TurboTax now includes a software integration with Credit Karma Money, Credit Karma’s U.S. checking account solution. Taxpayers who file through TurboTax can now opt to open a Credit Karma Money Spend account and have their tax refund sent there directly.
Intuit, which makes TurboTax, acquired Credit Karma in December. This is the first software integration between the companies.
“We believe consumers should have a checking account that helps them make financial progress, which is why we created Credit Karma Money Spend,” said Kenneth Lin, founder and CEO of Credit Karma, in a statement. “We’re starting 2021 off by leveraging our relationship with Intuit to bring Credit Karma Money to millions of tax filers this tax season. A tax refund is the biggest paycheck for many Americans and with this TurboTax integration we can help them put that money to work avoiding unnecessary fees and helping to guide healthy financial decisions to maximize their day-to-day spending and billpay.”
Users who set up direct deposit with Credit Karma Money Spend can access two-day early access to their money. Account holders can also instantly get their debit card added to their digital wallets to use it right away, instead of waiting for a physical card to arrive. The Instant Karma feature is designed to encourage people to make payments with the money they have in their accounts by giving members a chance to earn money for taking actions like making an on-time payment on a credit card bill or automating a direct deposit.
Credit Karma Money Spend launched in public beta late last year.
Credit Karma is an independent third-party and is not a bank. The Credit Karma platform facilitates the opening and managing of Spend and Save accounts offered through its bank partner MVB Bank, Inc., Member FDIC.