FinTech News
PayPal Partners with April to Provide Free Tax Filing Option
This tax season, PayPal debit card customers will have a new, free option for filing their tax returns.
About the PayPal-April Partnership
PayPal has announced a new feature that will allow PayPal Debit Mastercard customers in the United States to file their taxes for free. This capability comes courtesy of April.
According to PayPal, customers who take advantage of this offer can save approximately $160. That’s because April’s services include free federal and one free state filing. That said, while the do-it-yourself (DIY) option with AI chatbot support is free, customers will also have the option to upgrade to a live support plan. This expert assistance option is $35.
In the event that PayPal customers owe money on their taxes, the company notes that they have payment options, including six-month special financing. Meanwhile, those who receive refunds can get their money up to five days early using PayPal Direct Deposit. Moreover, customers can put their refund in a PayPal Savings account, which currently earns 3.65% APY.
Select PayPal Debit Card customers can access the April tax-filing feature now, with the service rolling out to all PayPal Debit customers in the U.S. in the weeks ahead.
More on the PayPal Debit Card:
With the PayPal Debit Card, customers can earn up to 5% back. Specifically, each month, cardholders can choose one eligible spending category, with options including dining, groceries, and more. Then, each new month, customers can elect to choose the same category again (although they still must re-select, as it’s not automatic) or opt for a different one.
Although the 5% back is capped at a total of $1,000 in eligible category spending per month, this offer may stack with other PayPal deals. For example, those who choose dining as their 5% category may find a PayPal offer for Starbucks, allowing them to earn 9% or 10% back instead.
What They’re Saying:
Announcing the new partnership with April, PayPal’s VP of Debit and Money Management Shanthi Sarkar said, “At PayPal, we’re committed to giving our customers smarter, more rewarding ways to manage their money all in one centralized place, whether they are earning, spending, sending or saving. Our partnership with April empowers customers to manage even more of their finances in one trusted place, helping them streamline tax preparation and take meaningful steps toward setting up their finances for the year ahead.”
Meanwhile, April CEO and co-founder Ben Borodach stated, “By connecting tax filing to where customers already manage payments, we can deliver better outcomes for both PayPal and its customers. Together with PayPal, we’re helping millions of customers simplify an essential and often complicated part of managing their finances.”
My Thoughts:
Even though I’m nowhere near ready to file my taxes, I went through the first few steps with April to gain a bit more insight. For one, it would appear that the service supports all (or at least most) tax situations, as I saw no mention of “1040 only” or the like. That’s good news for me as I’m usually ineligible for free services due to my freelance status — although I did use Cash App Tax for free last year.
While I can’t yet speak to how good this particular service is, I do love that more and more free tax filing options keep popping up. As a PayPal Debit Card user myself, perhaps I’ll give this April feature a try this, er, April.
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