Credit Karma Flips the Script on Tax This Season

Rhea-AI Summary

Credit Karma has launched a new tax experience for U.S. members, integrating with Intuit's TurboTax. The new service simplifies tax filing, offering early access to refunds through Credit Karma Money's refund advance programs. Members filing simple tax returns can do so directly in the Credit Karma app and receive their refunds earlier. The platform aims to provide valuable financial insights and tools, helping users manage their money effectively. The integration is designed to enhance user experience and provide greater visibility into personal finances.

Positive

• Integration with TurboTax to streamline tax filing.
• Early access to tax refunds through Credit Karma Money.
• Enhanced financial insights and tools for users.
• Potential for free TurboTax filing for certain users.

Negative

• None.

Credit Karma launches new tax experience to help its members in the U.S. seamlessly file their taxes through Intuit TurboTax integration and get faster access to their refund through early deposit and refund advance programs

OAKLAND, Calif.--(BUSINESS WIRE)-- Credit Karma, the consumer technology platform with more than 110 million members in the U.S., has launched a new tax experience with the goal of taking the stress, uncertainty and complexity out of taxes and helping members make the most of their refund. This includes seamless tax filing through TurboTax and faster access to refunds in-season through early deposit and refund advance programs, as well as deeper insights into their finances throughout the rest of the year. Through this integration, Credit Karma and TurboTax, from Intuit (NASDAQ: INTU), will offer most filers with simple tax returns the option to file their taxes with TurboTax directly within the Credit Karma app and gain faster access to their refund with Credit Karma Money.¹

Additionally, Credit Karma will launch a new feature to provide its members who previously filed their taxes with TurboTax with rich insights about their finances, income and taxes on an ongoing basis. Members will also be able to estimate their refund and review common tax terms to help them better understand their finances, navigate life events and plan for the future.

“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. “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 is leaning into Intuit’s innovative technologies with its latest integration with TurboTax, the leader in online tax preparation. Now, Credit Karma members who choose to file their taxes with TurboTax within the Credit Karma app will be able to enjoy the best of both products, along with special offers and discounts. For example, some tax filers who choose to deposit their entire refund into a Credit Karma Money Spend account² will be able to file their taxes with TurboTax for free.³ Additionally, TurboTax filers who choose to deposit their refund into a Spend account could receive their refund early through direct deposit.⁴ Some eligible filers may even have the chance to receive part of their refund even earlier, in some cases in as little as one hour of the IRS accepting their return⁵, through the TurboTax Refund Advance program⁶.

“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, GM of assets and tax at Credit Karma. “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.”

Financial insights, a new feature within the Credit Karma app, will provide members who previously filed their taxes with TurboTax with a snapshot of information from their previous years’ tax returns, as well as a breakdown of other key tax stats, such as past refund amounts, effective tax rates and the amount of taxes paid at the state and federal level. Additionally, members will be able to see how their data trends over time and how that compares to others with similar profiles.

About Credit Karma

Founded in 2007 by Ken Lin, Credit Karma, an Intuit company (Nasdaq: INTU), is a consumer technology company with more than 120 million members in the United States, U.K. and Canada, including almost half of all U.S. millennials. While best known for pioneering free credit scores, the company’s members turn to Credit Karma for everything related to their financial goals, including identity monitoring, applying for credit cards, shopping for loans (car, home and personal), auto insurance, savings accounts and now checking accounts through our bank partner, MVB Bank, Inc., Member FDIC — all for free. Learn more about how Credit Karma members are making financial progress on TikTok, Instagram, Facebook and Twitter.

About Intuit

Intuit is the global technology platform that helps consumers and small businesses overcome their most important financial challenges. Serving more than 100 million customers worldwide with TurboTax, QuickBooks, Mint, Credit Karma, and Mailchimp, we believe that everyone should have the opportunity to prosper. We never stop working to find new, innovative ways to make that possible. Please visit us for the latest information about Intuit, our products and services, and find us on social.

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¹ Offerings mentioned within this release will only be made available to Credit Karma members who have not previously filed their taxes with Credit Karma Tax. Members who have previously filed their taxes with Credit Karma Tax will not be eligible to receive the same discounts and offers during the 2021 tax season that are available to those who have not. A simple tax return is Form 1040 only.
² Banking services provided by MVB Bank, Inc., Member FDIC. Maximum balance and transfer limits apply. Third-party fees may apply. Please see Account Terms & Disclosures for more information.
³ Eligibility and terms apply for free filing.
⁴ If you choose to pay your tax preparation fee with TurboTax using your federal tax refund or if you choose to take the Refund Advance loan, you will not be eligible to receive your refund early. This early access program may change or discontinue at any time. Early access to your federal tax refund is compared to standard tax refund electronic deposit and is dependent on and subject to IRS submitting refund information to the bank before release date. IRS may not submit refund information early.
⁵ Most customers receive funds for Refund Advance within 1-2 hours after IRS E-file acceptance. Estimated IRS acceptance begins late-January.
⁶ The Refund Advance loan is provided by First Century Bank, N.A., Member FDIC, not affiliated with MVB Bank, Inc., Member FDIC. Refund Advance is facilitated by Intuit TT Offerings Inc. (NMLS # 1889291), a subsidiary of Intuit Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211220005185/en/

Stephanie Cook

pr@creditkarma.com

Source: Credit Karma

FAQ

What is the new tax experience launched by Credit Karma?

Credit Karma's new tax experience allows members to file their taxes seamlessly through TurboTax integration, offering early access to refunds and financial insights.

How does Credit Karma's tax experience benefit users?

It simplifies tax filing, provides faster refunds, and offers insights into personal finances throughout the year.

What features does the Credit Karma-TurboTax integration include?

Users can file simple tax returns directly in the Credit Karma app and access early refunds via Credit Karma Money.

When can users expect to receive their tax refunds through Credit Karma?

Eligible users may receive their refunds as quickly as one hour after the IRS accepts their return.

What is the stock symbol for Intuit?

The stock symbol for Intuit is INTU.