Tax Year Prior to 2020: What is Schedule 3, nonrefundable credit?

[CarolynM]

Schedule 3 is a new tax schedule that reports non-refundable tax credits. It must be filed in order to claim certain credits.

The tax credits on the form include:

Foreign tax credit

Credit for child and dependent care expenses

Education credits 

Retirement savings contributions credit 

Residential energy credit

For more information, follow this link: https://www.irs.gov/pub/irs-pdf/f1040s3.pdf

[kzbedmstn]

• Having to upgrade to deluxe because of schedule 3 nonrefundable credits? Not sure what that means. C...

• I do not pay child care or attend school. Why do i have to upgrade and it says i have Schedule 3, No...

• It is telling me that I need to upgrade. (You have Schedule 3, Nonrefundable credits, and that's jus...

[1Sgaines81]

I did my whole tax return and it will not let me submit it because of this issue is it that these forms aren't available yet or how do I do it for free is asking me to pay

[DoninGA]

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@1Sgaines81  wrote:

I did my whole tax return and it will not let me submit it because of this issue is it that these forms aren't available yet or how do I do it for free is asking me to pay

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You entered tax data that is not supported by the Free edition or you have a tax credit that is not supported by the Free edition.  Review your tax return for Schedule 3 and you will see an amount listed on the one of the lines.

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.

Or wait until mid-January and use the TurboTax Free File tax program if you are eligible.  The Free File Program edition is a full featured personal tax program and on a separate website from the TurboTax online editions - https://turbotax.intuit.com/taxfreedom/

[Kitty_4877]

I have no child care expenses or retirement savings why did I have to file a schedule 3?

[DoninGA]

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@Kitty_4877 wrote:

I have no child care expenses or retirement savings why did I have to file a schedule 3?

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Education Credit.  Residential Energy Credit.  Estimated tax payments.  Payment of 2019 taxes with a 2018 tax refund.  Tax payment made with an extension request.

IRS Schedule 3 - https://www.irs.gov/pub/irs-pdf/f1040s3.pdf

[Kitty_4877]

I didn't have any of those....still doesn't make any sense....I had none of those deductions on my taxes so why was I still charged for filing?

[DoninGA]

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@Kitty_4877 wrote:

I didn't have any of those....still doesn't make any sense....I had none of those deductions on my taxes so why was I still charged for filing?

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If you have paid and filed the 2019 tax return then look at your tax return.

To access your current or prior year online tax returns sign onto the TurboTax website with the userID you used to create the account - https://myturbotax.intuit.com/

Scroll down to the bottom of the screen and on the section Your tax returns & documents click on Show.  Click on the Year and Click on Download/print return (PDF)

Or -

When you sign onto your online account and land on the Tax Home web page, scroll down and click on Add a state. 

This will take you back to the 2019 online tax return.

Click on Tax Tools on the left side of the online program screen.  Then click on Print Center.  Then click on Print, save or preview this year's return.  Choose the option Include government and TurboTax worksheets

[bre3106]

Is there a way that I can choose whether to Claim Retirement savings contribution credit or not? I’ve only contributed $60 and I’m having to pay $80 to use deluxe version in order to file whereas I filed for free last year. 

[VictorW9]

Yes, the form 8880 to claim retirement savings contribution credit is included in schedule 3. I guess your contribution is already showing in your W-2. There is no way for you to omit the amount in your W-2. Hence, the system is forced to produce form 8880 and upgrade you to the Deluxe version.

[bre3106]

Turbo tax initially told me I’d be charged $40, but right before I was about to pay, the charge doubled to $80. Why the extra charge? 

[DoninGA]

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@bre3106 wrote:

Turbo tax initially told me I’d be charged $40, but right before I was about to pay, the charge doubled to $80. Why the extra charge? 

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Deluxe online edition for a federal tax return - $40

State tax return when using the Deluxe edition or higher - $40

Or you selected the option to pay the TurbTax account fees with the federal tax refund - service charge $40

See this TurboTax support FAQ for removing fees - https://ttlc.intuit.com/community/charges-and-fees/help/what-can-i-do-to-reduce-my-fees/01/26051

OR -

If you have not paid for the online edition you are using, have not filed your tax return or registered the Free edition, then you can clear your return and start over with a lower priced edition. Click on Tax Tools on the left side of the program screen while working on the 2019 online tax return. Click on Clear & Start Over.

OR -

IRS Free File Program - https://apps.irs.gov/app/freeFile/
If you are eligible you can use the TurboTax Free File Program which is free to file both a federal and state tax return. The Free File Program edition is a full featured personal tax program and on a separate website from the TurboTax online editions.

To qualify for free 2019 federal and state tax returns with the Free File Program, you'll need to meet at least one of these requirements:

• A maximum 2019 adjusted gross income (AGI) of $36,000; or
• You qualify for the Earned Income Tax Credit (EITC); or
• You served as active duty military (including Reservists and National Guard) with a maximum 2019 AGI of $69,000 (you'll also need a military-issued W-2).

See this TurboTax support FAQ on the Free File Program - https://ttlc.intuit.com/questions/1900583-what-is-the-turbotax-free-file-program

See this TurboTax support FAQ for the difference between the Free File Progam and the Free edition - https://ttlc.intuit.com/questions/2572617-what-s-the-difference-between-free-file-program-and-free-e...

And see this TurboTax support FAQ on how to switch to the TurboTax Free File Program - https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-free-file-program

[Shellbell6001]

This program is a joke! They want me to pay an additional $40 for the state and federal to file, because I am getting $17 back from the feds for contributing to my retirement. So pay $80 to get $17! Makes sense right, I will file my own taxes and I will make sure that everyone I know gets an earful about how stupid Turbo Tax really is.

[mesquitebean]

@ Shellbell6001 

TurboTax has 2 free products.  The regular Free Edition is limited to very simple returns.  It cannot be used if anyone has Schedules 1-3.

The other free product (TurboTax IRS Free File Program) is fully-featured and can prepare all the usual forms and schedules, if you qualify.  For example, it can prepare Schedules 1-3, and Schedule C, D, E, F, etc., and enter K-1. But one has to meet one of the qualifications to use.  See below:

To qualify for free 2019 federal and state tax returns through the IRS Free File Program delivered by TurboTax, you just need to meet one of these requirements:

• Your 2019 household AGI is $36,000 or less;
• You qualify for the Earned Income Tax Credit (EITC); or
• In 2019, you served as active duty military (including Reservists and National Guard) with a maximum AGI of $69,000, and you have a military-issued W-2.

If you qualify for that program and want to use it, see these 2 FAQs:

FAQ:  What is the TurboTax IRS Free File Program?
https://ttlc.intuit.com/community/choosing-a-product/help/what-is-the-turbotax-free-file-program/01/...

and

FAQ:  How do I switch to the TurboTax IRS Free File Program?

https://ttlc.intuit.com/community/downgrading/help/how-do-i-switch-to-turbotax-free-file-program/00/...