Is the Cash App safe for tax returns?
In November 2020, Square acquired Credit Karma Tax and announced it would add free tax filing features to the Cash App. How do you use it and is it safe?
This year those looking for free options to file their taxes can look no further than an app they might already have on their cell phone: The Cash App.
Sqaure Inc. acquired Credit Karma Tax in November 2020 and this year will add that product into the features offered through the Cash App. The application routes that many users will be able to submit a simple tax return in minutes, free of charge.
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How to file with the Cash App
To use the app to file your taxes you will first need to download it and create an account. The company has assured that using the software is "100% free" for federal and state returns, even for filers who wish to claim credits and deductions.
To ensure confidence in the software, the site says that it will offer an Accurate Calculation Guarantee that states "If the IRS and/or applicable state tax authority imposes penalties and/or interest on you due to a Cash App Taxes calculation error, we will reimburse you up to a maximum of $1,000 in the form of gift card(s)."
How is the application protecting data?
The Q&A posted on the website, it states that the app will "Use 128-bit or higher encryption to protect the transmission of your data to Cash App Taxes." Additionally, as tax data is subjected to various federal laws to ensure the highest levels of protection, the app will ensure it is in compliance. Like many apps that hold sensitive and private data, it will use 2-fact authentication and has third-party teams who work constantly to flag any gaps in the security.