Credit Karma Tax Reviews - What Is It?
DO NOT USE Credit Karma Tax!!! You Must Read This Review!
Fully Researched: Price, User Feedback and More!
Credit Karma Tax is an online tax software service that allows consumers to file their taxes with no need to pay a dime in almost any tax situation. This service stands out for its free character in an industry where most websites have three or four levels of paid tax service. The company behind the service launched its tax filing division in 2017. It was initially known for free credit score checks, reviews of credit cards, and credit card recommendations. That year, though, they launched their free tax filing. We can only guess that the website's free service is appealing to potential customers. For comparison, TurboTax will charge you $89.99 for their self-employed or freelancer package. It is not a wise decision to pay $100 for what you can do for free on another website. It does make sense from a financial point of view. Smart consumers need to find answers to such important questions as: Which situations does the service's free filing cover and not cover? What do real users say about Credit Karma Tax? Credit Karma Tax is available to almost all taxpayers but there are some situations they don't process, though. Actually, the official website lists forms eligible for their service.
Generally speaking, there are three types of filing statuses addressed by this tax website namely homeowner, owner of investments (stocks, properties, etc) and self-employed/freelancer. If you own a home, you can get special deductions for different aspects. You can get the main deduction depending on the amount of mortgage interest you paid during the year. A tax credit can be received for some of the interest you paid. For instance, in Florida, there is a mortgage credit program that provides a tax credit up to $2,000 based on the amount paid interest you. The most vital schedule for the self-employed worker and the freelancer is the Schedule C, which is known as the Profit or Loss from Business form. With this form you can list all deductions you get for having your own business. Form 8829 is one of the most popular forms that can be used for your tax return. Freelancers and business owners who registered as an S-Corp will be able to file Schedule K-1, which can be used to report dividends and income earned from their business. This last filing group includes people who have investments rental properties, retirement accounts, in stocks, and other entities. Vital forms you will need to report your incomes, dividends, and losses include: 1099-B: Capital gains and losses, 1099-INT: Interest earned on accounts, 1099-DIV: Stock dividend payouts, and 1099-R: Payouts from retirement-related accounts.
Customer Reviews - Does Credit Karma Tax Really Work?
According to the official website of Credit Karma Tax, almost everyone can file. There is no need to fall into one of the higher mentioned categories to file your taxes with this service. You can be a combination of two of three, all three, or none of them. Other most popular websites have restrictions on people who can file for free. This site sets no limits on income but it does not mean that everyone can file with it. Based on our research, Credit Karma' tax filing covers most taxpayers. But there are certain situations and forms, that would not allow you to file with them. These people include those who lived or worked in many states during the year and earned income. The same concerns those who lived abroad and want the Foreign Earned Income Credit (Form 2555) or the Foreign Tax Credit (Form 1116). Credit Karma does not process returns for priests, pastors, ministers, and other members of the clergy. These categories require specific tax rules about parsonage allowances, self-employment tax, and other factors. Aside from what was already listed, there are some other tax scenarios not covered by the site's free filing: Form 8615, Form 8332, Form 1040NR.
One of the major advantages of using TaxAct, H'R Block, TurboTax, and TaxSlayer is that you can get audit support should you get an audit notice from the IRS. Credit Karma Tax does not provide audit support. Another thing this site doesn't offer is a review from a tax pro. But you can get it from H'R Block or TurboTax.
It is high time to discuss public opinion about Credit Karma Tax. This free tax software was a big deal when it launched in 2017. So, many of the top tech websites provided their reviews on its functionality. After reading through these reviews, we summarized the most common complaints: lack of customer support, some deductions were hard to find, problems with forms, error messages popped up frequently, navigating the software was hard. One positive moment was attractive and simple user interface. It uses a nice combination of graphics, fonts, and colors. Navigation is very different. Progressing through the website is quite easy, unless you change topics quickly. There is a great number of customer reviews about the service on third-party websites. Let us take a look at what actual users of Credit Karma Tax think about their experience of using it.
"Credit Karma Tax website is the worst one I have ever used. As a rule, I use TaxSlayer but I decided to save some money by using Credit Karma this year. It was a terrible experience. I couldn't find where to enter important information, so I tried to use their chat but it was extremely slow to respond. When I was typing it dropped many of the letters I typed. It was difficult to ask a simple question because of typing difficulties. They didn't answer many of my questions at all. Even though this service is free, but my time is much more expensive! I returned to TaxSlayer I have used for years."
"Credit KarmaTax is a big rip-off. When I checked my credit rating on, I saw the ad for using this program advertised as free federal and state filing. At that moment I had already prepared my returns on TaxAct for $64 but thought it would be wiser to try Credit Karma if it was really free but I was disappointed. It turned out to be a lousy program. I was shown a schedule of charges but I filed without any payment. As a result, I was charged $197! When I called their customer service no one would respond. I am frustrated and I am looking for legal action. What a robbery!"
"Do not use CreditKarma Tax ever! They do not even support Foreign Tax Credit. My state does not tax military retirement. It is not supported by the service. If you are going to promote a free tax preparation service, you should be current on all tax laws. I spent about three hours trying to prepare my taxes but in vain. It is not worth using! Avoid it."
My Final Summary
Summing everything up, it is necessary to say that Credit Karma Tax is not worth using. Even though you don't have to pay money for using the site you can lose much of your precious time. Many people who have used it report that they don't have enough confidence that they were done correctly. In addition, the service is missing some forms/situations and two state returns. Navigation of the site is very difficult. The customer service is often unhelpful, so you should not hope to get sufficient help when facing any difficulties. Search tool is not always accurate. Mobile functionality is very limited. The only advantage of the service is its free character. However, some customers report that they were charged in the end. Taking into account everything we have learnt about Credit Karma Tax, this tax software platform cannot be recommended to usage."
Credit Karma Tax Pricing and Rates
As it was already mentioned, Credit Karma Tax is a completely free online tax software service. In this way, you can file your taxes with no need to pay anything. The service provides free federal and state tax filing and preparation. However, it cannot be used by everyone. You can read these exceptions higher in the review.