Why do i have to upgrade to deluxe for a $38 tax credit for retirements savings, i would rather not take the $38 credit and save the money?

Unfortunately, the software doesn't allow that credit unless you upgrade.

To get rid of it....so you can stay in the "Free" version, go thru Retirement Savings Credit interview again, and indicate you were a student during 2020...that will get rid of it.

IF you later have some other tax situation, that ends up requiring you to upgrade anyhow, you can go thru that part of the interview and say No to the student question to get it back.

The Saver's Credit is a 'non-refundable' credit. That means this credit can reduce the tax you owe to zero, but it can't provide you with a tax refund. 

To remove the credit :

• Login to your account.
• Select Federal from the left menu.
• Go to Deductions and Credits 
• Scroll down to Retirement savings contribution credit in the Retirement and Investments section
• Continue to the screen Retirement savings contribution credit and answer Yes to the question "Were you a full time student during any five month in 2020?"

You won't qualify for the credit if you check that you were a full time student.