Do you mean that you choose " this does not apply to you" when it asks you about a 1099-R? If you do not have a 1099-R, you might be okay with the free edition. However, if you have a 1099-R with an early distribution, you need an upgraded version.
If you have not reached age 59 1/2 and you took an early distribution from a qualified retirement plan, like a 401k or IRA, you are entitled to a penalty that you must pay an additional 10% early withdrawal tax, unless an exception applies. In the TurboTax program, once you enter your personal and Form 1099-R information, the program will generate a Form 5329 Additional Taxes on Qualified Plans and walk you through the steps to check if an exception applies to you. If you qualify for an exception, you would not need to pay the penalty. In order to complete this process, you need the TurboTax Deluxe version.
I understand you might not feel the need for the upgrade, however, we want to make sure our process is in compliance with IRS regulations and ensure you the right amount of tax dues or refunds you are entitled to.
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