You’ve probably heard of Credit Karma. They’re well-known for their credit-monitoring service which provides your TransUnion and Equifax credit scores for free.
In 2016, Credit Karma expanded into the tax services realm. Like their other offerings, Credit Karma Tax is free – for both federal and state tax returns. Keep reading for everything you need to know about Credit Karma Tax.
See the best tax services here.
Credit Karma Tax Features
Credit Karma Tax provides one DIY tax filing product for federal and state returns. It can handle most IRS forms and schedules, and offers online filing in 40 states and the District of Columbia. Here’s what we like about Credit Karma Tax:
Smart File. Credit Karma Tax will only show you the tax forms you need for your situation, streamlining the filing process. The software will also grab your W-2 information when you import your data from last year’s return (even if you used TurboTax, H&R Block or TaxAct) or when you upload a photo of your W-2.
Audit Defense. Credit Karma Tax provides free audit defense. In the event you get audited, the service will help you communicate and respond to the IRS.
Maximum Refund Guarantee. If you receive a larger federal tax refund or owe less in federal taxes when you file with another online tax prep service, Credit Karma Tax will make up the difference, for up to $100.
Accurate Calculations Guarantee. If you get hit with penalties or interest due to a calculation error, Credit Karma Tax will repay you, for up to $1,000.
Customer Service. Credit Karma Tax offers 24/7 chat support, albeit during tax season only. During other times of the year, you can contact the support team by email.
Credit Karma Tax Pricing
Credit Karma Tax is 100% free, even if you’re taking deductions or credits. You can use the software to file your federal and state returns without getting bombarded with upsells or hidden fees. Bear in mind, though, Credit Karma Tax does not support every tax situation in 2021, such as multi-state tax prep and complex investments.
Credit Karma Tax Limitations
Before you start the filing process with Credit Karma Tax, keep the following in mind:
- Credit Karma Tax is not available in all states. Check here for availability.
- Credit Karma Tax is missing some forms.
- Credit Karma Tax does not provide professional specialized support.
That said, Credit Karma Tax does support more tax situations than the average free tax filing services (like income from rental property, student loan interest, and income made as an independent contractor). If you have a simple return and you’re comfortable filing online yourself, then you probably won’t need support from a tax professional.
Bottom Line
Credit Karma Tax is completely free, and they support most IRS forms and schedules for federal and state returns. Overall, they offer more features than other free tax software products, but don’t expect as much support as paid tax prep services.
For those with more complex tax returns, you’ll want to go for a provider with the option to consult a tax pro, like TaxSlayer Premium.
READ MORE: SEE THE BEST BANK BONUSES HERE AND THE BEST INVESTING BONUSES HERE.
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