PayPal adds free DIY tax filing for US debit card customers

PayPal adds free DIY tax filing for US debit card customers

Standfirst
Partnership with april lets users file federal and state returns at no cost, integrating tax preparation into PayPal’s payments and savings tools.

PayPal has launched a free do-it-yourself tax filing option for US PayPal Debit Mastercard customers, allowing eligible users to file their 2025 federal and state tax returns through april’s online service without charge.

In a statement, PayPal said the offer could save customers about $160, based on typical fees for filing federal and state returns using commercial tax software. The service is being introduced to PayPal Debit Card users starting today and will roll out to all eligible US customers over the coming weeks.

The tax filing is delivered through april, which provides an online tax engine designed to guide users through the filing process step by step. Customers enter their information, upload tax documents and submit returns electronically to the Internal Revenue Service. For most users, the company said, the process takes less than 20 minutes.

To reduce manual data entry, april automatically prefills information from uploaded documents, such as W-2 or 1099 forms. It also offers an artificial intelligence-powered chatbot to answer common tax questions, while live human support is available for an additional fee. The company said april guarantees users receive the maximum refund they are entitled to under the tax rules.

“At PayPal, we’re committed to giving our customers smarter, more rewarding ways to manage their money all in one centralised place, whether they are earning, spending, sending or saving,” said Shanthi Sarkar, vice-president of debit and money management at PayPal.

The integration links tax filing directly to PayPal’s payments and financial products. Customers can pay any federal or state tax owed using PayPal Credit, the PayPal Cashback Mastercard or the PayPal Debit Card. Refunds can be deposited into PayPal accounts, with PayPal saying federal refunds may arrive up to five days early when users choose PayPal Direct Deposit. Refunds can also be placed into PayPal Savings, which is provided by Synchrony Bank.

For a lay user, the appeal is convenience rather than new tax features. Instead of moving between separate tax, banking and payment apps, customers can file returns and manage payments and refunds within the same ecosystem they already use for day-to-day transactions.

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“By connecting tax filing to where customers already manage payments, we can deliver better outcomes for both PayPal and its customers,” said Ben Borodach, chief executive and co-founder of april. He said the partnership is intended to simplify a task that many people find time-consuming and confusing.

PayPal advised customers to visit its website for further details on how to access and use the april tax filing service as it becomes available to all US PayPal Debit Card users.

The Recap

• PayPal partners with april to offer free 2025 tax filing.
• Free filing could save about $160 compared with typical costs.
• Service available starting today, rolling out to U.S. customers.