![]() ![]() Through the end of the 2020 tax filing season, which ended on October 15, 2021, the Credit Karma Tax experience remained the same for users. Can You Still Access Credit Karma Tax Returns? But creating a digital-do-it-yourself tax product from scratch-let alone one that can keep up with the complicated and ever-evolving patchwork of federal and state tax laws-is no easy feat. The acquisition also provides Square with a platform to build a more robust tax service-perhaps a paid service aimed at its small business customers-in the future.Īccording to IBISWorld, tax preparation services is an $11.3 billion industry in the U.S. According to Square’s Q3 2020 Shareholder Letter, customers who use two or more products generate three to four times more profit for the company than customers who only use Cash App’s peer-to-peer payments. The acquisition allows Cash App to build a suite of personal financial tools to offer consumers.Ĭash App already provides a peer-to-peer payment platform, bank accounts, debit cards, short-term loans and fractional investing in stocks and Bitcoin.Īdding tax preparation services to Cash App’s existing suite of services provides another way to acquire new users and helps the company generate more profit per user. ![]() Why Does Cash App Want to Offer Free Tax Filing? Square plans to integrate CKT into its Cash App platform, giving Cash App the ability to offer free tax filing services. As Intuit already controls roughly 67% of the DIY tax preparation market, buying CKT would push them closer to that threshold.Īs part of a proposed settlement with the DOJ, CKT entered into a deal with Square, Inc. However, the DOJ generally views any merger that gives a company control of more than 70% of the market as a potential monopoly. That accounts for a small fraction of the 34 million consumers who use software to prepare and file tax returns each year. In 2019, around 1.5 million people used Credit Karma Tax to file their taxes. According to the suit, unless Credit Karma divested its tax business, the acquisition would eliminate competition and likely result in higher prices, lower quality products and services and less consumer choice for digital-do-it-yourself tax preparation. Justice Department (DOJ) effectively said, “Not so fast,” when it filed a civil antitrust lawsuit in U.S. The purchase allowed Intuit, maker of the DIY tax software giant TurboTax, to further expand into consumer finance and access financial data on Credit Karma’s 100 million members in the U.S., U.K. ![]() said it would buy privately held Credit Karma. On intuit's Website Why Did Credit Karma Tax Become Cash App Taxes?įirst, a little history. ![]()
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