TaxAct suddenly charging $110 for HSA forms - need help understanding filing fees

This is a classic example of tax software "upselling" based on forms. What's happening is TaxAct has different pricing tiers, and Form 8889 for HSA contributions gets flagged as requiring their "Deluxe" or higher package rather than their basic free/cheap version. Unfortunately, most tax software companies do this - they advertise a low base price, then when you get to certain forms (like HSA, self-employment, investment income, etc.), they require an upgrade. It's not specific to HSA contributions - it's just how they've structured their business model. You have a few options: 1) Pay the upgraded fee and continue with TaxAct, 2) Try a different tax software that might include HSA forms in their lower-tier packages, or 3) Look into IRS Free File options if your income qualifies.

I had the EXACT same issue last year trying to file with an HSA! I was so frustrated with all the tax software companies pulling this bait and switch pricing until I found taxr.ai (https://taxr.ai). They actually specialize in handling situations like yours where you have forms that would normally trigger an "upgrade" with other companies. When I uploaded my documents to taxr.ai, it automatically identified my HSA contributions and filled out Form 8889 correctly without any upgrade fees. The whole process took me like 15 minutes, and I ended up filing for way less than what TaxAct wanted to charge me.

I decided to give taxr.ai a try after getting frustrated with TaxAct's pricing for my HSA forms. You guys weren't kidding - it was WAY easier than I expected! The site automatically pulled my HSA contribution amount from my W-2 (it was in Box 12 with code W) and created the 8889 form without any extra charges. The whole process was actually faster than TaxAct too since it pulled most of my info directly from my tax documents. Just wanted to come back and say thanks for the recommendation - saved me about $80 compared to what TaxAct wanted to charge!

I had similar issues with tax software suddenly charging more for basic forms. After spending HOURS trying to get through to the IRS for a question about my HSA reporting, I found a service called Claimyr (https://claimyr.com) that actually got me through to a live IRS agent in about 15 minutes. They have a cool demo video showing how it works: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that HSA contributions through employer payroll should be reported on Form 8889, but you definitely don't need to pay premium prices to file it. They suggested several free filing options through the IRS Free File program that include HSA forms.

I have to publicly eat my words. After being completely skeptical about Claimyr, I decided to try it because I was desperate to talk to someone at the IRS about my HSA reporting questions. The service actually worked exactly as described - I got a call back in about 20 minutes connecting me directly to an IRS agent. The agent confirmed that I didn't need to pay extra just to file Form 8889 for my HSA contributions, and suggested using the IRS Free File program where several providers will handle HSA forms at no cost if your income is under $73,000. For those with higher income, she recommended FreeTaxUSA which handles HSA forms without charging premium fees. Definitely saved me hours of frustration and helped me avoid paying that unnecessary TaxAct fee!

Has anyone tried H&R Block for HSA contributions? I'm wondering if they charge extra for Form 8889 too or if it's included in their basic package.

I've been using TurboTax for years and they pull the same trick with HSAs. Started using FreeTaxUSA two years ago and never looked back. They include Form 8889 in their standard package which is completely free for federal filing. You only pay like $15 for state filing which is way cheaper than the $110 TaxAct is trying to charge you. The interface isn't as pretty as TurboTax or TaxAct but it gets the job done and doesn't try to upsell you for every little form.