Money App Taxes Assessment: Execs, Cons, And Alternate options

For those who’re searching for free on-line tax software program, Money App Taxes is the solely service providing really free federal and state submitting to all customers.

Whereas it doesn’t have the entire bells and whistles of the premium-priced TurboTax, it could deal with the most typical conditions, together with investments and taxes for your online business or aspect hustle.

After a big enchancment final 12 months, Money App Taxes is up to date once more for adjustments to the tax code for 2024 taxes (filed in 2025).

The next Money App Taxes evaluate breaks down every little thing you should learn about doing all of your taxes with this no-cost platform. If you wish to see how Money App Taxes compares to different DIY tax prep choices, take a look at our high tax software program picks for 2025.

Sure, Money App Taxes is 100% free and does not have any paid tiers. If Money App Taxes helps your wants, which it does for most individuals, you received’t need to enter a bank card quantity or pay for any upsells.

Some tax filers, akin to those that labored in a number of states or earned international revenue, might not qualify to make use of Money App Taxes. It additionally doesn’t assist state tax filings in Montana, New Hampshire, Tennessee, or Washington for those who’re required to file there. Customers get free entry to the software program in alternate for downloading the Money App and making a Money App account.

Money App, previously referred to as Sq. Money, gives peer-to-peer cash transfers just like PayPal and Venmo. Block, Inc., the corporate behind the Sq. ecosystem of cost, payroll, and enterprise merchandise, owns Money App and Money App Taxes.

Truthfully, if you’ll be able to use Money App Taxes, you must. You possibly can’t beat free tax submitting!

Money App Taxes has been a part of Money App for a number of years (beforehand it was Credit score Karma Tax). It underwent some vital updates final 12 months and nonetheless makes it straightforward for most individuals to finish and file their taxes utterly free.

Money App Taxes nonetheless doesn’t work for filers needing to do taxes in a number of states, together with for those who moved to a brand new state mid-year. We additionally seen that it doesn’t deal with underpayment penalty calculations, which will be problematic for some filers, notably self-employed enterprise house owners and freelancers.

When you can’t import funding information, you possibly can import a W-2 if a qualifying associate payroll firm handles your W-2.

Updates for the 2025 tax season are normal throughout all tax submitting apps. These embrace new tax brackets, limits for deductions and credit, and different adjustments to the tax code, akin to expanded Okay-1 varieties for on-line sellers.

You’ll find the total rankings of the Greatest Tax Software program right here.

Money App Taxes makes tax submitting comparatively straightforward for many customers. It solely helps some W-2 imports however has first rate calculators and an excellent consumer interface. Money App Taxes is a best choice for those who principally have data from employment, financial institution curiosity, passive investments, or a small enterprise.

Nonetheless, energetic merchants (crypto or shares) should manually enter every commerce, which is tedious, and can lead to errors. It additionally doesn’t assist those that dwell in two states, work throughout state strains, or need to file in two states for another motive.

We additionally seen the product didn’t catch errors like over-contributions to self-employed 401(okay) plans, which led to challenges for a member of our group in precisely getting into and submitting their tax return.

Money App Taxes gives free tax submitting for most individuals, however the software program is extra strong than its price ticket implies. These are a number of of the product’s greatest options.

Most on-line tax software program gives a free tier that’s extremely restricted, so most individuals are compelled to improve to a paid tier. Not so with Money App Taxes. It gives all of its options without cost. Customers solely must obtain the Money App to entry the strong software program. It truly is free.

Filers full a brief questionnaire firstly of the submitting course of. This streamlines the method so customers don’t need to open or evaluate data that isn’t related to them.

Money App Taxes takes safety very critically. It requires customers to make use of multi-factor authentication. A second type of authentication is a greatest observe that few different firms provide or require. You should use a code from a textual content message or electronic mail when logging in.

Money App Taxes gives free Audit Assist (by a 3rd get together) for anybody who recordsdata utilizing Money App Taxes. The assist contains organizing tax paperwork, writing to the IRS, and attending hearings related to the audit.

Money App Taxes is appropriate for the everyday tax submitting state of affairs however has a number of drawbacks, particularly for these searching for premium options. You possibly can examine Money App Assist to see what conditions they do not assist.

Restricted Kind Imports

Money App Taxes solely helps restricted W-2 imports. In case your employer or its payroll supplier helps the function, you possibly can obtain your revenue particulars proper into Money App taxes with a number of clicks. In any other case, you’ll need to kind it in manually. That’s not an enormous deal for a easy W-2, however it’s a problem for different tax varieties.

They do not permit customers to import 1099 varieties from banks and brokerages. This can be a dealbreaker, particularly for crypto or inventory merchants who don’t wish to enter each transaction manually.

Money App Taxes’ new navigation depends on personalized menu navigation. A brief questionnaire simplifies the software program so customers aren’t overwhelmed by irrelevant alternatives. Nonetheless, customers should manually click on into every part to enter their data. Customers might by chance skip sure sections in the event that they don’t understand they apply to their tax submitting.

Money App Taxes gives free Federal and State submitting. Customers don’t need to pay for something, together with free Audit Protection.

Money App Taxes is a surprisingly strong software program, particularly when it is in comparison with discount and mid-tier software program. This is a fast take a look at the way it compares to FreeTax USA, TaxAct, and TaxSlayer.

Money App Taxes considerably improved entry to its product final 12 months.

Customers can merely file their taxes from their telephone or laptop at money.app/taxes. When logging in for the primary time this 12 months, you’ll need to enter a brand new password for Money App Taxes and authenticate your login utilizing a code despatched to you through textual content message.

You’re required to create a Money App account with a purpose to use Money App Taxes.

When utilizing utterly free tax software program, you must count on to make a number of compromises. Within the case of Money App Taxes, a kind of compromises is proscribed assist choices.

Money App does have a brand new devoted Assist Heart for Money App Taxes. However not like premium tax software program firms, you will not be capable of improve to tiers that embrace entry to tax execs. 

If in case you have a technical drawback with the app, you possibly can name the corporate’s primary customer support at 1-800-969-1940. However in order for you the power to ask tax-related inquiries to consultants, you will possible wish to select a distinct tax software program.

Utilizing any tax software program entails sure dangers, however Money App takes safety extra critically than most tax firms. It leverages its expertise as a banking/brokerage firm to guard consumer data.

To maintain your information protected, use distinctive passwords for each website you employ, significantly monetary ones like your banking and tax apps. For those who’re doing all of your taxes on a public WiFi community, investing in a VPN can higher safe your data.

Why Ought to You Belief Us?

The Faculty Investor group has spent years reviewing the entire high tax submitting choices, and our group has private expertise with nearly all of tax software program instruments. I personally have been the lead tax software program reviewer since 2022 and have in contrast a lot of the main firms within the market.

Our editor-in-chief Robert Farrington has been making an attempt and testing tax software program instruments since 2011, and has examined and tried virtually each tax submitting product. Moreover, our group has created opinions and video walk-throughs of the entire main tax preparation firms which you will discover on our YouTube channel.

We’re tax DIYers and need a whole lot, similar to you. We work arduous to supply knowledgeable and sincere opinions on each product we take a look at.

How Was This Product Examined?

In our authentic assessments, we went by Money App Taxes and accomplished a real-life tax return that included W2 revenue, self-employment revenue, rental property revenue, and funding revenue. We tried to enter each piece of information and use each function out there. We then in contrast the outcome to all the opposite merchandise we have examined, in addition to a tax return ready by a tax skilled.

This 12 months, we went again by and re-checked all of the options we initially examined and any new options. We additionally validated the pricing choices.

Money App Taxes gives a free product that’s extra strong than most paid merchandise in the marketplace right this moment. It doesn’t rival premium providers (like TurboTax, H&R Block, and TaxSlayer), nevertheless it’s serviceable for many filers who don’t actively commerce shares or crypto.

Given the convenience of use, we’re recommending Money App Taxes as a high free tax submitting possibility for this 12 months. In case your state of affairs qualifies to make use of Money App Taxes, you must use it and save on tax preparation prices.

For those who’re nonetheless undecided, take a look at our record of Money App Taxes options.

Get began with Money App Taxes right here >>

Let’s reply a number of of the most typical questions individuals ask about Money App Taxes:

Can Money App Taxes assist me file my crypto investments?

For those who traded one or two tokens, you may wish to use Money App Taxes to file your taxes. Determining the associated fee foundation on these trades received’t be too tough. Nonetheless, energetic merchants should manually enter dozens or a whole bunch of transactions. That is too time-consuming to be worthwhile. Energetic merchants ought to contemplate TaxAct or TurboTax Premier to cut back the time spent submitting.

Can Money App Taxes assist me with state submitting in a number of states?

No. Money App Taxes will help you file your Federal taxes, nevertheless it doesn’t assist multi-state submitting. Tax filers who filed in a number of states ought to contemplate another software program like Free Tax USA.

Do I’ve to pay if I’ve a aspect hustle?

Money App Taxes is free for all customers, together with self-employed enterprise house owners and aspect hustlers.

Does Money App Taxes provide refund advance loans?

Money App Taxes doesn’t provide refund advance loans, however filers can get their returns six days earlier in the event that they deposit to a Money App account. That is an FDIC-insured account.

Does Money App Taxes provide any offers on refunds?

Money App Taxes doesn’t provide any offers or incentives related to refunds.