Chime announced that members can now file taxes for “free” directly from the company’s Fintech app in order to simplify tax season.
Following a pilot program in 2024, this in-app feature is reportedly available for new and existing Chime members and offers a streamlined “e-filing experience with no unexpected paywalls and no filing fees.”
Members can file their federal and state taxes directly “through the Chime app, saving time and money.”
Chime’s Chief Product Officer, Madhu Muthukumar said:
“Americans are frustrated by the tax filing industry, which is notorious for high fees and deceptive marketing. They’re tired of bait-and-switch services that seem free but ultimately charge users a fee to get their refunds. Getting your money back from the government shouldn’t cost you money. By providing completely free in-app tax filing, we’re empowering Americans to unlock their financial progress confidently, making tax season easier and more rewarding.”
This feature comes as the average cost of filing “a basic federal 1040 tax return was $150 for non-business taxpayers in 2023.”
According to the Tax Foundation, total tax compliance costs—including fees, lost productivity, and “out-of-pocket expenses—are estimated to cost American taxpayers over $546 billion annually, representing 1.9% of the U.S. GDP.”
When Chime members e-file their taxes through Chime in partnership with april and Column Tax, “filing is completely free.”
Plus, members can get their federal tax refund “up to 6 days early when they direct deposit it” with Chime.
Key features of Chime’s in-app tax filing include:
- “Free” to file: Members can file federal and state taxes for free in the Chime app.
- Refund up to 6 days early: Members can get their federal tax refund up to 6 days early⁷when they direct deposit with Chime
- “Accurate” calculations: If a user pays an IRS penalty because of a calculation error made by Chime’s tax filing partners april or Column Tax, they will reimburse up to $10,000.
- “Max refund” guaranteed: If a member finds they’re eligible for a higher return elsewhere, they will be reimbursed the difference.
- File “faster” than the national average: Chime members can typically file in under 24 min, under the national average of 3 hours.
- Switch easily: Simply scan last tax season’s return to get a head start
Since its founding, Chime claims that it has been recognized for providing innovative, easy-to-understand financial service products that all aim to address the “liquidity and credit needs of everyday people.”