Does one need to file a schedule 3 if I had a qualified 401K contribution but don’t qualify for the credit?

[dmertz]

Only if there is some other nonrefundable credit that you are eligible to receive, otherwise Schedule 3 would not be included if you don't qualify for the credit on Form 8880.

[kaloschin]

Since I don’t qualify why is TurboTax insisting that I do and have to pay for the upgrade to use it?

[dmertz]

Apparently TurboTax has either determined from your entries that you *do* qualify for some credit that must be reported on Schedule 3 or you are being required to upgrade for some other reason.