I don't have Schedule B form but website keep showing "You have Interest and/or Dividends on a Schedule B" and wants to force me to upgrade to Deluxe

Schedule B is a form used with IRS Form 1040 to report interest and ordinary dividends. You need to file Schedule B if you have more than $1,500 in taxable interest or ordinary dividends, among other specific situations.

Why Schedule B might be created based on a 1099-INT or 1099-DIV:

• 1099-INT: This form reports interest income you received during the year. If you earned more than $1,500 in interest from sources like savings accounts, certificates of deposit (CDs), or bonds, you'll need to report this on Schedule B.
• 1099-DIV: This form reports dividends and distributions you received from investments. If you earned more than $1,500 in ordinary dividends, you'll need to report this on Schedule B.

If these situations don't apply to you, you can try the following steps to remove the Schedule B form prompt in TurboTax:

1. Go to the Income section: Navigate to the section where you entered your interest and dividend information.
2. Click the pencil icon: Next to the forms (1099-INT or 1099-DIV), click the pencil icon to edit the entries.
3. Delete the entries: Click the trash can icon to delete any entries that might be triggering the Schedule B requirement.

Am I understanding this correctly? Because I have (slightly) more than $1500 in interest income, I have to upgrade to the Deluxe edition for $79 AND pay $64 more for the state form? That's robbery!

Yes, Schedule B is not included in the Free Edition of TurboTax.   It is an IRS requirement - See IRS About Schedule B

Forms included with Free  @WHWofford