Why is turbotax extorting customers that receive a 401k?

[xmasbaby0]

Do you mean you took money OUT of a 401k?  If you did that then you cannot use the Free Edition.

If you merely have a 401k and it is on your W-2 you may still be able to use the Free Edition.

WHY DO I HAVE TO PAY?  I WANT THE FREE EDITION

The information that you can enter in Free Edition is pretty limited now.  Thanks to the new tax laws that began for 2018 returns, there are no more simple Form 1040EZ or 1040A's.  Everything goes on a Form 1040 that has three extra "schedules" with it, and if you need any of those schedules, you are not able to use the Free Edition.  Using the standard deduction instead of itemizing does NOT mean you will not need any of those schedules.

https://www.irs.gov/forms-pubs/about-form-1040 

If you qualify to use it, there is another full-featured free version of the software:

Try Free File: 

You qualify if your income was $36,000 or less, or $69,000 or less if active duty military, or if you qualify for Earned Income Credit

https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program

• https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-free-file-program

If you switch to Free File you must create a new account and new user ID.

[DawnC]

If you have a penalty from an early withdrawal of your 401k, you will need to use TurboTax Deluxe to file that form (5329) as it is not included with the Free Edition of TurboTax.   If you do not have a penalty, you can avoid filing that form and most likely still use the Free Edition.   Here is an article with the possible ways to avoid the penalty - What are the exceptions to the penalty for an early withdrawal from my 401(k)?

If you can't avoid the penalty and do not want to upgrade, you may be able to use the IRS Free File Program delivered by TurboTax.  

Start with the IRS Free File Program delivered by TurboTax this year if you can answer yes to any of these questions:

• Is your adjusted gross income (AGI) $36,000 or less? 
• Were you active duty military in 2019 with an AGI of $69,000 or less? 
• Do you qualify for the Earned Income Tax Credit? 

To get started, use this link - IRS Free File Program delivered by TurboTax