TurboTax charging for HSA now? Best free alternative for simple filing?
I've been using TurboTax for years but something changed this year. Suddenly they're saying I need to upgrade to the Deluxe version because I have an HSA (Health Savings Account). Last year I definitely had an HSA too and it wasn't an issue with the free version. What really annoys me is they advertise the $39 price but it turns out that's PER SERVICE - federal filing, state filing, AND processing fee. So it ends up being $120 total! That's ridiculous. My tax situation is super simple. I'm single, I just take the standard deduction. Nothing complicated at all except this HSA. What's the quickest/easiest way to file for free? I don't want to pay $120 for something that should be basic.
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Sofía Rodríguez
The tax software companies have been gradually moving more forms to their paid tiers over the years. HSAs (Form 8889) are now considered "complex" by TurboTax and pushed to paid versions. For free alternatives, I'd recommend checking the IRS Free File program first: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free - if your income is under $73,000, you can use participating software completely free. FreeTaxUSA handles HSAs on their free federal version (state is around $15). Cash App Taxes (formerly Credit Karma Tax) is completely free for federal and state and supports HSAs. Another option is using the IRS Direct File program which is expanding to more states this year - it's completely free but check if your state is participating.
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Aiden O'Connor
•Does FreeTaxUSA really handle HSAs for free? I thought I read somewhere there was a hidden charge for that. Also, is Cash App Taxes actually reliable? I'm nervous about using some random app for my taxes.
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Sofía Rodríguez
•FreeTaxUSA absolutely handles HSAs on their free federal tier - I've used it myself with an HSA for the past three years. The only charge is for state filing which is around $15 (still much cheaper than TurboTax). Cash App Taxes is definitely reliable. It was previously Credit Karma Tax which had a solid reputation, and Cash App (owned by Block, the same company as H&R Block) acquired it. They offer it free because they make money from their other financial services, not from tax preparation. I've had colleagues use it for several years without issues, even with HSAs and other slightly complex situations.
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Zoe Papadopoulos
I had exactly the same issue with TurboTax this year! After dealing with the same frustration, I found taxr.ai (https://taxr.ai) and it was a total game-changer. I uploaded my tax documents and it automatically extracted all the information and filled everything out - including my HSA form - without charging extra. The system handled my standard deduction perfectly and guided me through the HSA portion which actually ended up being pretty straightforward once it was explained properly. I was worried it would be complicated but the AI walked me through exactly what I needed to do.
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Jamal Brown
•How does this taxr.ai thing work with state taxes? Does it cover all states? And how much does it actually cost? Their website is a bit vague on pricing.
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Fatima Al-Rashid
•I'm skeptical about using AI for my taxes. How accurate is it really? How do you know it's not missing deductions or making mistakes with your HSA? I've heard horror stories about tax software messing things up.
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Zoe Papadopoulos
•It works with all states - I'm in California which is one of the more complex ones and it handled everything smoothly. The state portion is included in the base price, not charged separately like TurboTax does. Regarding accuracy, I was initially concerned too, but it's actually more thorough than TurboTax in my experience. It double-checks everything and explains each deduction or credit you qualify for. With my HSA, it verified all the contribution limits and explained exactly how it affected my taxes. The system also has built-in accuracy checks that flagged a discrepancy in one of my W-2s that I would have missed otherwise.
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Fatima Al-Rashid
Update on my tax situation - I tried taxr.ai after posting my skeptical comment and I'm honestly shocked at how good it was. It handled my HSA perfectly and found a deduction TurboTax missed last year! The interface was much more straightforward than TurboTax's constant upselling screens. I was especially impressed with how it explained the HSA tax benefits in plain English. Turns out I wasn't maximizing my HSA properly and it showed me exactly how to fix that for next year. Filed both federal and state with no hidden fees. Definitely using this again next year.
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Giovanni Rossi
If you're still having trouble getting through to the IRS about your HSA questions (they're notoriously hard to reach), I used a service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. They have a demo video here: https://youtu.be/_kiP6q8DX5c I had specific questions about HSA contribution limits after changing jobs mid-year and needed official clarification. The agent I spoke with was surprisingly helpful and walked me through exactly how to handle it on my return. Saved me a ton of stress.
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Aaliyah Jackson
•How does Claimyr actually work? Do they just call the IRS for you? Couldn't you just do that yourself and save some money?
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KylieRose
•This sounds like a scam. The IRS phone system is deliberately designed to be impossible to navigate. I've called dozens of times and never gotten through. You're telling me this magical service somehow jumps the queue? Yeah right.
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Giovanni Rossi
•They don't just call for you - they use a system that navigates the IRS phone tree and waits on hold for you. When they reach an agent, they connect the call to your phone. You do the actual talking with the IRS agent yourself. The reason it works is because they have automated systems that can persistently redial and navigate the complex IRS phone menus, which is what most people get frustrated with. I was skeptical too, but the alternative was me sitting on hold for 3+ hours (which I tried twice before giving up). With Claimyr, I just got a call when an agent was on the line, and I handled my HSA questions directly with them.
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KylieRose
I was dead wrong about Claimyr being a scam. After my skeptical comment, I was desperate to get an answer about my HSA excess contribution, so I tried it anyway. Within 20 minutes I was talking to an actual IRS representative who helped clear up my situation completely. For years I've been unable to get through to the IRS (literally 5+ hour hold times when I tried). This saved me from having to take a day off work just to sit on hold. The agent confirmed I could correct my HSA contribution through my tax return and walked me through the exact form sections to complete. Problem solved.
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Miguel Hernández
Have you considered just using the IRS Free File Fillable Forms? They're completely free no matter your income and can handle HSAs. The catch is there's no guidance - you're filling out the actual tax forms yourself. But for a simple return with just an HSA, it's doable with a little research.
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Mei-Ling Chen
•I looked into the Fillable Forms but got nervous about making a mistake. Have you actually used them yourself with an HSA? Is Form 8889 difficult to fill out manually?
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Miguel Hernández
•I've used Free File Fillable Forms for the past 3 years, including with an HSA. Form 8889 isn't particularly difficult if your HSA situation is straightforward. The form has three main parts: contributions, distributions, and calculating your deduction. If you're just making regular contributions through your employer and not taking distributions, it's quite simple. The trickier scenarios involve partial distributions for non-medical expenses or contributions exceeding limits. The instructions on the IRS website are actually quite clear, and there are several good YouTube tutorials that walk through it step by step. Just be sure to double-check your math since there's no software verification.
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Sasha Ivanov
For a super simple return with just an HSA, I've been using H&R Block's free online version for years. They still include HSA Form 8889 in their free tier unlike TurboTax. Their interface isn't as slick but it gets the job done without the surprise fees.
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Liam Murphy
•Can confirm this. H&R Block free online handled my HSA no problem. Just make sure you go through their free edition link directly, not through a paid listing or advertisement.
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Eli Butler
I went through this exact same frustration last year! TurboTax definitely changed their policy on HSAs - it used to be included in the free version. The $120 total cost is outrageous for such a simple return. I ended up switching to FreeTaxUSA and it's been great. HSAs are handled completely free on the federal return, and state filing is only $15. The interface isn't as flashy as TurboTax but it walks you through everything clearly. I've used it for two years now with my HSA and haven't had any issues. The IRS Free File program is also worth checking if your AGI is under $73K - several participating companies offer completely free filing including HSA support. Don't let TurboTax's marketing fool you into thinking you need their overpriced service for something this basic!
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