Can I use the free version of TT if I receive a 1099-MISC and it shows that TT filed a form 8995 and a Schedule 1 for me?

[dchbbc]

Through my retirement I get free legal services and they send a 1099-MISC because it is considered income. It's only $25 "income" with no deductions but I end up paying $39 for Turbo Tax. I was told to list it as additional income so TTax files a 8995 for Qualified Business deductions and the schedule 1. It's not a business. Any idea where I am going wrong?

[xmasbaby0]

WHY DO I HAVE TO PAY?  I WANT THE FREE EDITION

The information that you can enter in Free Edition is pretty limited now.  Thanks to the new tax laws that began for 2018 returns, there are no more simple Form 1040EZ or 1040A's.  Everything goes on a Form 1040 that has three extra "schedules" with it, and if you need any of those schedules, you are not able to use the Free Edition.  Using the standard deduction instead of itemizing does NOT mean you will not need any of those schedules.https://ttlc.intuit.com/questions/4511011-what-happened-to-the-1040a-and-1040ez   If you started in the Free Edition and entered any data that required any of those three schedules, you have to upgrade to a paid version and if you are watching the screens carefully you are alerted to the upgrade.

When you chose to “start”  in the Free Edition —

Directly below the words “Free Edition” there is a blue link that says “For simple tax returns only”   If you click that link it brings up this information:

You can file with TurboTax Free Edition if you have a simple tax return.*

*A simple tax return is Form 1040 only.

Situations covered in TurboTax Free Edition include:

• W-2 income
• Limited interest and dividend income reported on a 1099-INT or 1099-DIV
• Claiming the standard deduction
• Earned Income Tax Credit (EIC)
• Child tax credits
• Student Loan Interest deduction

Situations not covered in TurboTax Free Edition include:

• Itemized deductions
• Unemployment income reported on a 1099-G
• Business or 1099-NEC income
• Stock sales
• Rental property income
• Credits, deductions and income reported on schedules 1-3

How does TurboTax make any money?

Customers with more complex tax situations will file with our paid TurboTax products that provide all the additional forms and guidance they need. We also offer additional benefits that go beyond filing your taxes, but they are optional and are not required to file simple taxes for free. We hope that, over time, as our customers with simple returns need more capabilities as their financial situations change (for example owning a home, having a child, managing investments), they have loved our products and services so much that they will choose our paid TurboTax offerings to prepare and file their returns.

Or—-Use this IRS site for other ways to file for free.  There are 8  free software versions available from the IRS Free File site

https://apps.irs.gov/app/freeFile/

If your TurboTax fees are higher than expected, you can reduce them by removing add-ons:

• Remove Premium Services
• Remove MAX Defend & Restore
• Remove a state
• Remove PLUS Help & Support
• Remove Pay With Your Refund

[dchbbc]

OK. Thanks @xmasbaby0 . I figured I couldn't use the Free version. But what about that 1099-MISC I'm trying to file? I'm entering it as additional income and Turbo is considering it a job and filing the extra forms when all it is is $25 for getting free legal services through my pension for being retired. I fill in the form saying it is for free legal services but it asks me about losses and employees and stuff. Where should I be claiming that form at? Every year I do it the same and the government has accepted it but I know it's not right.

[DianeW777]

This income is not business income, rather miscellaneous as indicated by your Form 1099-MISC. It's not because of a service you performed.

• Use the Search box (upper right) then type 1099misc > click Jump to....

It's important for you to select 'None of these apply" and then you should also select the following:

'No' on the screen 'Did the '____' involve work that's like your main job?'

'No' on the screen 'Did the '____'  involve an intent to earn money?'

This will report the income without any business activity and it will show up on Form 1040, Line 8 (From Schedule 1, Line 8z).

You can use the Preveiw My 1040 to see the income on the appropriate lines of your return.

1. With the Tax Tools menu open, you can then:
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.