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New Member
posted Jun 5, 2019 11:42:53 PM

Can I use TurboTax Free Edition with unemployment income? I could in 2017, but not in 2018. Is this change correct? If so, why?

I was able to file for free last year with both a W-2 and a 1099-G. This year I'm being told that I need Deluxe to have a 1099-G filed correctly, is this true? And if so, why would you make unemployment, something that implies a struggling income, be something that triggers paying $40 for an otherwise free service.

I really like TurboTax, but currently, my taxes are pretty simple and I'm not in a spot to drop $40 when I don't have to.

Thanks, please let me know if I can still use Free Edition with unemployment income.

5 12 15278
1 Best answer
Level 15
Jun 5, 2019 11:42:54 PM

You cannot use TurboTax Free Edition if you received unemployment benefits. Because the IRS has made major changes to Form 1040 for 2018, TurboTax has had to change what tax situations are included in Free Edition. Some of the things that used to be included are no longer included.

The IRS has simplified Form 1040 by moving many of the entries that used to be on Form 1040 to a set of six separate schedules. There are no short forms 1040A or 1040EZ for 2018. All 2018 tax returns will be filed on Form 1040. TurboTax Free Edition for 2018 will only prepare simple tax returns that can be completed with Form 1040 itself. Anything that requires one of the six new schedules requires an upgrade. Unemployment income has been moved to Schedule 1. Therefore it is not included in Free Edition.

You might be able to use the TurboTax Free File Program instead of Free Edition. See the FAQ at the link below for information about TurboTax Free File Program, including the requirements to be able to use it. It's not available yet for 2018, but it will be available later in January.

https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program


12 Replies
Level 15
Jun 5, 2019 11:42:54 PM

You cannot use TurboTax Free Edition if you received unemployment benefits. Because the IRS has made major changes to Form 1040 for 2018, TurboTax has had to change what tax situations are included in Free Edition. Some of the things that used to be included are no longer included.

The IRS has simplified Form 1040 by moving many of the entries that used to be on Form 1040 to a set of six separate schedules. There are no short forms 1040A or 1040EZ for 2018. All 2018 tax returns will be filed on Form 1040. TurboTax Free Edition for 2018 will only prepare simple tax returns that can be completed with Form 1040 itself. Anything that requires one of the six new schedules requires an upgrade. Unemployment income has been moved to Schedule 1. Therefore it is not included in Free Edition.

You might be able to use the TurboTax Free File Program instead of Free Edition. See the FAQ at the link below for information about TurboTax Free File Program, including the requirements to be able to use it. It's not available yet for 2018, but it will be available later in January.

https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program


New Member
Jun 5, 2019 11:42:57 PM

screw you poor people

New Member
Jun 5, 2019 11:42:59 PM

Way to HIDE the TurboTax Free File which is the same damn thing as the Free Edition.. So yes if you Your

2018 Adjusted Gross Income (AGI) is $34,000 or less

You qualify for the Earned Income Tax Credit (EITC)

In 2018, you served as active duty military (including Reservists and National Guard) with a maximum AGI of $66,000, and you have a military-issued W-2

You can still file for free without needing to upgrade to deluxe. BUT if you just go to your account and try to start filing it will never tell you that Free File is available and will try to upsell you to deluxe.. You have to click on the <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/taxfreedom/">https://turbotax.intuit.com/taxfreedom/</a> link to GET to the Free File system. It will not automatically get you there from your account page.

New Member
Jun 5, 2019 11:43:00 PM

thanks for that link. I was in total disbelief when they tried to charge me 39.99 for Federal and 39.99 for State filing when I tried to enter my unemployment compensation. Can't believe that they would do that to unemployed people who
 just struggled through the holiday season!!!

New Member
Jun 5, 2019 11:43:01 PM

Good job trying to rip people of TT

New Member
Jun 5, 2019 11:43:03 PM

You can use H&R Block for free with unemployment income, that's what I had to do.

New Member
Jun 5, 2019 11:43:04 PM

Right? Shame on you TurboTax. $40 is a lot to the struggling unemployed.

New Member
Jun 5, 2019 11:43:05 PM

I found that the taxfreedom option has a limitation based on Adjusted Gross Income. I had W-2 income from a decent job and although I earned a decent salary, I ended up losing that job, and had to rely on unemployment and still am unemployed. This up-charge is unfair and I won't pay it because there is another free option on the "block" that offers free filing too and they don't charge extra for having unemployment income

New Member
Jun 5, 2019 11:43:07 PM

turbo tax wanted 59.99 deluxe upgrade... AND 39.99 for the state! I am paying for the tax on unemployment anyways! such rip-offs!  I ended up doing the handwritten paper version....

New Member
Oct 15, 2022 11:46:52 AM

This is the grossest thing a corporation can do. YOU [removed]. Customer of 8 years = GONE.

 

**bleep** YOU.

 

Signed,

 

A poor.

Level 15
Oct 15, 2022 12:01:33 PM

@kellebell730   Try one of the IRS Free File programs

Free File: Do your Federal Taxes for Free | Internal Revenue Service

 

Or you can get the blank forms and fill them out by hand.

2021 1040

https://www.irs.gov/pub/irs-pdf/f1040.pdf

 

Instructions

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

 

Current year EIC and Tax Tables  https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

Level 1
Feb 2, 2025 3:49:24 PM

I'm giving it a week to see if the backlash makes them act right, and if not then TT lost a customer of 6 years. So are my mom and daughter and 2 brothers. And most of them used to pay for the deluxe version. They are appalled on behalf of people like me who are low income and already struggling and have had to be on unemployment for some portion of this year.

TT is going to be losing so much business for being slimebags needlessly. My brother said he'd rather pay a competitor 200 dollars than pay them the 100 he planned on paying for whatever version just out of spite because of the deception and greed aimed at the group of people already struggling the most in life. So gross.  And if they don't unhide access to free file in the next week I'll either do it myself or go through H&R block. I'm so sick of these greedy corporations and insurance companies who have literally nothing without us taking advantage of the least among us in the midst of a Recession that is teetering at the bring of an outright Depression. It's disgusting.  TurboTax should be ashamed. 🖕