I made the switch from TurboTax to FreeTaxUSA two years ago for exactly this reason - they were trying to charge me $59 just for having an HSA! FreeTaxUSA has been fantastic and completely legitimate. The interface is definitely more no-frills compared to TurboTax's flashy design, but it walks you through everything you need and includes all the necessary forms in their free version. I actually prefer it now because there's no constant pestering to upgrade or buy additional services. One thing I really appreciate is their transparent pricing - what you see is what you get. No surprise fees at the end. The $15 state filing fee (if you need it) is clearly stated upfront, unlike TurboTax's habit of revealing costs at the last minute. Your tax situation sounds perfect for FreeTaxUSA's free tier. With just W-2 income, standard deduction, and an HSA, you'll have everything you need without paying a dime for federal filing. I've recommended it to several friends in similar situations and they've all been happy with the switch.

FreeTaxUSA is absolutely legit! I switched from TurboTax last year for the exact same reason - they wanted to charge me $59 just because I had an HSA contribution to report. It felt like such a scam since my taxes are otherwise super simple. I was nervous about making the switch too, but FreeTaxUSA handled my HSA form (8889) perfectly in their free tier. The interface is definitely less polished than TurboTax, but honestly that was kind of refreshing? No constant pop-ups trying to sell me additional services or "maximize my refund" for extra fees. The only real downside is that you'll need to manually enter your info the first year since they can't import from TurboTax, but it's worth the one-time hassle to escape their predatory pricing model. I ended up getting the exact same refund amount and saved myself $59 in the process. Will definitely be using FreeTaxUSA again this year!

Does anyone know if theres special requirements for filing 1120S if you started the scorp mid year? My accountant wants to charge me extra for a "short year return" but im wondering if the software can handle this?

Just wanted to chime in as someone who's been through this exact situation. I started with an S-corp last year and initially tried to find free options but quickly learned that business returns are a whole different beast from personal taxes. After reading through these comments, I think the key takeaway is that while free options don't exist for 1120S filings, there are definitely cost-effective alternatives to paying $800+ to an accountant. The mid-tier software options mentioned here (TaxAct, TaxSlayer) or newer AI-powered solutions seem like reasonable compromises between cost and complexity. One thing I'd add is to make sure whatever software you choose can handle things like shareholder basis calculations and K-1 preparation - these are crucial for S-corps and where a lot of DIY filers mess up. If your business is really simple with just you as the sole shareholder, the learning curve isn't too bad. But if you have multiple shareholders or complex transactions, might be worth biting the bullet on professional help at least for the first year.

I was in EXACTLY your situation last month. After weeks of stress, I finally broke down and tried taxr.ai after seeing it mentioned here. It actually explained everything that was happening behind the scenes with my return and gave me an accurate timeline. Turns out my return was flagged for a simple discrepancy between what my employer reported and what I filed. Saved me so much anxiety knowing exactly what was happening! https://taxr.ai

I'm going through the exact same thing! Filed March 1st, accepted March 2nd, and my transcript has been completely blank for over a month now. The "as of" date keeps changing but nothing else updates. I've called three times and each agent tells me something different - first it was "normal processing delays," then "possible identity verification needed," and last week they said there was no issue at all and to just keep waiting. It's so frustrating not knowing what's actually happening. At least it sounds like we're not alone in this mess!

Has anyone actually gone through an IRS audit with this situation? I'm worried about taking this approach and then getting flagged for audit because the IRS system doesn't understand what I'm trying to do. I mean, technically we're following the rules, but it seems like we're doing something the forms weren't designed for. Just wondering if anyone has real experience with how the IRS handles this in practice.

I've been following this discussion with great interest since I'm in a very similar situation as an expat with capital loss carryforwards. Based on what I'm reading here, it sounds like there are multiple valid approaches, but they all require very careful documentation. One thing I'm noticing is that everyone seems to agree on the importance of creating a clear paper trail with detailed statements attached to your returns. Whether you use the tax benefit rule approach that Lydia mentioned, or preserve the full loss with an explanatory statement like others have suggested, the key seems to be transparency with the IRS about what you're doing and why. I'm leaning toward calling the IRS directly using that Claimyr service several people mentioned to get official guidance for my specific situation. It seems like getting confirmation directly from an IRS agent would give me the most confidence in whatever approach I choose. Has anyone found specific IRS publications or guidance documents that address this scenario? I'd love to have some official written guidance to reference in addition to the verbal confirmation from phone calls.

Just wanted to add one more reassuring point for your peace of mind - you're in an exceptionally strong position for the Section 121 exclusion. Not only do you easily meet all the requirements (ownership and use for 3+ years, married filing jointly, first use of the exclusion), but your expected gain of $130k is well within the safe zone of the $500k exclusion limit. One thing that might be worth considering as you plan your timeline: while there's no tax requirement to buy immediately, some lenders have programs that give better rates or terms to buyers who are selling and buying simultaneously. But that's purely a financing consideration, not a tax one. Also, since you mentioned you're planning to start a family, the flexibility to rent while you find a home in the perfect school district or neighborhood for kids could be really valuable. The Section 121 exclusion gives you that luxury of time to make the right choice for your growing family without any tax clock ticking. Sounds like you've got this all figured out! The tax piece should be straightforward, and you can focus on finding that perfect family home.

Congratulations on being in such a solid position for the Section 121 exclusion! Reading through this thread, it's clear you've got all the key pieces figured out. I wanted to add one practical tip that helped me when I went through my home sale: start gathering your documentation now, even though you probably won't owe any taxes. Create a folder with your original purchase documents, all improvement receipts (like that kitchen remodel and window replacement you mentioned), and any records of selling costs. Even though your $130k gain will be fully excluded, having everything organized makes tax prep much smoother. Also, since you mentioned the crazy market in your area - that's actually working in your favor tax-wise! The higher your home appreciates, the more valuable that $500k exclusion becomes. You're essentially getting a huge tax-free windfall that you can put toward your next chapter. Best of luck with the sale and finding your perfect family home! Sounds like you can approach both with confidence now.