Do I have to upgrade to Deluxe because I have an HSA? It prompted so but I don't know why.

[daisie115]

Thank you for the suggestion! I will use FreeTaxUSA for my returns this year.

I also find it slimey that because I've made contributions to my HSA, suddenly it's a deluxe-tax type situation. From what I understand, HSA contributions are common for most people with a high deductible plan, so a BASIC service should also include this.

[Diaboli]

It is pretty scummy of this company to not clarify that you will need to upgrade based on having an HSA. What I noticed is that they wanted to charge me over $100 for state and federal. I went back and reviewed everything, and when I got back to filing, the upgrade price changed to $68. Is this a glitch? Scam to get people to just submit it to get it over with? It’s clearly intentional to throw this all at the end of filing because most people are just trying to get it out of the way. Disgusting tactics by this company for sure. 

[mattleroy11]

Goodbye TurboTax, scumbags trying to force us to upgrade for over $100, taking me all the way to the end of the process, only to say "Whoops, give us $100+ to file first".

[whimpyreader]

So I have been receiving this message saying to upgrade TurboTax since I had a Health Savings Account in 2024. Although i had the health savings account, I didn't even use it at all.  I was told that I didn't even have an excess contribution since the health savings account had been open and unused for 6 months. I have so many questions! How can I delete this upgrade message to go back to free filing if I didn't even use the HSA account? I haven't been able to complete my taxes because of this upgrade notification! Am I required to complete the 8889 form I saw in posts above this forum? if so, what is the 8889 form about, what information is needed? Thank you in advance to those who reply back to this post! 

[DawnC]

TurboTax requires the upgrade because you qualify for the Retirement Savings and Contribution (Saver's) Credit.   You can qualify for the credit if you made contributions to a retirement plan, including an HSA account.   You probably have contributions to a 401K or HSA on your W-2.   Having the HSA account does not require an upgrade, but the credit does.  

You qualify for the Saver's credit if you’re:

• 18 or older
• Not a full-time student
• Not claimed as a dependent on someone else’s return

Saver's Credit

Depending on what your tax situation was last year, you might need to use new tax forms to claim the same deductions, credits, or forms of income.  Some of the situations that are now in TurboTax Deluxe include:

• Unemployment income
• Retirement Savings Contribution Credit for 401(k) and IRA contributions and HSA contributions too.
• Education credits

Get more information on which forms are included in TurboTax Free Edition.  @whimpyreader 

You can delete Form 8880 from your return, but if you qualify for the credit, it will re-generate.  

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop

How to downgrade to a different TurboTax Online product.