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New Member
posted Jun 5, 2019 3:32:25 PM

Can I use the free software if I have an HSA which my Company withholds all contributions, and I didn't spend out of the account this year?

0 20 26119
20 Replies
Expert Alumni
Jun 5, 2019 3:32:26 PM

No, the HSA entries are require an upgrade to TurboTax Deluxe version even if no money was used from the account.

  • In the search box, upper right type hsa > jump to hsa > 
  • Continue to make the required entries about your health savings account (HSA)
  • Click the screenshots attached to enlarge and view for assistance.

For more information about this entry review the information below.

https://ttlc.intuit.com/replies/4557768

New Member
Jul 5, 2020 11:31:29 AM

I filed for like 4 years for free, with an HSA.  I also DO NOT pay for TurboTax, as I am remarkably cheap.

Level 15
Jul 5, 2020 11:33:17 AM

There are 2 free versions. In the regular Turbo Tax Free Edition, information that you can enter is limited now.  Why do I have to upgrade from the Free Edition?
https://ttlc.intuit.com/community/upgrading/help/why-do-i-have-to-upgrade-from-free-edition/00/26379

To go back to a lower version or the Free Edition you can try to clear and start over https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-clear-and-start-over-in-turbotax-online/00/26444

OR There is also The Turbo Tax Free File program which is free for federal and state.  And has more forms than the Federal Free Edition, like Schedules A, B, C , D, E, F, EIC, H, K-1, SE,  etc.

To qualify for the Free File website  you just need to meet one of these 3 things
AGI $36,000 or less
Active duty military with AGI of $69,000 or less
OR qualify for EIC (earned income credit.)

In order to use the Free File program, you have to start it at a special website. Try signing in at the top right
https://freefile.intuit.com/

New Member
Feb 2, 2021 10:08:27 AM

Nothing but grift, these scumbags are required by law to offer free filing an HSA doesn't change that reporting this to the fed.

Level 15
Feb 2, 2021 10:12:47 AM

They do offer free filing.  2 ways.  Either the regular Free Edition or as one of the IRS Free Filing.

 

There is The Turbo Tax Free File program which is free for federal and state.  And has more forms than the Federal Free Edition, like Schedules A, B, C , D, E, F, EIC, H, K-1, SE,  etc.

 

To qualify for the Free File website  you just need to meet one of these 3 things

AGI $39,000 or less

Active duty military with AGI of $72,000 or less

OR qualify for EIC (earned income credit.)

 

In order to use the Free File program, you have to start it at a special website.  Click on Sign in at the top right.  It may let you continue your return so you don't have to start over.

https://freefile.intuit.com/

New Member
Mar 11, 2021 2:25:40 PM

The fact that you have to use a special URL to access the program as a returning user is total BS and mostly a way for Intuit to scam us out of $110 filing fee. 

I for one will not return to use Intuit in the future if they continue to require "deluxe version" to file if you have a simple HSA.

New Member
Apr 10, 2021 7:47:03 PM

Thank you so much, genuinely.

New Member
Jan 16, 2022 12:20:24 PM

I just tried the IRS Free File Program link.  Intuit no longer participates, so it is no longer an option.

Level 15
Jan 16, 2022 12:26:19 PM

There are eight other software programs on the Free File site---but TurboTax is not one of them.   You do not have to use TurboTax.

 

-Use this IRS site for other ways to file for free.  There are 8  free software versions available from the IRS Free File site

 

https://apps.irs.gov/app/freeFile/

Level 2
Feb 4, 2022 2:30:52 PM

Why does Turbotax require an upgrade to Turbotax Deluxe when an HSA is reported? That doesn’t make any sense! Is there a way to get around paying for Deluxe if I want to file with Turbotax but have an HSA?

Expert Alumni
Feb 4, 2022 2:49:11 PM

The TurboTax Free or Basic edition is only for "simple returns" (see the subheading at the entry page for TurboTax).

 

Click on "Simple tax returns only" on the upper left of that link to see an explanation of what is and is not in the Free or Basic return. Since reporting activity in an HSA requires form 8889 and may make entries on Schedules 1 through 3, this is not considered a simple return.

 

@amyheckman

 

 

Level 2
Feb 4, 2022 4:07:56 PM

I’m an accountant and that literally makes no sense whatsoever. An HSA is one of the most simplest thing i’ve ever encountered. Considering an HSA typically goes along with a high deductible health insurance plan, which is usually elected by low-income individuals, this seems exactly like classism and discrimination. Turbotax should be ashamed of themselves and I will never use this service again and I will make sure everybody I know will never use it again.

Level 1
Feb 11, 2022 12:07:44 AM

I will no longer be using turbotax. This charge is absolutely too much and just greedy on Turbotax's end. There are many better alternatives that allow me to file taxes even with an HSA. shame.

Level 15
Feb 11, 2022 6:40:11 AM

@amyheckman 

 

@Arash Amiri 

 

"Simple" return means a return that requires only a Form 1040 and none of the extra schedules.   

 

*A simple tax return is Form 1040 only.

Situations covered in TurboTax Free Edition include:

  • W-2 income
  • Limited interest and dividend income reported on a 1099-INT or 1099-DIV
  • Claiming the standard deduction
  • Earned Income Tax Credit (EIC)
  • Child tax credits
  • Student Loan Interest deduction

Situations not covered in TurboTax Free Edition include:

  • Itemized deductions
  • Unemployment income reported on a 1099-G
  • Business or 1099-NEC income
  • Stock sales
  • Rental property income
  • Credits, deductions and income reported on schedules 1-3

Level 2
Feb 11, 2022 7:50:08 AM

That does not change the fact that this rule doesn’t make any sense whatsoever. Turbotax is charging users with an HSA because they are a terrible and greedy corporation.

New Member
Mar 20, 2022 4:49:13 PM

I wish I did more research! I'll never use turbo tax again. All because of an HSA I had to pay $108 and then they wanted to charge me another $39 to pay them using my tax return instead of "pulling out my wallet". F this company and they should be sued. Partly my fault for not doing the research. Scumbags!!

New Member
Apr 18, 2023 10:40:35 AM

   The most obnoxious part of their system is that it doesn't tell you that you have to upgrade (now $60) until THE END of the entire process of answering questions, checking, completing State questionnaires, set a filing PIN, etc.  Only at the point when I clicked "File Now", one month ago, did it tell me "Oops, you don't have a simple return!  $60 please!"  After I had spent the two hours filling everything in.  Meanwhile, it knew that I filled out the offending box in my W2 from the first step when it downloaded it from the payroll company.

 

If it had told me right up front that "you are not eligible for free filing, you will have to pay $60 to file", I would have had the option at that time to consider alternatives before investing the time inputting into TT itself.  But they play this game, AFTER you've invested your time, and you don't have the energy to go through it again.  A Bait and Switch.

New Member
Apr 18, 2023 11:32:01 AM

Oh, and it WASN'T ONLY $59.  It was $59 for Fed + $54 State ... and that nonsense about paying the fees with a portion of your federal return?  Oh, that's just another $39 fee.  That's all!  They don't even tell you about the last two until AFTER you've decided to go for the $59 fee.

 

All because my employer decided that the low wage workers be on a High Deductable Plan and they would make HSA contributions (new this year) to make up for it.  So nice.

 

Such an "uncommon" situation, that TT decides we should spring for Deluxe to file ... and only tells you AFTER we've input all the information and answered all the questions - everything prior to entering a credit card to pay for it.  Thanks for being "transparent" about your fees!

New Member
Apr 6, 2025 6:58:26 PM

Was this ever answered? I'm currently dealing with this.

Level 15
Apr 7, 2025 5:51:25 AM

@baileythomsen You posted to a thread that has had no activity for two years.   Are you having issues with the fees?

 

How can I see my TurboTax  fees? 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/review-fees-turbotax-online/L1XnIzgzg_US_en_US?uid=m682vq7k

 

If your TurboTax fees are higher than expected, you can reduce them by removing add-ons     (BEFORE you e-file) :

 

 

 

  If you started in the Free Edition and entered any data that required any extra forms or schedules, you have to upgrade to a paid version and if you are watching the screens carefully you are alerted to the upgrade.

 

 

 

TurboTax Online: Important Details about Filing Simple Form 1040 Returns

If you have a simple Form 1040 return only (no forms or schedules except as needed to claim the Earned Income Tax Credit, Child Tax Credit or student loan interest), you can file for free yourself with TurboTax Free Edition, or you can file with TurboTax Live Assisted Basic at the listed price. Roughly 37% of taxpayers are eligible.

Examples of situations included in a simple Form 1040 return (assuming no added tax complexity):

  • W-2 income
  • Interest, dividends or original issue discounts (1099-INT/1099-DIV/1099-OID) that don’t require filing a Schedule B
  • IRS standard deduction
  • Earned Income Tax Credit (EITC)
  • Child Tax Credit (CTC)
  • Student loan interest deduction
  • Taxable qualified retirement plan distributions
  •  

Examples of situations not included in a simple Form 1040 return:

  • Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest and state and local tax deductions
  • Unemployment income reported on a 1099-G
  • Business or 1099-NEC income (often reported by those who are self-employed, gig workers or freelancers)
  • Stock sales (including crypto investments)
  • Income from rental property or property sales
  • Credits, deductions and income reported on other forms or schedules 
  • 1095A for marketplace health insurance

 

 

Or—-Use this IRS site for other ways to file for free.  There are 8  free software versions available from the IRS Free File site

 

https://apps.irs.gov/app/freeFile/

 

Or—if you live in certain states you may be eligible to use the new IRS Direct File

 

 

In Filing Season 2025, Direct File will be available in Alaska, Arizona, California, Connecticut, Florida, Idaho, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin, and Wyoming. 

 

https://directfile.irs.gov/

 

https://home.treasury.gov/news/press-releases/jy2629