That is a IRS requirement. The free edition only supports simple 1040EZ/A forms. If you have a early distribution penalty then the IRS requires that it be entered on the full 1040 form line 59 that requires Deluxe of higher - unless you qualify for the "Freedom Project" edition.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
