Sold a home last year it says I do not need to pay taxes, I hit continue and get to another screen that says because you owe taxes you need to upgrade?

[lilmerv-jm]

My gains are $56k, we'll under the $250k needed to pay taxes.

[Bsch4477]

The only reason you would have to report the sale is if you received form 1099-S. 

[lilmerv-jm]

Yes, I received a 1099-S, entered it in, answered all the question and it was said "You do not have to pay taxes on the sale of your home" and then I hit continue then it said "Because you owe taxes on your home sale you need to upgrade"

[AmeliesUncle]

Because you received the 1099-S, it needs to be reported on your tax return (although it is rather odd why you did receive a 1099-S, unless you filled out the closing paperwork incorrectly).

Because it needs to be reported on the tax return, it requires additional forms that the lower cost versions may not have.  So that is why it it saying you need to upgrade.

[Opus 17]

@lilmerv-jm 

The screen is wrong (because it's a picture, not dynamic text) but the result is correct.

It should say, "Because you must report your sale on schedule D, you need to upgrade."  Because that form is not included in the free or Deluxe version. 

You must report the sale because you got a 1099-S, even if you owe no tax.  If you don't report the sale, the IRS will send you a letter assessing tax and penalties and you will have more than $69 worth of trouble to straighten it out.  

[lilmerv-jm]

TY, that's what I wanted to confirm that the text was wrong, yes I will upgrade to get the schedule D, just wanted to make sure that's where it is reported EVEN IF I do not have gains and need to pay taxes

Is there anyway to report this error to turbotax?

[Opus 17]

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@lilmerv-jm wrote:

TY, that's what I wanted to confirm that the text was wrong, yes I will upgrade to get the schedule D, just wanted to make sure that's where it is reported EVEN IF I do not have gains and need to pay taxes

Is there anyway to report this error to turbotax?

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I could forward a message, but based on past experience, I don't think it will result in any change.  It's probably been this way for years.

[Narodenj]

Nonetheless, sang it has been this way for years and would probably not make a difference is not a reason to not correct the error. I hope TurboTax Intuit does not work this way as a general rule!

[DoninGA · Accepted solution]

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@Narodenj wrote:

Nonetheless, sang it has been this way for years and would probably not make a difference is not a reason to not correct the error. I hope TurboTax Intuit does not work this way as a general rule!

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The wording has been changed for upgrading and the user indicated they received a Form 1099-S for the home sale -