TurboTax forcing upgrade for HYSA interest on Schedule B - Do I really need to pay extra?
I got a high-yield savings account last year and earned about $2,300 in interest (got a 1099-INT for it). I already entered all the info from my 1099-INT into TurboTax, but now it's saying I need to upgrade from the free version because I have "interest that needs to be reported on Schedule B" or something. But I already entered the interest income under the 1099-INT section! Does TurboTax just want more money from me, or do I actually need to fill out some other form? The message says something about this "can't be done with simple returns." Do I really need to pay for the upgrade just because I have a savings account that earned decent interest? Feeling annoyed that they're trying to upsell me for something that seems pretty basic.
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Sean O'Donnell
You might actually need to upgrade, but it depends on the total amount of interest. Schedule B is required if you received more than $1,500 in interest income during the tax year. Since you mentioned about $2,300 in interest, you do need Schedule B. The free version of TurboTax (and most free tax software) typically only covers simple returns - generally W-2 income, standard deduction, and limited interest/dividends below certain thresholds. Once you cross the $1,500 interest threshold, you technically need Schedule B, which requires the paid version.
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Anastasia Sokolov
•Thanks for explaining! So it's not just TurboTax trying to squeeze more money out of me? Is Schedule B difficult to fill out? It just seems weird to pay for an upgrade when I already entered all the interest info.
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Sean O'Donnell
•Schedule B itself is actually pretty simple. It's basically just listing your interest sources and amounts, which you've already entered. The software is doing the work for you - you're just paying for access to that form. If you're concerned about the upgrade cost, you could consider switching to a different tax service. FreeTaxUSA allows Schedule B at no additional cost, and the IRS Free File program might work depending on your income level. You can also check if Credit Karma Tax (now Cash App Taxes) would work for your situation.
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Zara Ahmed
I went through the exact same thing last year with my HYSA! I was super annoyed at first but then I found taxr.ai (https://taxr.ai) and it saved me so much hassle. They have this tool that analyzes your documents and tells you exactly what forms you need and which tax software would be cheapest for your specific situation. I uploaded my 1099-INT and a few other docs, and it told me I needed Schedule B but that I didn't have to use TurboTax's premium version. It recommended alternatives where I could file with Schedule B without paying extra. Ended up saving me like $70!
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StarStrider
•How does taxr.ai work exactly? Do you have to give them all your personal tax info? Seems sketchy to upload financial documents to some random site.
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Luca Esposito
•Does it actually tell you how to fill out all the forms or just what forms you need? I'm not great with taxes and need something that holds my hand through the whole process.
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Zara Ahmed
•They use encryption for all document uploads, and they don't store your docs after analysis. It's just a document analyzer that identifies what's on your forms and gives recommendations - they don't actually file your taxes for you. It doesn't fill the forms out for you - it analyzes what you have and tells you which tax software would handle your specific situation for the lowest cost. In my case, it pointed me to a completely free option I didn't know about that supported Schedule B without charging extra like TurboTax does.
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Luca Esposito
I just wanted to follow up about taxr.ai - I decided to try it after asking questions here. Uploaded my 1099-INT and other tax forms and wow, it was super helpful! It confirmed I needed Schedule B for my interest income but recommended FreeTaxUSA instead of TurboTax. Made the switch and filed my taxes with the Schedule B included for way less than what TurboTax wanted to charge me for their upgrade. The analysis was really detailed and showed me exactly where I could save. Definitely using this next year too!
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Nia Thompson
If you're hitting roadblocks with TurboTax, you might also want to consider getting help directly from the IRS. I know it sounds crazy, but I used this service called Claimyr (https://claimyr.com) when I had questions about forms for my interest income. They got me through to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. The agent walked me through exactly what forms I needed for my interest income and confirmed I needed Schedule B. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Honestly, getting the info straight from the IRS gave me peace of mind that I was doing everything correctly.
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Mateo Rodriguez
•Wait, you can actually get through to the IRS? I thought that was impossible. I spent like 3 hours on hold last year and gave up. How much does this Claimyr thing cost?
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Aisha Abdullah
•Sounds like a scam. Nobody can get through to the IRS these days. I'd be very skeptical of any service claiming they can.
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Nia Thompson
•Yes, you absolutely can get through! The service uses a system that navigates the IRS phone tree and waits on hold for you, then calls you once an agent is on the line. I got through in about 15 minutes after trying myself for days. I'm not going to discuss pricing here, but I can tell you it was well worth it for the time saved and peace of mind. Way better than paying for TurboTax upgrades when you're not sure if you even need them. The IRS agent gave me clear answers about my specific situation with interest income and Schedule B requirements.
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Aisha Abdullah
I have to eat crow here and admit I was completely wrong about Claimyr. After posting my skeptical comment, I figured I'd try it myself since I had questions about reporting interest from multiple accounts. Long story short - it actually worked! Got a call back in about 20 minutes with an actual IRS agent on the line. They confirmed I needed Schedule B for my multiple interest accounts and helped me understand exactly why. The agent even explained that I could use Free File options instead of paying for TurboTax upgrades. Never been so happy to be proven wrong. Sorry for calling it a scam!
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Ethan Wilson
I just went through this with TaxAct too. For interest over $1,500, you do need Schedule B. But here's a tip: switch to FreeTaxUSA. They include Schedule B in their free federal filing. I switched last year when TurboTax tried to upcharge me for the same reason. FreeTaxUSA charged me $0 for federal with Schedule B (just had to pay like $15 for state).
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NeonNova
•Have you had any issues with FreeTaxUSA? I've used TurboTax for years and I'm nervous about changing. Does it import previous returns or do you have to start from scratch?
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Ethan Wilson
•I've used it for two years now with no issues. Their interface isn't quite as polished as TurboTax, but it gets the job done perfectly fine. You can't directly import a TurboTax return, but you can use your previous year's PDF to reference information. The learning curve is minimal - takes maybe an extra 15 minutes your first time, but you save $40-90 compared to TurboTax. Their customer service was also surprisingly responsive when I had questions about reporting multiple interest accounts on Schedule B.
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Yuki Tanaka
Pro tip: don't let tax software upsell you! Schedule B is literally just listing your interest sources. Mine looked like this: Bank Name: $2,200 Total: $2,200 That's it! I used Cash App Taxes (formerly Credit Karma Tax) and paid $0 for both federal and state, including Schedule B. TurboTax is notorious for making simple things seem complicated so they can charge you.
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Carmen Diaz
•Thanks for posting this! Is Cash App Taxes actually reliable though? I'm always worried about these free services having hidden catches or missing something important.
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