If the income is in box 7 of the 1099-MISC you do need the upgrade. The income has to be reported on Schedule C, which TurboTax Free Edition does not support.
You might be able to use IRS Free File Program delivered by TurboTax instead of Free Edition. The Free File Program does support Schedule C, but it has income restrictions. It's at the following link, and the qualifications are listed there.
IRS Free File Program delivered by TurboTax
