Credit Karma Tax Preparation Software Review

Credit Karma Tax - Overview

Credit Karma has always impressed us with its suite of free credit score tools. This year, the company has added a tax prep application to its offerings -- and like its credit scoring package, it comes completely free of charge. 

Some of its competitors offer free federal return prep but charge for state returns. Others in the industry offer free basic returns, but charge extra when returns are complicated by investments, independent contractor income, and situations that require the filing of additional schedules and forms. Some tax prep firms charge extra for audit defense. In this field, Credit Karma distinguishes itself by being available and free. It does not charge for any of its services or features.

Just because Credit Karma is free doesn't mean that it is a bare-bones tax application. It can handle 1099-DIV and 1099-INT forms, deductions for student loan interest, mortgage interest, and property taxes, business profit and loss forms, rental income, and capital gains. Its guarantees are on par with the best of the companies we've reviewed and include accuracy and maximum-refund clauses. And it's available on both mobile and desktop devices. 

Credit Karma was founded in 2007 and entered the tax prep field in December 2016. Though it processed over a million tax returns in its first six months of operation, there still isn't much consumer feedback on the quality of its services. Still, its related products are generally well regarded by its 60 million-plus members.

With its free, robust array of tax prep tools, Credit Karma Tax has vaulted into the top echelon of tax prep companies--and has earned our positive recommendation.
 

Credit Karma Tax - Platforms

Credit Karma Tax is a cloud-based application that's compatible with PC and Mac operating systems, as well as with Android and iOS mobile platforms. 
 

Credit Karma Tax - Plans and Features 

• No charge for federal or state returns for all schedules that are supported
• Calculations are guaranteed to be accurate
• Refund guaranteed to be the highest allowable
• Free audit support
• Free credit score

Credit Karma Tax - Summary

Credit Karma Tax has three powerful things going for it: 1) it's free, 2) it's robust, and 3) it offers guarantees of accuracy, max refund, and audit defense. It should have strong appeal to individual taxpayers who are looking for an alternative to pricey paid tax prep services.