For years, American taxpayers have depended on popular software like TurboTax or H&R Block to help them make short work of tax filing. Online banking app Chime is claiming that its new tax service provides an “easier and more rewarding” approach to doing your taxes.
Starting today, Chime members can file their federal and state taxes for free on the app and get their federal tax return up to six days early when they deposit it in the app. Chime is partnering with tax software partners April and Column Tax to offer this new service.
“There’s a real pain that most Americans feel when it comes to their taxes—even when the majority of Americans receive a refund—and it’s related to how much they pay and not knowing how much they’re going to pay because of complex pricing tiers that depend on your tax situation,” says Ben Borodach, CEO of April.
Last year, Chime pilot-tested its tax filing system and says its platform enables users to file in under 24 minutes, eight times faster than the national average of 3 hours. Furthermore, if Chime or its filing partners cause a user to incur an IRS penalty due to a calculation error, they will reimburse up to $10,000 in costs.
Tax season is stressful, here’s how to make it easier
Filing taxes can be a trying and frustrating process, especially for those doing it for the first time or who have complicated tax situations. However, professional help is not always feasible for everyone since tax preparation services can cost hundreds of dollars. Plus, there’s a history of deceptive practices.
Just last year, the Federal Trade Commission ordered TurboTax to stop advertising its products or services as free unless they were for all customers or shared the percentage of qualified customers.
“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,” Madhu Muthukumar, Chime’s chief product officer, said in a press release.
The IRS itself has tried to make the process more accessible by allowing taxpayers making less than $84,000 in adjusted gross income to file their federal taxes for free with IRS partners like TaxAct and TaxSlayer. In 25 states, individuals can file for free with IRS Direct File.
Incoming President Trump’s Department of Government Efficiency (DOGE) is also reportedly exploring creating a mobile app for taxpayers to file their taxes better. April says the mobile-first approach to filing taxes makes sense for busy Americans.
“Americans live their life ‘on the go’ and increasingly use their phones to do everything and anything. Why shouldn’t they use their phone to do their taxes? You can use the little moments of waiting every day to chip away at the return, we make it easy to pick up where you left off, and you don’t have to download another app to access and work on your return,” Borodach adds.
Chime—which was once valued at $25 billion—submitted a confidential IPO filing late last year, according to Bloomberg.