Varo Becomes the First U.S. Bank to Offer Free Tax Prep and Filing

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Jan 16, 2024, 08:00 ET

Free in-app tax service with Column Tax saves money for majority of Americans living paycheck-to-paycheck

SAN FRANCISCO, Jan. 16, 2024 /PRNewswire/ -- Varo Bank, N.A., the first nationally chartered consumer techbank in the U.S., today announced the banking industry's first free tax prep and filing service through a partnership with Column Tax. The tax service allows all Varo account holders to prepare and file comprehensive tax returns with Column Tax through their Varo Bank App.

According to the National Taxpayers Union Foundation, taxpayers spend $104 billion a year preparing and submitting tax returns. Now, eligible users can file directly for free within the Varo Bank app, with most applications taking less than 15 minutes to file. Additionally, users who file their taxes with Column Tax through their Varo Bank App will have access to their return up to five days early.^¹ According to a recent Bankrate survey, 75% of respondents said this year's tax refund would be very or somewhat important to their financial health, making payment timing more critical than ever.

"Submitting tax returns is one of the most stressful financial events of the year - especially for cash-sensitive people striving to get ahead but often finding themselves living paycheck-to-paycheck. By providing access to free tax preparation and tax filing through Column Tax, Varo has created yet another trusted, secure tool our customers can use to improve the quality of their financial lives by saving them time and money," said Varo Chief Executive Officer and founder Colin Walsh.

The Varo tax service follows the launch of Varo To Anyone, a free, instant payment service with money sent, received, and stored from Varo Bank accounts insured up to $250,000. Varo to Anyone transfers can be sent to anyone with a U.S. debit card, no matter where they bank.

Column Tax co-founder Gavin Nachbar said, "By reducing the tax filing process to as little as 15 minutes and for free, we're helping Varo Bank to maximize its customers' returns with the satisfaction that comes with maximum refund and accuracy guarantees."

This new Varo and Column Tax tax service launches months after "predatory and deceptive marketing (that) impacted millions of Americans" for a popular tax filing product resulted in a $141 million dollar customer settlement.

About Varo Bank, N.A.

Varo Bank is a new kind of bank ⎼ the first nationally-chartered consumer techbank in the U.S., built from the ground up with a focus on the needs of Americans living paycheck to paycheck. From credit building to savings to faster payments, Varo has a complete solution to help hard working Americans make progress in their financial lives. Varo combines the capabilities and nimbleness of a technology company with the security and oversight of a regulated financial institution, enabling agile product design that provides technology-first solutions such as Varo Believe, a secured card to help build credit; Varo Advance, to help stretch hard-earned dollars between paychecks; and a high-yield savings account, offering one of the nation's highest APY rates in the country. Varo has been named as one of the Inc. 5000 2023 fastest growth companies in the U.S., CNBC's 2023 list of the World's Top Fintech Companies, one of Forbes' World's Best Banks, and Fast Company's Most Innovative Companies. For more information on Varo Advance, Varo Believe, and other offerings such as Perks, visit www.varomoney.com, like Varo Bank on Facebook, and follow us on Instagram and Twitter @varobank. ©2024 Varo Bank, N.A. Member FDIC.

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^¹ Early access to direct deposit funds depends on the timing of the payer's submission of deposits. Federal government direct deposit payments such as stimulus payments, tax refunds, social security payments or veterans benefits may be received and made available up to 5 days before the scheduled payment date.

Media Contact: Audrey Jacobson, Consort Partners
[email protected]

SOURCE Varo Bank