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

For those who’re in search of 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 possibly deal with the most typical conditions, together with investments and taxes for your small business or facet hustle.

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

The next Money App Taxes evaluation breaks down every thing that you must find out 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, try our prime 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, similar to those that labored in a number of states or earned international revenue, could not qualify to make use of Money App Taxes. It additionally doesn’t help state tax filings in Montana, New Hampshire, Tennessee, or Washington in the event you’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 often known as Sq. Money, affords peer-to-peer cash transfers much 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.

Actually, if you’ll be able to use Money App Taxes, you need to. You may’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 important updates final yr and nonetheless makes it simple for most individuals to finish and file their taxes fully free.

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

Whilst you can’t import funding information, you may import a W-2 if a qualifying accomplice payroll firm handles your W-2.

Updates for the 2025 tax season are commonplace throughout all tax submitting apps. These embody new tax brackets, limits for deductions and credit, and different modifications to the tax code, similar to expanded Ok-1 types for on-line sellers.

You will discover the complete rankings of the Greatest Tax Software program right here.

Money App Taxes makes tax submitting comparatively simple for many customers. It solely helps some W-2 imports however has first rate calculators and a very good consumer interface. Money App Taxes is a best choice in the event you largely have info 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 help those that stay in two states, work throughout state traces, or need to file in two states for every other purpose.

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

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

Most on-line tax software program affords 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 affords all of its options free of charge. Customers solely must obtain the Money App to entry the sturdy software program. It truly is free.

Filers full a brief questionnaire in the beginning of the submitting course of. This streamlines the method so customers don’t need to open or evaluation info that isn’t related to them.

Money App Taxes takes safety very severely. 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 utilize a code from a textual content message or electronic mail when logging in.

Money App Taxes supplies free Audit Assist (via a 3rd social gathering) for anybody who recordsdata utilizing Money App Taxes. The help 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 looking for premium options. You may test Money App Assist to see what conditions they do not help.

Restricted Kind Imports

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

They do not enable customers to import 1099 types 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 picks. Nonetheless, customers should manually click on into every part to enter their info. Customers could unintentionally skip sure sections in the event that they don’t understand they apply to their tax submitting.

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

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

Money App Taxes considerably improved entry to its product final yr.

Customers can merely file their taxes from their cellphone or pc at money.app/taxes. When logging in for the primary time this yr, 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 view to use Money App Taxes.

When utilizing fully free tax software program, you need to count on to make a number of compromises. Within the case of Money App Taxes, a kind of compromises is restricted help 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 have the ability to improve to tiers that embody entry to tax execs. 

In case you have a technical drawback with the app, you may name the corporate’s foremost customer support at 1-800-969-1940. However if you need the power to ask tax-related inquiries to consultants, you will doubtless wish to select a distinct tax software program.

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

To maintain your information protected, use distinctive passwords for each web site you utilize, 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 info.

Why Ought to You Belief Us?

The Faculty Investor workforce has spent years reviewing the entire prime tax submitting choices, and our workforce has private expertise with the vast majority 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 workforce has created critiques 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 checks, we went via 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 yr, we went again via and re-checked all of the options we initially examined and any new options. We additionally validated the pricing choices.

Money App Taxes affords a free product that’s extra sturdy than most paid merchandise available on the market right this moment. It doesn’t rival premium companies (like TurboTax, H&R Block, and TaxSlayer), but it surely’s serviceable for many filers who don’t actively commerce shares or crypto.

Given the benefit of use, we’re recommending Money App Taxes as a prime free tax submitting choice for this yr. In case your scenario qualifies to make use of Money App Taxes, you need to use it and save on tax preparation prices.

For those who’re nonetheless undecided, try our record of Money App Taxes alternate 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 troublesome. Nonetheless, energetic merchants should manually enter dozens or tons of of transactions. That is too time-consuming to be worthwhile. Lively merchants ought to take into account 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 might help you file your Federal taxes, but it surely doesn’t help multi-state submitting. Tax filers who filed in a number of states ought to take into account another software program like Free Tax USA.

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

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