How do I figure out why I have a Schedule 3 form?

[wkjones1997]

I am trying to complete my taxes and it is saying that I have to upgrade to TurboTax Deluxe because I have a Schedule 3, Nonrefundable credit.

[ChristieB]

Schedule 3 is a new form introduced by the IRS as part of the 2018 tax reform that reports the Nonrefundable Credits on your tax return. It is transferred from this form to your Form 1040, line 12 and includes Nonrefundable Education Credits, the Child and Dependent Tax Credit, and the Retirement Savings Contributions Credit. 

I have attached a screenshot below that shows the items that are included. 

**Edited to add: You can view a preview of your Schedule 3 with your specific credits listed if you take the steps below: 

When logged into TurboTax Online:

1.) On the left-hand side of your return, click Tax Tools

2.) Click Tools

3.) On the window that pops up, click View Tax Summary

4.) On the left-hand side of your screen, click Preview My 1040

If you scroll down, you will see a section called Schedule 3. The amounts of the items you qualify for will be listed here. 

[Teamnosleep239]

Is there a way to get rid of the schedule 3 on my tax return beside upgrading to the Deluxe version so that I can file? It's the only thing getting in the way of me filing for my return. 

[BillM223]

Schedule 3 is automatically generated by TurboTax as part of the 1040 if you have any of a number of credits or other payment or refundable credits. If you have one of these items, then the IRS requires the form.

Items on Schedule 3 include:

• Credit for child and dependent care expenses
• Education credits
• Retirement savings contributions credit
• Residential energy credits
• Net premium tax credit
• and other payments and credits

You can see a copy of the IRS form for Schedule 3 at the IRS website.

If you manage to remove Schedule 3, it will be because you removed a credit that you deserved, thus increasing your tax or reducing your refund.

[Teamnosleep239]

Do you know of a way to remove the schedule 3 from my return? 

[DoninGA]

---

@Teamnosleep239 wrote:

Do you know of a way to remove the schedule 3 from my return? 

---

Look at your tax return Form 1040 and any associated schedules.  If you have an amount entered on Schedule 3 it cannot be deleted.

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

To delete a form or schedule - Click on Tax Tools.  Click on Tools.  Click on Delete a form

[BillM223]

If you manage to remove Schedule 3, it will be because you removed a credit that you deserved, thus increasing your tax or reducing your refund.

Schedule 3 is automatically generated by TurboTax as part of the 1040 if you have any of a number of credits or other payment or refundable credits. If you have one of these items, then the IRS requires the form.

Items on Schedule 3 include:

• Credit for child and dependent care expenses
• Education credits
• Retirement savings contributions credit
• Residential energy credits
• Net premium tax credit
• and other payments and credits

You can see a copy of the IRS form for Schedule 3 at the IRS website.

[DragonWolfox]

Still doesn't explain why turbo tax put me into the schedule 3 category when I don't have these so called funds, nor do I have any type of savings plan or tax credits.

[AnnetteB6]

If TurboTax is including Schedule 3 as part of your return then there is something that you have entered that is triggering it.  Additional forms are added to your return only if they are necessary, or if they increase your refund or lower your balance due.  

The most likely situation is that there is a retirement plan contribution being reported on your W-2 in box 12, such as a 401k contribution.  This could qualify you to claim the Saver's Credit, which is ultimately reported on Schedule 3.

You will need to go through the Saver's Credit section in Deductions and Credits to answer a few more questions to be sure you are eligible to claim the credit.  If you are not eligible, then it will not be included on Schedule 3.

@DragonWolfox 

[DragonWolfox]

Thanks for further explaining more difficulties.  As I typed, I have already done all those check lists and opted out for those credits. Still it showed I get a 46 dollar credit but I have to pay 49 dollars just to get it. 

So the complete idiotic math is pay 3 dollars to get nothing of a credit. Still doesn't make any lick of sense to charge me any money just to qualify for any little bit of tax credit or tax break when my main break/credit is the standard deduction.

FYI, I've unchecked the box stating it had anything to do with retirement and the simple e-file completed and went through successfully. Tax form information stated if box 12b (not 12, 12a, 12c, or 12d) is filled, then foreign contributions inheritance and other paid currencies will apply for the schedule 3 attachment.

I've tried the section of deductions and credit savings, it still showed the anonymous tax credit.

Another thing, retirement 401k should not be treated like a health savings plan or other bank account when 401k will still be taxed when withdrawn even if your at retirement age.

I type this text from experience, by being a victim of circumstances. Now if this doesn't apply to you, then you're part of the problem. I solve problems, by being a solution, moving forward out from the problem to resolve it.

Again, thank-you.

What can I say? It's OK to say your welcome.