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Cash App Taxes Review 2023

8.4 good ratings
Cash App Taxes
Updated On 25 April, 2023

Cash App Taxes refer to the taxes that users of Cash App, a mobile payment service offered by Square Inc., may be required to pay on transactions they conduct using the app. As with any financial transaction, using Cash App may have tax implications, and users are responsible for understanding and complying with their tax obligations.

Cash App transactions can generate several types of taxable events, including income, capital gains, and sales taxes. For example, if a user receives payment through Cash App for providing goods or services, that payment may be considered taxable income by the IRS and need to be reported on their tax return. Additionally, if a user buys and sells cryptocurrencies on Cash App, any gains made on those transactions may be subject to capital gains taxes.

Square Inc. provides users with a 1099-K form if they receive more than $20,000 in gross payments and conduct more than 200 transactions in a calendar year. This form is used to report the user’s payment activity to the IRS, and users must report this information on their tax return. However, even if a user doesn’t receive a 1099-K form, they are still responsible for reporting any taxable transactions on their tax return.

It’s important for Cash App users to keep accurate records of their transactions and consult with a tax professional to understand their tax obligations. Failure to properly report taxable transactions can result in penalties and interest charges.

Read our other in-depth tax act review post to know about how cash app is different from tax act.

Pros

  • Helps users comply with tax obligations
  • Provides a 1099-K form for users who meet the threshold
  • Allows users to keep track of their transactions
  • Facilitates easy and quick payments
  • Offers users the ability to buy and sell cryptocurrencies
  • Has a user-friendly interface
  • Offers cashback rewards for using the app
  • Supports instant deposits and withdrawals
  • Provides a debit card for easy access to funds
  • Offers the ability to send money internationally

Cons

  • Users are responsible for accurately reporting taxable transactions
  • Tax obligations can be complex and difficult to understand
  • Users may face penalties for failing to report taxable transactions
  • The 1099-K threshold may be too low for some users
  • Cryptocurrency transactions can be subject to volatile market conditions
  • Users may be charged fees for certain transactions
  • International money transfers may be subject to additional fees
  • Users may be vulnerable to scams or fraud on the platform
  • Cash App may not be available in all countries or regions
  • Users may face limited customer support options.

Performance at Glance

Specifications

Rating at Glance

Our Verdict

Ease of Use

Simplify your tax preparation with Cash App Taxes' user-friendly interface.

Support

Get the tax support you need with Cash App Taxes' licensed professionals and customer support channels.

Features

Maximize your tax returns with Cash App Taxes' comprehensive features, including import options and audit support.

Plans & Pricing

Save money on tax preparation with Cash App Taxes' affordable pricing options for both simple and complex tax situations.

Cash App Taxes has an intuitive and easy-to-use interface that allows users to easily navigate through the platform and complete their tax preparation and filing process.

Support is an important aspect of any tax prep software, and Cash App Taxes offers various channels for customer support, including phone, email, online chat, and in-person branches. Additionally, users have access to licensed tax professionals who can provide expert advice and support for more complex tax situations.

Features offered by Cash App Taxes include the ability to import W-2 and 1099 forms, a comprehensive navigational outline, audit support, and support for self-employment income. 

Features of Cash App Taxes Software

Cash App Taxes is a user-friendly tax preparation and filing software that offers a range of features to make the tax process easier and more convenient for individuals and businesses. From importing W-2 and 1099 forms to providing comprehensive navigational outlines and audit support, Cash App Taxes offers a variety of tools to help users complete their tax preparation and filing efficiently and accurately. 

Features

Cash App Taxes

Imports Competitor’s Returns

Yes

All Major IRS forms & schedules

Yes

Comprehensive Navigational Outline

No

Chat Help

Yes

Phone Supports for Tax Topics

No

Hyperlinked Help In Interview

Yes

Context Sensitive Help

Yes

Searchable Help Database

Yes

Mobile Access

Yes

Federal Cost

Free

State Cost

Free

Audit Support

Yes

Printable Tax Return

Yes

Tax Extension

Yes

W-2 Import

Yes

Brokerage Integrations

No

Self-Employment Income

Yes

  • Imports Competitor’s Returns:

This feature allows users to import their tax return information from other tax preparation software or services into Cash App, making the transition to using Cash App for tax filing easier and more seamless.

  • All Major IRS Forms & Schedules:

Cash App provides access to all of the major IRS forms and schedules required for tax filing, ensuring that users have access to the necessary documentation to accurately report their income and expenses.

  • Comprehensive Navigational Outline:

The platform provides a clear and organized navigational outline that guides users through the tax filing process step by step, making it easier for users to understand and follow the process.

  • Chat Help:

Cash App offers chat help support, allowing users to ask questions and receive assistance from customer support representatives in real-time via a chat window.

  • Phone Supports for Tax Topics:

Users can access phone support for assistance with tax-related topics, allowing them to speak directly with a customer support representative for more personalized assistance.

  • Hyperlinked Help In Interview:

This feature provides hyperlinked help within the tax interview, providing users with additional information and guidance as they navigate through the various sections of the tax filing process.

  • Context Sensitive Help:

Cash App’s help system is context-sensitive, meaning that the platform provides relevant and specific help information based on the user’s current location in the tax filing process.

  • Searchable Help Database:

Users can access a searchable help database that provides answers to commonly asked questions and detailed explanations of tax-related topics.

  • Mobile Access:

Cash App is accessible via a mobile app, allowing users to prepare and file their taxes from their mobile devices, making it convenient and easy to use.

  • Federal Cost:

The cost of preparing and filing federal taxes using Cash App is clearly stated and transparent, allowing users to understand the fees associated with using the platform.

  • State Cost:

Similarly, Cash App also provides transparent and clear pricing for state tax filings, allowing users to understand the costs associated with filing their state taxes.

  • Audit Support:

In the event of an audit, Cash App offers support to users to help them navigate the audit process and respond to requests for additional information.

  • Printable Tax Return:

Users can easily print a copy of their tax return for their records or to submit to other parties.

  • Tax Extension:

Cash App offers users the ability to request an extension on their tax filing deadline, providing additional time to prepare and file their taxes.

  • W-2 Import:

This feature allows users to import their W-2 form directly into Cash App, simplifying the process of entering income and other tax-related information.

  • Brokerage Integrations:

Cash App integrates with brokerage accounts, allowing users to easily import investment-related income and expenses into their tax return.

  • Self-Employment Income:

Cash App provides support for users with self-employment income, including the ability to track expenses and file Schedule C for self-employment income reporting.

How does Cash App Taxes work? 

Cash App Taxes is a tax preparation and filing service offered by the Cash App mobile application. The platform is designed to make it easy for users to report their taxable income, calculate their taxes owed, and file their federal and state tax returns.

  • Cash App Taxes works by guiding users through a series of questions to collect the necessary information to prepare and file their taxes.
  • Users can import their previous year’s tax returns from other tax software platforms, allowing them to seamlessly transition to Cash App Taxes without starting from scratch.
  • Users can import their W-2 and 1099 forms, and the platform automatically enters the information into the correct tax forms.
  • Cash App Taxes offers a comprehensive navigational outline that helps users easily find the sections they need to complete their tax returns.
  • The platform provides hyperlinked help and context-sensitive help to assist users in completing their tax returns accurately.
  • Once users have completed their tax returns, they can file them electronically or print and mail them.
  • Cash App Taxes offers support for both federal and state taxes, with options to file state taxes for an additional fee.
  • The platform also offers audit support in case users are audited by the IRS.
  • Users can also apply for a tax extension if they need more time to prepare and file their tax returns.

Cash App Taxes Customer Service & Support

The platform offers several channels for customer service and support, including phone support, email support, help forums, online chat, and access to licensed tax professionals.

Support Option

Availability

Phone Support

Yes

Email Support

Yes

Help Forums

No

Online Chat

No

In-Person Branches

No

Access to licensed Tax Pros

Yes

  • Phone Support:

Users can call the Cash App Taxes customer service phone line to speak with a representative for assistance with tax-related questions or issues.

  • Email Support:

Users can also email the Cash App Taxes support team for assistance. This is a good option for non-urgent inquiries or issues.

  • Help Forums:

Cash App Taxes has a community forum where users can ask questions, share tips, and get help from other users.

  • Online Chat:

It offers online chat support through the app or website. This is a convenient way for users to get real-time assistance with their tax questions or issues.

  • In-Person Branches:

Cash App Taxes has partnered with H&R Block to offer users in-person support at H&R Block locations. Users can make an appointment or drop in to get help from a licensed tax professional.

  • Access to licensed Tax Pros:

Cash App Taxes offers users access to licensed tax professionals for a fee. Users can choose to connect with a tax pro for advice, review of their tax return, or other assistance.

Cash App Taxes provides a variety of customer service and support options to help users with their tax-related questions and issues. The availability of both online and in-person support makes it convenient for users to get the help they need.

What are various Cash App Taxes filing options? 

Cash App Taxes offers several tax filing options to meet the needs of different users. These options include:

  • Basic Tax Filing:

Suitable for users with simple tax returns that require only a Form 1040 and no additional schedules or forms. The fee for basic tax filing is $30.

  • Deluxe Tax Filing:

Made for users with more complex tax returns that require additional schedules or forms. The fee for deluxe tax filing varies depending on the complexity of the tax return.

  • State Tax Filing:

Offers state tax filing in select states. The cost of state tax filing varies depending on the state and the complexity of the tax return.

  • Tax Extension:

Users who need more time to prepare and file their taxes can request a tax extension through Cash App Taxes. This option provides an additional six months to file the tax return, but it does not extend the deadline for paying any taxes owed.

  • Brokerage Integrations:

Cash App Taxes offers integrations with select brokerage accounts, making it easy for users to import their tax documents and data directly into the app.

Whether you have a simple tax return or a more complex one, there is an option that can help you prepare and file your taxes easily and accurately.

How do I log on to cash app taxes? 

To log on to Cash App Taxes, you can follow these steps:

  • Open the Cash App on your mobile device or visit the Cash App Taxes website.
  • If you’re using the mobile app, tap on the “Taxes” tab at the bottom of the screen. If you’re using the website, click on the “Taxes” button in the top menu.
  • If you already have a Cash App account, log in using your Cash App login credentials. If you don’t have a Cash App account yet, you’ll need to sign up for one first.
  • Once you’re logged in, you can start using the Cash App Taxes service to prepare and file your taxes.

If you have any trouble logging in or using the service, you can contact Cash App Taxes customer service for assistance. The app offer phone, email, and online chat support to help users with any questions or issues they may have.

Is Cash App Taxes right for you and your business?

Whether Cash App Taxes is right for you and your business depends on several factors. Here are some things to consider:

  • Complexity of your tax situation:

If you have a simple tax situation, such as only needing to file a Form 1040, Cash App Taxes may be a good fit for you. However, if you have a more complex tax situation that requires additional schedules or forms, you may need to consider other tax software options.

  • Cost:

Cash App Taxes is competitively priced, but you should consider whether the cost is worth it for your needs. If you have a very simple tax situation, you may be able to find a cheaper option. On the other hand, if you need more advanced features, you may be willing to pay more for a more robust tax software.

  • Support:

The App offers several channels for customer service and support, including phone support, email support, online chat, and in-person support at H&R Block locations. If you value good customer support, this may be a good option for you.

  • Integration with other tools:

This comes with integrations with select brokerage accounts, which can make it easier to import your tax documents and data directly into the app. If you use one of these brokerages, this may be a convenient option for you.

If you have a simple tax situation, value good customer support, and are looking for a competitively priced tax software option, Cash App Taxes may be a good fit for you and your business. However, if you have a more complex tax situation or need more advanced features, you may need to consider other options.

Top Cash App Taxes Alternatives

When choosing a tax software option, it’s important to consider your specific tax situation, as well as your budget and preferences.

Cash App Taxes

Free Tax USA

Tax Act

Stimulus Credit

Free

Free

Free+

Unemployment Income

Free

Free

Free+

Student Loan Interest

Free

Free

Deluxe+

Import Last Year’s Taxes

Free

Free

Free+

Multiple W2s

Free

Free

Free+

Child Tax Credit

Free

Free

Free+

Retirement Contributions

Free

Free

Free+

Interest Income

Free

Free

Deluxe+

Capital Gains

Free

Free

Premier+

Audit Support

Free

Deluxe ($7.99)

Not offered

  • Free Tax USA:

Free Tax USA is an online tax preparation and filing service that offers both free and paid versions of its software. The free version is suitable for simple tax returns, while the paid versions offer more advanced features for more complex tax situations. Free Tax USA is known for its low cost and easy-to-use software, but it may not be as feature-rich as other tax software options.

  • Tax Act:

Tax Act is another popular tax software option that offers both free and paid versions of its software. The free version is suitable for simple tax returns, while the paid versions offer more advanced features for more complex tax situations. Tax Act is known for its low cost and user-friendly interface, but it may not offer as many features as other tax software options.

Cash App Taxes offers a simple, easy-to-use interface, good customer support, and integration with select brokerage accounts. Free Tax USA and Tax Act offer similar features, but may not have as many advanced features as Cash App Taxes. However, Free Tax USA and Tax Act are both known for their low cost and user-friendly interfaces.

Conclusion 

Cash App Taxes is an online tax preparation and filing software that offers a simple and user-friendly interface for individuals and businesses to prepare and file their federal and state taxes. With its affordable pricing, mobile app, and customer support channels, Cash App Taxes is a reliable and convenient option for tax preparation and filing. 

While Cash App Taxes is a legitimate and trustworthy tax preparation and filing software, it may not be the best fit for everyone. Individuals and businesses with complex tax situations may benefit from alternative tax software options that offer more specialized features and support. Additionally, those who prefer in-person support or more comprehensive tax advice may want to consider working with a tax professional or accountant.

Ultimately, the key to finding the right tax software solution is to evaluate your specific needs and preferences. By doing so, you can make an informed decision and choose a tax software that will help you streamline the tax preparation and filing process while ensuring compliance with federal and state tax regulations.

Frequently Asked Questions

  • Is Cash App Taxes legit?

Yes, Cash App Taxes is a legitimate service offered by Cash App to help users with tax reporting related to their Cash App account.

  • Can you get a W2 from Cash App?

No, Cash App does not issue W2 forms. W2 forms are typically issued by an employer to their employees. Cash App is a payment service and not an employer.

  • Can Cash App Taxes help me file my crypto investments?

Cash App has collaborated with TaxBit to streamline the process of reporting bitcoin transactions for U.S. individual income tax filing. With TaxBit, you can create an IRS Form 8949 to accurately calculate and report capital gains and losses related to your bitcoin transactions.

  • Does Cash App Taxes offer a mobile app?

If you’re in a hurry and need to file your taxes while on-the-go, you can use Cash App Taxes to prepare your federal and some state tax returns via mobile. With the Cash App Taxes app, you can itemize deductions and complete your 1040 form on your smartphone.

  • Does Cash App provide tax advice or services?

Cash App does not provide tax advice or services. However, they do offer Cash App Taxes, which is a service to help users with tax reporting related to their Cash App account.

  • Can I use Cash App to file my taxes?

Yes, you can use Cash App Taxes to file both your state and federal tax returns.

Cash App Taxes

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