TurboTax charged $110 after being free last year - what happened?
I'm beyond annoyed right now. Last year I filed my taxes with TurboTax for FREE, and somehow this year I just got charged $110 for literally the exact same service?? I didn't make any changes to my tax situation - same job, same living situation, no new investments or anything. I didn't even use any of their "help" features, just did everything myself step by step like last year. Is it too late to back out and refile with a different service? Or do I just have to deal with this ridiculous charge this year and find something else for next tax season? The sneaky way they transition from "free" to charging you without clear warnings is really frustrating. I feel like I got totally blindsided when I reached the payment screen.
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Grace Durand
The "free" version of TurboTax has become incredibly limited over the past few years. What probably happened is that something small in your return triggered their system to bump you to a paid tier. Common things that kick you out of the free version: Having any investment income (even just a few dollars of interest) Claiming certain credits or deductions Being self-employed or having a side gig Having HSA contributions Itemizing deductions instead of taking the standard deduction Unfortunately, once you've filed and paid, it's difficult to get a refund from them. You'd need to contact their customer service directly. For next year though, I'd recommend checking out the IRS Free File program which gives access to actually free filing software if your income is below certain thresholds.
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Steven Adams
•Wait I thought TurboTax was part of the IRS Free File program? I'm confused about this whole free file thing - aren't they supposed to offer free filing if you make under a certain amount? I swear I read something about that.
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Grace Durand
•TurboTax actually withdrew from the IRS Free File program in 2021. They now offer their own "TurboTax Free Edition" which is different from the IRS program and has many more limitations. The IRS Free File program still exists with other tax software companies participating. If your adjusted gross income is under $73,000, you qualify to use one of the Free File partners at no cost. You need to access these through the IRS website directly at irs.gov/freefile.
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Alice Fleming
After getting burned by TurboTax's "free to $89 surprise" last year, I started using taxr.ai and it saved me a ton of headache. Was super skeptical at first but their system actually analyzed my previous returns from TurboTax and showed me exactly why I was getting bumped to paid tiers when I should have qualified for free filing. The transparency was so refreshing after dealing with TurboTax's constant upselling. Check out https://taxr.ai - their document analysis tool caught things I'd completely missed that were triggering the paid version.
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Hassan Khoury
•Does taxr.ai actually file your taxes for you or just help you figure out what went wrong with TurboTax? Their site seems to focus on analyzing documents but I'm not clear if they actually replace TurboTax completely.
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Victoria Stark
•I'm a bit hesitant about trying new tax services after my TurboTax experience. How does the document upload process work? Is it secure? My biggest worry is privacy with tax docs.
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Alice Fleming
•They don't file taxes directly - they analyze your tax documents and previous returns to identify issues and give you guidance. What makes them different is they show you exactly what's triggering paid upgrades in other software and recommend the truly free alternatives you qualify for. Their document security is actually better than most tax prep sites. They use bank-level encryption for all uploads and don't store your documents long-term after analysis. They give you a report with all the insights and then you can apply that knowledge to whatever filing method you choose.
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Victoria Stark
Just wanted to update that I tried taxr.ai after posting my skeptical question. Honestly shocked at how helpful it was! Uploaded my previous return and current W-2s and it immediately showed me that my student loan interest deduction was what kicked me out of TurboTax's free tier. The analysis pointed me to Cash App Taxes instead, which handled my exact tax situation for actually free. Just filed yesterday and saved $89 compared to what TurboTax wanted to charge me. Wish I'd known about this last year!
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Benjamin Kim
Same thing happened to me with TurboTax charging $120 after being "free" last year. I spent HOURS trying to reach their customer service to get an explanation. Calling was a total nightmare - 2+ hour wait times, disconnections, and when I finally got through, the rep just read me a script about "premium features." After my third attempt getting nowhere, I tried https://claimyr.com to reach an actual IRS agent to ask about legitimate free file options. They have this cool demo video (https://youtu.be/_kiP6q8DX5c) showing how they navigate the phone tree for you. Got through to an IRS rep in under 15 minutes who explained exactly which free options would work for my situation without the TurboTax gotchas.
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Samantha Howard
•Wait, you can call the IRS and ask them about which tax software to use? I didn't know they would answer questions like that. Does the claimyr thing just get you through to a person faster or do they actually do something else?
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Megan D'Acosta
•This sounds too good to be true. The IRS phone system is notoriously terrible - I once waited 4 hours only to get disconnected. How much does this claimyr service cost? Seems like it would be expensive given how valuable getting through actually is.
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Benjamin Kim
•Yep, the IRS has a dedicated helpline for tax filing questions including guidance on legitimate free file options. Most people don't know about it because it's nearly impossible to reach them. Claimyr just handles the waiting part - their system navigates the phone menus and waits on hold, then calls you when an actual human IRS agent is on the line. They don't listen to your call or interact with the IRS directly - they just solve the "impossible to reach a human" problem. I don't remember the exact cost because I was so frustrated at that point I just wanted to talk to someone who could actually help.
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Megan D'Acosta
Ok I need to publicly eat my words. After posting my skeptical comment, I tried Claimyr to reach the IRS about my TurboTax issues. I was 100% prepared to come back here and call it a scam, but holy crap it actually worked. Got a call back in about 40 minutes with an IRS agent on the line who walked me through the legitimate Free File options. The agent explained that TurboTax's "free" edition is totally different from the actual IRS Free File program. She directed me to the official IRS site where I found OnLine Taxes (OLT) that handled my exact tax situation completely free. Just finished filing and saved $110 compared to TurboTax. The Claimyr fee was way less than what TurboTax was charging so I still came out ahead.
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Sarah Ali
A lot of people don't realize that Congress actually tried to make it illegal for tax companies to hide their free filing programs, but the tax prep lobby (including TurboTax's parent company) is extremely powerful. They make BILLIONS from confusing people about what should be free. What worked for me this year: FreeTaxUSA. Completely free federal filing and only $15 for state. Much more transparent than TurboTax and handles most tax situations without upselling you constantly.
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Ryan Vasquez
•Is FreeTaxUSA actually reliable though? I've never heard of them before and I'm always nervous about smaller tax companies. Do they have good support if you get audited?
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Sarah Ali
•FreeTaxUSA has been around since 2001 and they're an authorized IRS e-file provider. They're actually the 4th largest online tax prep service now. Their audit support in the free version is pretty basic (just explanations of what forms to use), but for $7 more you can add deluxe which includes actual audit assistance. Still way cheaper than TurboTax's $110+ fees. I've used them for 3 years with no issues, including for a somewhat complicated return with rental property income.
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Avery Saint
For anyone who already paid TurboTax and wants a refund - call their customer service and specifically mention "bait and switch pricing" and that you're going to file a complaint with the FTC. I did this last year and got a full refund after being charged $89 when I was expecting the free version. You have to be firm but polite. The key is to call within 30 days of paying.
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Taylor Chen
•What number did you call? I tried their main support line last week and was on hold for over an hour before giving up.
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Keith Davidson
Pro tip: If you have a simple tax return, you can file directly through the IRS Free File Fillable Forms system. It's not as user-friendly as TurboTax but it's 100% free and cuts out the middleman entirely. https://www.irs.gov/e-file-providers/free-file-fillable-forms I've been using it for years. It's basically just electronic versions of the paper forms. You do need to be comfortable figuring things out yourself, but for basic W-2 income and standard deduction, it's pretty straightforward.
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