Will the free version account work for teachers deductions?

Forum|Forum|7 years ago
June 3, 2019
6 replies
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TurboTax Free Edition Online

Best answer by Howard1948

https://ttlc.intuit.com/questions/4531975-why-must-i-upgrade-to-deluxe-to-take-the-student-interest-...

The answer that another SuperUser gave to the above question regarding student loan interest may also apply to you if you are asking about the $250 educator's deduction. You don't want to upgrade to Deluxe if the cost of that upgrade exceeds the actual income tax reduction you get for taking the deduction. For example, if you are in the 12% tax bracket, a $250 deduction is worth only $30 in tax reduction. If the cost of the upgrade exceeds $30, you would actually LOSE money by taking the deduction. However, if you use the alternative free program referred to in the above link, you could still take the deduction and come out ahead.

Also be careful if you are filing in IL and the Federal educator's deduction is also a tax credit in IL and you don't want to lose that credit by inadvertently forgetting about it when preparing the IL return. I don't know if there are any other states that may have the same situation.

DoninGA

Level 15

No. You will need to upgrade to the Deluxe edition.

G

g_williams2007

Level 2

just seems that you are requiring more money to file taxes this year. After using this service for 8 years, I am disappointed.

I

iamateacherinamerica

Level 2

This is just more highway robbery for teachers. I spent $2,641.36 out of pocket on my classroom teaching in Title 1 schools with next to no funding, no PTA, and laughable teacher refunds... only to get a whopping $250 in returns from the Federal government.
And where do I spend $114 dollars of that inadequate return? To complete and file my taxes through TurboTax!! I will definitely NOT be using TurboTax next year. I will personally spread the word as though there was fire beneath my fanny and assure you there will be a legion of teachers who join in solidarity discontinuing to use & be bamboozled by TurboTax.

K

katherine-tombs

Level 2

This is awful!! I'm so upset I have to upgrade to Deluxe to get this deduction.

DoninGA

Level 15

Use the Free File Program edition instead - <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-freedom-edition">https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-freedom-edition</a>

H

Howard1948Answer

Level 7

https://ttlc.intuit.com/questions/4531975-why-must-i-upgrade-to-deluxe-to-take-the-student-interest-...

The answer that another SuperUser gave to the above question regarding student loan interest may also apply to you if you are asking about the $250 educator's deduction. You don't want to upgrade to Deluxe if the cost of that upgrade exceeds the actual income tax reduction you get for taking the deduction. For example, if you are in the 12% tax bracket, a $250 deduction is worth only $30 in tax reduction. If the cost of the upgrade exceeds $30, you would actually LOSE money by taking the deduction. However, if you use the alternative free program referred to in the above link, you could still take the deduction and come out ahead.

Also be careful if you are filing in IL and the Federal educator's deduction is also a tax credit in IL and you don't want to lose that credit by inadvertently forgetting about it when preparing the IL return. I don't know if there are any other states that may have the same situation.