Because the IRS has made major changes to Form 1040 for 2018, TurboTax has had to change what tax situations are included in Free Edition. Some of the things that used to be included are no longer included, and some things that used to not be included are now included.
The IRS has simplified Form 1040 by moving many of the entries that used to be on Form 1040 to a set of six separate schedules. There are no short forms 1040A or 1040EZ for 2018. All 2018 tax returns will be filed on Form 1040. TurboTax Free Edition for 2018 will only prepare simple tax returns that can be completed with Form 1040 itself. Anything that requires one of the six new schedules requires an upgrade.
You didn't say what credit you claimed. The only credits that can be claimed on Form 1040 without Schedule 3 or Schedule 5 are the following.
- Child tax credit and additional child tax credit
- Credit for other dependents
- Earned Income Credit (EIC)
- The refundable portion of the American Opportunity Credit
Many of the credits that were on Form 1040 in previous years have been moved to Schedule 3 or Schedule 5. These include the following. If you claim any of these credits, you have to upgrade.
- Foreign tax credit
- Child and dependent care credit
- The nonrefundable portion of the American Opportunity Credit
- Lifetime Learning Credit
- Retirement savings contributions credit ("Saver's Credit")
- Residential energy credit
- Net Premium Tax Credit (for Marketplace insurance)
