(Credit: Farknot Architect, Shutterstock / Farknot Architect)

Credit Karma has some good news for taxpayers this year.

The company analyzed user data from more than 1 million members who entered self-reported information into the company's Tax Reform Impact tool -- a new feature designed to educate them on how the Tax Cuts and Jobs Act (TCJA) could impact their 2018 federal income taxes.

Credit Karma found that up to 94 percent of them may owe less this year, and after extrapolating the results, the company projects that Americans will be saving $430 billion, overall.

Credit Karma's new tax reform calculator is just one of several new features that the company has rolled out to help improve users' tax preparation experience within the Tax section of the Credit Karma (download for Android and iOS) app.

SEE: Best free tax software for your 2019 IRS return

First off, Credit Karma Tax will now offer three new features that other tax preparation services charge for -- all for free. The Audit Defense provides correspondence management and in-person representation if a user gets audited by the IRS or the State. The Accurate Calculations Guarantee promises to reimburse filers if the IRS or State Tax Authority penalizes them for a Credit Karma Tax calculation error -- up to $1,000. The Maximum refund guarantee promises to pay the difference -- up to $100 -- if users can find a better refund from a competing online tax preparation service.

"Taxpayers care about three things: accuracy, cost-to-file and getting their maximum refund," said Jagjit Chawla, General Manager of Credit Karma Tax. "Given that, we've decided to double down on the guarantees that matter the most to our members. We hope this gives them added peace of mind when filing with us."

In addition, users can now expect a more streamlined onboarding process through Credit Karma Tax's Jumpstart feature, where relevant info from a prior tax return is auto-filled into the new one (with 1040s imported from competing tax preparation apps for new customers).

And with so many users now starting their taxes on their mobile device, Credit Karma will also allow users to finish what they've started on their phones or tablets. That means that everyone from simple filers to small business owners, rental property owners and cryptocurrency traders can now prepare and file their taxes easily from their mobile device. Credit Karma Tax is the only major tax provider that offers free Mobile Filing for all filers from start to finish on their phone.

"Free" has been the name of the game for Kenneth Lin, Nichole Mustard and Ryan Graciano, since founding Credit Karma, back in 2007. Over 85 million users across the US and Canada now turn to the personal finance technology company to file taxes, check their credit, monitor their identity and get auto insurance estimates -- all for free.

If a member opts to share their financial data with Credit Karma, then the company will analyze it and offer personalized recommendations for financial products like credit cards, personal loans, mortgage refinancing, automotive financing and student loan refinancing for building their credit or saving money.

If a Credit Karma member accepts one of these offers, the bank or lender pays Credit Karma. Note: Members can always opt out of sharing their data with Credit Karma and still file using Credit Karma Tax.

"Credit Karma entered the tax industry for the same reason it got into the credit space," said Jagjit Chawla. "We believe consumers shouldn't have to pay to access and monitor their financial information, nor should they have to pay to file their taxes. We offer a truly premium product for free and support the vast majority of all tax situations. Plus, we have our members' backs. What's more, those who file with Credit Karma Tax will not experience any hidden fees or upsells, no matter what."


  • Studying data entered by users into its new Tax Reform Impact tool, Credit Karma found that up to 94 percent of them may owe less this year, and after extrapolating the results, the company believes that Americans could save $430 billion, overall.
  • Credit Karma's new tax reform calculator is just one of several new features including Audit Defense, Jumpstart, Accurate Calculations Guarantee, Maximum refund guarantee, and Mobile Filing that the company's launched to help users do their taxes using the company's Credit Karma app.

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Joshua is an editor for CNET's He covers the mobile tech and apps that power our lives and interviews celebrities about their favorite apps. Previously, he worked as an editor at Healthline and and as a contributing writer for Mac Directory, MacAddict, SF Weekly, SF Examiner, and SF Chronicle.