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New Member
posted Jun 7, 2019 4:30:28 PM

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

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23 Replies
Level 1
Jun 7, 2019 4:30:29 PM

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

New Member
Jun 7, 2019 4:30:31 PM
New Member
Jan 6, 2020 3:33:12 PM

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

Level 15
Jan 6, 2020 3:43:34 PM


@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


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/

 

New Member
Feb 11, 2020 6:06:59 AM

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

Level 15
Feb 11, 2020 6:12:24 AM


@Kitty_4877 wrote:

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


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

New Member
Feb 11, 2020 9:04:38 AM

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?

Level 15
Feb 11, 2020 9:07:10 AM


@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?


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

New Member
Feb 13, 2020 3:22:53 PM

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. 

Expert Alumni
Feb 13, 2020 3:34:31 PM

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.

New Member
Feb 13, 2020 3:36:51 PM

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? 

Level 15
Feb 13, 2020 3:37:53 PM


@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? 


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

New Member
Feb 17, 2020 8:28:44 PM

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.

Level 15
Feb 17, 2020 8:32:10 PM

@ 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/...

Level 15
Feb 17, 2020 9:00:58 PM


@ Shellbell6001

 wrote:

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.


Or is it this?   Is it Form 8880 for the  Retirement Savings  Contribution Credit?

 

Have you already done the upgrade to Deluxe?    I'm not a tax expert, but I have seen in the forum that users have tried to remove the Form 8880 to avoid having to pay for an upgrade.  There might be a way to remove that Savers Credit  (Form 8880) by downgrading to Free Edition (using "Clear and Start Over.")   And then once you are back in Free Edition again, it will likely put the Form 8880, but you may be able to remove it  before accepting any upgrade by this method:

https://ttlc.intuit.com/community/accessing/help/how-do-i-view-and-delete-forms-in-turbotax-online/00/25593

But it might still put it back after that, too.

 

I think

@ SteamTrain

may be familiar with removing that credit, and there may be a way to remove it in the interview, too.   I'll see if he can add to this thread when he's next in the forum. 

 

In the meantime, I also gave you some info above on the other free product TurboTax IRS Free File Program, if you qualify, which would be an alternative free product that can handle all forms, including the Savers Credit.

Level 15
Feb 18, 2020 4:35:16 AM

@Shellbell6001   @mesquitebean 

 

If it is the Retirement Savings Contribution Credit (RSCC), and IF...if you haven't already upgraded to deluxe...

 

Then, go thru the RSCC again and in one of the questions, you indicate that you were a student during 2019,  That supposedly eliminates the RSCC and the forced upgrade.

New Member
Feb 18, 2020 12:46:46 PM

I've always had simple taxes but this year it is asking me to use the deluxe version because of retirement savings contributions. Does that mean I will be getting back the dollar amount shown (for my contributions) in my actual refund? In other words, if i pay the $80 to file with the Deluxe Edition, I will be getting a higher refund?

Employee Tax Expert
Feb 18, 2020 12:54:07 PM

Your refund will include the retirement savings credit, but it is only a percentage of what you paid in to your retirement fund.

Level 1
Mar 2, 2020 1:29:34 PM

You stated that there is a Free Form that includes the Schedules and other forms if you fall under ONE of the noted conditions.   However, that is just not true.

 

I tried to do that because income is well under the $36k and when I got to the end, it shot me back the whole "pay $80 because you have Schedule 3, non-refundable credits".  

 

And, I'm a less than part-time college student for heaven's sake!   I don't make half that amount in a year.  And, I cannot be listed as a Dependent on my parent's tax returns.

 

Something isn't right.

Level 15
Mar 2, 2020 1:33:50 PM


@ kkonz 

wrote:

You stated that there is a Free Form that includes the Schedules and other forms if you fall under ONE of the noted conditions.   However, that is just not true.

I tried to do that because income is well under the $36k and when I got to the end, it shot me back the whole "pay $80 because you have Schedule 3, non-refundable credits".  

And, I'm a less than part-time college student for heaven's sake!   I don't make half that amount in a year.  And, I cannot be listed as a Dependent on my parent's tax returns.

 


 TurboTax has 2 free products.  If you were asked to pay anything, it sounds like you are in the wrong free product, and I'll explain both products and how to switch.   You probably were using regular Free Edition.  The other free product (TurboTax IRS Free File Program) that I describe below can handle all the usual forms and schedules and has no fees for Federal and state returns.   It is the TurboTax IRS Free File Program that allows one free preparation and filing if they meet 1 of the qualifications, such as AGI less than $36,000 etc.   See more about it below.

 

The regular Free Edition is for very simple returns and not everyone can use it.  Certain forms are not available in Free Edition and require an upgrade to Deluxe, such as one of Schedules 1-3, itemized deductions, education credits, student loan, interest, etc.  

FAQ:  Why do I have to upgrade from Free Edition?
https://ttlc.intuit.com/community/upgrading/help/why-do-i-have-to-upgrade-from-free-edition/00/26379

 

 

The other free product (TurboTax IRS Free File Program) is fully-featured and can prepare all the usual forms and schedules.   For example, it can prepare Schedules 1-3, as well as  Schedule C, D, E, F, etc., and enter K-1.  It is even more powerful than Deluxe, if you qualify.  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; or
      • 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, including how to switch:

 

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/...

Level 15
Mar 2, 2020 1:44:20 PM

@kkonz 

Or did you already pay for Deluxe?  It's not clear from  your posting.  You said it charged you $80, but you didn't say if you paid it or not.   If you already paid, report back, and I'll have some additional suggestions.

 

 

 

 

Level 1
Mar 3, 2020 12:29:15 PM

No, I did not finalize and pay it yet.

 

I tried yesterday to go to the "free" site that was mentioned in a previous posting and it didn't work because it just pushed me back into saying I had to pay for Deluxe.

 

I'll read your comments and the links provided and give it one more try.   Thx.

Level 1
Mar 3, 2020 12:49:37 PM

Wow, that finally worked.  (Although the directions given to switch changed and had to muddle around a bit to get it to switch).

 

Either way, thank you!