April, a tax solutions platform, announced a partnership that will allow debit card holders to file their 2025 federal and state tax returns for free on PayPal’s platform.
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“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,” said Shanthi Sarkar, vice president of debit and money management at PayPal, in a statement. “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.”
Customers using the do-it-yourself or tax self-filing service can enter information, upload documents, and file electronically with the IRS via the company’s tax engine, with the software prefilling information based on the data available in customer uploaded documents. April said it guarantees the maximum possible refund, provided the larger refund or smaller tax liability is not due to differences or inaccuracies in data supplied by the customer, their choice not to claim a deduction or credit, positions taken on their return that are contrary to law, or changes in federal or state tax laws. If customers need to, they may also pay to gain access to expert tax help or an AI assistant.
Customers can pay their taxes with their PayPal Balance account, another bank account, check or money order, or any other method supported by the IRS or state taxing authority, including PayPal Credit options. Similarly, customers can receive their refund via direct deposit to their PayPal balance account or another bank account, or may receive a check by mail. Tax refunds can also be transferred to PayPal Savings, a high-yield savings account.
After filing, customers can still access their returns.
“By connecting tax filing to where customers already manage payments, we can deliver better outcomes for both PayPal and its customers,” said Ben Borodach, CEO and co-founder of April, in a statement. “Together with PayPal, we’re helping millions of customers simplify an essential and often complicated part of managing their finances.”
The free tax filing experience began its formal rollout on Monday, and will expand to all U.S. PayPal Debit Card customers in the following weeks.
Last year April announced that it can now be used to file in all 50 U.S. states, making it the first new nationally licensed e-file provider in 15 years. Later that year, the company announced $38 million in new funding, which was led by QED Investors, with participation from Nyca Partners and Team8, bringing April’s total funding to $78 million.
