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Yes, you may get the message to upgrade if you have foreign tax paid on Form 1099-DIV in box 7 as well as answering yes to the questions about foreign assets.
Any amount in box 7 of Form 1099-DIV will qualify you for the foreign tax credit, which isn't included in the Free Edition. If you have an entry there, you can remove it because it's not income, it's a credit.
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