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If you were charged $89 for your TurboTax it is likely because your tax situation required more than the basic forms (for example, itemizing investments), you may have been upgraded to Deluxe or higher. The TurboTax Free Edition is for customers who are filing simple Form 1040 returns only (no schedules except for Earned Income Credit, Child Tax Credit and Student Loan Interest. Roughly 3.7% of taxpayers qualify
You can review your fees using the instructions below to find out why you're being charged. You can follow the instructions in this article to remove any unwanted Fees Why am I being charged for TurboTax Free Edition?
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A couple reasons could be saying you need to upgrade……
You might be seeing this because of form 8959, that goes to Schedule 2. The amount of Medicare taxes withheld in W2 box 6 is not exactly 1.45% of the Medicare wages in box 5, due to rounding. I read a post that said to try leaving the cents off of the Medicare tax on your W2 box 6. Box 6 has to be exactly 1.45% of box 5 or less.
If it is saying you need Schedule 3 and can't use the Free Edition it might be giving you the Retirement Savings Credit. You can say you are a student to decline the credit. You must answer Yes when asked in the Retirement Savings Contributions Credit section if your were a full-time student. The answer to this same question asked in the personal-information section is not the answer that is used.
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