Credit Karma announced that it is embedding tax preparation software TurboTax in its app, and offering its 110 million members faster access to their refunds.
Access to TurboTax, which is owned by Credit Karma parent company Intuit, will let most of Credit Karma’s members file their federal taxes directly through the app. In addition, some of those who deposit their whole refund into a Credit Karma Money Spend account will be eligible for free filing, and may be able to receive part of their refund earlier through the TurboTax Refund Advance program.
“Refunds are often the biggest paycheck of the year for many Americans, averaging about $2,800 per person. At the same time, 60% of Americans can’t come up with $1,000 in an emergency. We want to bridge this gap by helping consumers get access to their refund sooner and give them a better place to receive and manage their money,” said Poulomi Damany, general manager of assets and tax at Credit Karma, in a statement. “With Credit Karma Money, members have access to a suite of tools to help them stay on top of their bills, save money and, for some members, build credit.”
In addition, for members who have previously filed their taxes with TurboTax, a new feature in the Credit Karma app called Financial Insights will now offer an overview of their previous years’ returns, and their data trends over time and how they compare with other members with similar profiles.
“Much like credit scores, taxes are an essential part of our financial lives. However, for much of the year, taxes are largely ignored by consumers. That’s because they can be intimidating and confusing for most people. This is a problem we’re well positioned to solve, especially now that we are part of the Intuit family,” said Ken Lin, founder and CEO of Credit Karma, in a statement. “By combining forces with TurboTax, we believe we can deliver more value to our members, giving them greater visibility into their income and taxes throughout the year and providing them with a seamless, first-in-class tax filing experience.”
Credit Karma was founded in 2007, and started offering free tax prep itself in 2017, eventually preparing as many as a million returns in a single tax season. It was bought by Intuit in early 2020.
