Members of Chime can now file their taxes for free through the app.

Chime is offering its members the option to file their state and federal taxes for free through its banking app.

According to a San Francisco-based fintech company, simple returns can be completed in as little as 24 minutes, and members who set up direct deposit can receive their federal tax refund up to six days early.

Chime has partnered with Column Tax and April to offer a tax service backed by a 100% accuracy guarantee. If a calculation error results in IRS penalties, Chime will pay the fines up to $10,000. Additionally, Chime guarantees the biggest refund possible or will pay the difference.

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The in-app tax filing program offered by Chime enables users to claim itemized deductions and covers a variety of tax situations, including W-2 income, retirement income, unemployment insurance, Social Security benefits, and sales of stocks and cryptocurrencies.

In 2023, Column Tax partnered with Chime to offer in-app tax preparation.

In 2023, MoneyLion introduced free filing to customers with RoarMoney bank accounts. The following year, online banks Varo and Current also made the same option available.

In 2021, Intuit renamed Credit Karma Tax to Cash App Taxes, which offers free e-filing for both federal and state tax returns. Additionally, it allows users to itemize deductions and supports complex tax scenarios, such as freelance income, retirement distributions, and bitcoin sales.

Many prominent tax software companies, such as TurboTax and H&R Block, offer free versions for basic tax returns.

The IRS has broadened its Direct File program, enabling taxpayers in 25 states to submit their tax returns to the agency without any fees. To be eligible, you must be a W-2 employee, receive Social Security or unemployment benefits, or have an investment income of less than $1,500.

An estimated 30 million taxpayers are eligible to submit their 2024 returns using DirectFile.

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