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jalbfmet59
New Member

Can anyone explain why I now am told I need $120 deluxe package because of a 1099R

 
3 Replies
mesquitebean
Level 15

Can anyone explain why I now am told I need $120 deluxe package because of a 1099R

Free Edition or Live Basic that you appear to be using (which is Free Edition plus Live TurboTax help from a CPA/EA and a review of your return) can handle a 1099-R for some situations but not all.

 

Did you have an early distribution from a qualified retirement plan?  If so Deluxe or higher is required for that to complete the necessary Form 5329.  Regular Deluxe is $60 for Federal and $50 for state.   Live Deluxe is $120 for Federal and $55 for state.  

 

See this answer from TurboTax @LinaJ2020  in a similar thread:

https://ttlc.intuit.com/community/retirement/discussion/turbotax-is-trying-to-make-me-upgrade-to-the...

 

Is that your situation?   If so, regular Deluxe is the minimum paid product that can handle that situation in Online TurboTax.  Whether you would pay $60 or $120 for the Fed return depends on whether you want the Live feature, which can be removed.   We can tell you how to remove TurboTax Live.

 

Be aware there is a free product that can handle it if you meet one of the qualifications.

 

The TurboTax IRS Free File Program (not the same as regular Free Edition) is fully-featured and can prepare all the usual forms and schedules.  It is even more powerful than Deluxe, if you qualify.  For example, in addition to Schedules 1-3 it can prepare Schedule C, D, E, F, etc., and enter K-1. But one has to meet one of the qualifications to use.  See below:

 

To qualify for free 2019 federal and state tax returns through the IRS Free File Program delivered by TurboTax, you just need to meet one of these requirements:

      • Your 2019 AGI is $36,000 or less (for Married Filing Jointly returns, combined AGI of both spouses cannot be over that limit),  or
      • You qualify for the Earned Income Tax Credit (EITC); or
      • In 2019, you served as active duty military (including Reservists and National Guard) with a maximum AGI of $69,000, and you have a military-issued W-2.

 

If you qualify for that program and want to use it, see these 2 FAQs:

 

FAQ:  What is the TurboTax IRS Free File Program?
https://ttlc.intuit.com/community/choosing-a-product/help/what-is-the-turbotax-free-file-program/01/...

and

FAQ:  How do I switch to the TurboTax IRS Free File Program?

https://ttlc.intuit.com/community/downgrading/help/how-do-i-switch-to-turbotax-free-file-program/00/...

Kat
Level 15
Level 15

Can anyone explain why I now am told I need $120 deluxe package because of a 1099R

Adding to @mesquitebean 's answer:  If you haven't used the "Live" function (speaking or messaging with a tax expert), you should still be able to remove that paid feature.  See the TurboTax FAQ I'm linking below.

 

How do I remove TurboTax Live? 

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
fanfare
Level 15

Can anyone explain why I now am told I need $120 deluxe package because of a 1099R

visit www.irs.gov to find truly free federal filing, even with a 1099-R tax document.

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