Cash App Taxes vs. FreeTaxUSA: Which Free Option Actually Wins

The IRS killed its own free-filing tool. Direct File — the government-run option the IRS piloted and expanded — was permanently shut down in November 2025 and never came back for the 2026 filing season. That leaves the free tier to private companies, and two names dominate it: Cash App Taxes and FreeTaxUSA. Both advertise “free federal filing.” Neither means the same thing by it.

This post compares them on the things that actually determine your bill: what “free” covers, what forms and situations get locked out, what a state return costs, and which filer type comes out ahead with each. If you’re one of the millions who filed a Form 4868 extension back in April, your deadline is October 15, 2026 — both of these tools still accept e-filed returns for extension filers, which makes this comparison relevant right now, not just in February.

The core difference in one sentence

Cash App Taxes is free for federal plus one state, full stop, but it doesn’t support a meaningful list of forms and filing situations. FreeTaxUSA is free federal for almost every situation, including self-employment and investments, but it charges for every state return. The trade is complexity versus cost: Cash App Taxes bets you’re simple enough to qualify; FreeTaxUSA bets you’ll pay a little for the state return in exchange for federal support that scales with a messier return.

Cash App Taxes: what “free” actually includes

Cash App Taxes — the rebranded former Credit Karma Tax, now folded into Cash App — charges $0 for a federal return and $0 for one state return, and reviewers have consistently found no hidden upsells or paid tiers hiding behind that offer. That’s a genuinely different model from most “free” tax software, where the free tier is a lead-in to a paid upgrade the moment your return gets slightly complicated.

The catches:

• You need a Cash App account. Filing requires signing up with an email or phone number tied to Cash App, the peer-to-peer payment app. If you don’t already use Cash App and don’t want an account with it, that’s a real barrier, not a formality.
• One state return only. If you lived or worked in more than one state during the year, Cash App Taxes can’t file the second state return at all — you’d need to go elsewhere for it.
• Montana, New Hampshire, Tennessee, and Washington aren’t supported at all. Cash App Taxes doesn’t file state returns for those four — though it matters less than it sounds, since none of the four currently levy a state income tax that would require one. Tennessee repealed its Hall tax on interest and dividends back in 2021, and New Hampshire repealed its own Interest and Dividends Tax effective January 1, 2025, so both states have joined Washington and Montana’s income-tax-free peers with nothing left for a state tax product to file.
• A real list of unsupported forms and situations exists — multi-state returns, foreign earned income or the foreign tax credit, K-1 income from estates and trusts, nonresident returns, prior-year returns, and returns for minors are commonly cited as out of scope, along with a handful of narrower credits. Cash App maintains an official list of exactly what it doesn’t support, and because that list can change, check it directly before you start a return rather than assuming your situation qualifies.

What it does handle well: W-2 income, 1099 and self-employment income, Schedule C for sole proprietors, and the standard run of deductions and credits most single-state filers need. If that’s your situation, Cash App Taxes is hard to beat on price — because there’s nothing to beat.

FreeTaxUSA: what “free” actually includes

FreeTaxUSA takes the opposite approach: federal filing is free for nearly everyone, regardless of how complicated the return is. Self-employment income, investment and capital gains, rental income — the site advertises support for over 100 federal forms and more than 350 credits and deductions, all at $0 for the federal return. There isn’t a “you’ve outgrown the free tier” moment the way there is with some competitors.

The cost shows up on the state side: a state return runs $15.99. That’s a flat per-state charge, and if you need to file in more than one state, it multiplies — but multi-state filing is at least possible, which is more than Cash App Taxes offers. FreeTaxUSA also sells optional add-ons (things like priority customer support and audit assistance) on top of the base product; pricing on those shifts, so check the current cost on FreeTaxUSA’s own pricing page before you assume what you’ll pay.

One mix-up worth avoiding: FreeTaxUSA’s everyday free-federal offer is a different product from the separate IRS Free File Program that FreeTaxUSA also participates in. That IRS Free File version is income-capped and, for those who qualify, includes a free state return too. Most people who land on FreeTaxUSA’s main site are using the everyday product, where the state fee applies — don’t assume you’re getting the Free File version just because the brand name matches.

Which filer type wins with which tool

The Pennsylvania and New Jersey wrinkle

Both states show up in Cash App Taxes’ supported-state list, so filers there aren’t stuck the way Montana filers are. But before paying anything for a state return, Pennsylvania residents should check the state’s own myPATH “Fast File” tool — it’s free, direct from the Department of Revenue, but only for a narrow slice of filers: single, full-year PA resident, exactly one W-2 from one employer, and no deductions, credits, or estimated payments to claim. Most people who need software like Cash App Taxes or FreeTaxUSA in the first place — anyone with a second income source, credits, or deductions — won’t qualify for Fast File and will still need one of these two tools (or a similar option) for the state return.

New Jersey’s own free-filing options have shifted along with the broader wind-down of government-run direct-file programs; check the New Jersey Division of Taxation’s site directly for the current status before assuming a specific state tool is available for this filing cycle.

The bottom line

If your return is genuinely simple — one job, one state, standard deductions — Cash App Taxes costs nothing and asks nothing extra of you beyond a Cash App account. The moment your return involves a second state, investment income, a K-1, or anything on the exclusion list, FreeTaxUSA’s broader federal support is worth the flat per-state fee, because the alternative is discovering mid-return that Cash App Taxes simply won’t file your situation at all. Check your own forms against Cash App Taxes’ current unsupported-situations list before you start — it’s the one step that prevents wasted time on a return you can’t finish there.

Frequently asked questions

Is Cash App Taxes actually free, or is there a catch?
It’s genuinely free for federal and one state return, with no paid upgrade tier that reviewers have found. The real limitation isn’t hidden pricing — it’s the list of forms and situations it won’t handle at all, like multi-state returns or foreign income.

Why does FreeTaxUSA charge for state filing if federal is free?
The federal return is free regardless of complexity because that’s the core product FreeTaxUSA uses to compete for volume; state returns are priced separately at $15.99 each. It’s a different business model than Cash App Taxes’ fully bundled free offer.

Can I use either of these after the April deadline if I filed an extension?
Yes. Both accept e-filed returns for extension filers ahead of the October 15, 2026 deadline. Confirm exact e-file shutdown dates for the season on each provider’s site as you get closer to that date, since the IRS e-file system doesn’t stay open indefinitely into November.

Is FreeTaxUSA’s free offer the same as the IRS Free File Program?
No. FreeTaxUSA’s standalone product offers free federal filing to nearly everyone with a state fee. Its separate IRS Free File Program version is income-capped and includes a free state return for those who qualify — check which one you’re actually using before you file.

Related guides

• TaxHawk vs. FreeTaxUSA
• Which Tax Software Should You Use in 2025? A Guide for Every Type of Filer
• Best Tax Software for Self-Employed and Freelancers in 2025

This is general information, not tax advice. Pricing, supported forms, and state availability for both providers can change between filing seasons — confirm current details directly with Cash App Taxes, FreeTaxUSA, the IRS, or a licensed tax preparer before you file.