Cash App Taxes: Everything You Need to Know for Your Tax Filing Needs

Let’s be honest—filing taxes is stressful and, more often than not, expensive. But Cash App Taxes? It’s a free tax software that a surprising number of people overlook. You can file both your federal and state returns without paying a dime, no matter how complicated things get.

Cash App Taxes lets anyone file federal and state taxes for free, with zero income limits or complexity restrictions. Unlike those other tax services that sneak in extra fees for certain forms or situations, Cash App Taxes covers everything—simple W-2s, business income, crypto transactions—without charging you.

It’s a solid fit for folks who feel comfortable handling their own taxes. Still, there are a few important limitations you’ll want to know about. How does Cash App Taxes actually work, and what can you expect? Here’s what you should know before you dive in.

How Cash App Taxes Work

Cash App Taxes lets you file federal and state returns for free, no matter how simple or messy your taxes might look. It supports all the main IRS forms and connects directly to your Cash App account, making it easier to keep track of documents.

Eligibility and Account Requirements

You don’t need an existing Cash App account to use Cash App Taxes. Anyone can jump in, whether you’re filing a basic W-2 or juggling multiple income streams.

You can access the platform on the web or through the mobile app. Setting up an account is quick—just a few minutes—and you’ll need to provide some basic info: name, Social Security number, email address.

Account Setup Requirements:

• Valid email address

  
  

• Social Security number or ITIN

  
  

• Name, address, date of birth

  
  

• Phone number for verification

You don’t have to link a bank account unless you want your refund sent straight to Cash App. That makes it pretty accessible, even if you don’t use the app for anything else.

Supported IRS Forms and Tax Situations

Cash App Taxes covers most of the common tax forms and schedules. Whether your situation is basic or a bit more tangled, you won’t get hit with extra fees.

Supported Forms Include:

• Form 1040 (standard tax return)

  
  

• Schedule A (itemized deductions)

  
  

• Schedule C (business income)

  
  

• Schedule D (capital gains and losses)

  
  

• Form 8949 (sales of capital assets)

  
  

• Other standard schedules and forms

You can file if you’ve got freelance gigs, rental income, investments, or a mix of all three. The software also handles credits like the Earned Income Tax Credit and Child Tax Credit.

If you’re self-employed, you can use the business forms. The platform calculates estimated payments and helps with quarterly filing, which is honestly a relief for freelancers.

Free Federal and State Filing Explained

Cash App Taxes keeps things simple: file your federal and state returns for free. No hidden charges, no “gotchas” based on how much you earn or how complicated your taxes are.

Most other tax software charges for state returns or throws in extra fees for certain forms. Here, you get:

• Federal tax return filing

  
  

• One state return (or more, if you qualify)

  
  

• All supported IRS forms and schedules

  
  

• Audit support and guidance

  
  

• Maximum refund guarantee

They maintain IRS-level security and act as an authorized e-file provider. You get the security and accuracy of paid software, but without coughing up your cash.

Cash App Tax Documents and Form 1099-K

If you use Cash App a lot, you might get a Form 1099-K for payments above the IRS reporting threshold.

The IRS now requires payment apps like Cash App to send you a 1099-K if you receive over $600 in payments for goods or services in a tax year. Money you send to friends or family usually doesn’t count.

1099-K Reporting Triggers:

• More than $600 in business or goods/services payments

  
  

• Payments marked as business transactions

  
  

• Sales using Cash App’s business features

Take a close look at your 1099-K and only report what’s actually taxable. Personal reimbursements, gifts, or transfers between your own accounts aren’t taxable, even if they show up on the form.

Cash App Taxes helps you sort out what’s business income and what’s not, so you don’t end up over-reporting.

Tax Preparation, Features, and Limitations

Cash App Taxes covers the basics for most people, but it’s not perfect for everyone. The platform supports the main deductions and credits, but it won’t work if you need to file in multiple states or have certain types of business income.

Tax Deductions and Credits Supported

You can claim most standard deductions with Cash App Taxes. It supports the student loan interest deduction and common itemized deductions.

When it comes to credits, you can file for the Child Tax Credit and child and dependent care credit—the ones families usually need.

It’s great for folks who take the standard deduction or have simple itemized deductions.

On the flip side, Cash App Taxes doesn’t support the foreign tax credit. If you have international tax stuff, you’ll need another solution.

The software walks you through the deductions and credits with questions that help figure out what applies to you.

State Tax Filing and Restrictions

You get free state tax filing, but there’s a catch: you can only file one state return each year.

That’s a problem if you:

• Worked in more than one state

  
  

• Lived and worked in different states

  
  

• Need to file multiple state returns

When they first launched, state coverage was limited. As of the latest updates, only certain states were available, but they planned to expand.

Unlike TurboTax and the like, which charge for each extra state, Cash App Taxes just doesn’t offer the option. If you need to file in more than one state, you’ll have to look elsewhere.

For single-state filers, though, the free state return is a real perk—especially since most competitors tack on extra fees for that.

Handling Self-Employment and Business Income

Cash App Taxes lets you report basic self-employment income. If you're a sole proprietor or an independent contractor, you can use it to file Schedule C.

You can enter any estimated tax payments you made throughout the year, and the software factors those in when figuring out your refund or what you owe.

But there are some big gaps for business filers. The platform just doesn't handle K-1 forms from estates or trusts, which is a dealbreaker for some.

If you have foreign income over $600, you're out of luck here. That rules out quite a few freelancers and contractors who work with clients abroad.

For straightforward self-employment, though, it gets the job done. You can claim basic business expenses, and it'll crunch your self-employment tax for you.

Now, if your business setup is more complicated or you deal with international income, you’ll want to look elsewhere. Honestly, Credit Karma's old tax service had pretty much the same restrictions before Square took over.