access to funds:
- Up to five days early: Access federal tax refunds up to five days early for free with deposit into a Credit Karma Checking account
- Refund advance loan: With the upcoming launch of Credit Karma Tax’s tax year 2026 offering, apply for an up to $4,000 refund advance loan with $0 loan fees and 0% APR.
Credit Karma Tax is also offering the following paid add-ons:
- Expert Support Bundle: Includes audit defense, ID protection benefits, 1:1 live product support, and the ability to pay the $15 state fee using a tax refund. ($29 at launch; pricing subject to change)
- Expert Final Review: An option to add a final review by a tax expert to the Expert Support Bundle will also be available at launch. ($39 at launch; pricing subject to change)
Credit Karma Tax is available on the Credit Karma website and app. To become a member and create a free Credit Karma account visit creditkarma.com.
Sign in to get access to this free resource, and all of our whitepapers and reports.
Download this content today!
Register Now Already registered? Click here to Log In
