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New Member
posted Jun 7, 2019 4:59:50 PM

Having to upgrade to deluxe because of schedule 3 nonrefundable credits? Not sure what that means. Can someone explain please?

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1 Best answer
Level 15
Jun 7, 2019 4:59:52 PM

For anyone else who finds this thread.   You don’t have to pay all those fees.
Deluxe is 39.99
State is also a separate 39.99
If you select to have the fees deducted from your refund there is an EXTRA 39.99 Refund Processing Service charge (44.99 for California)  which you can avoid by paying with a credit card .

So you could have 2 charges of 39.99 for 79.98
Or you could have 3 charges of 39.99 for 119.97 (124.99 Calif)

How to see your fees
https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online

For help with fees
https://ttlc.intuit.com/questions/1901213-what-can-i-do-to-reduce-my-fees

OR There is also The Turbo Tax Free File program which is free for federal and state.  And has more forms than the Federal Free Edition, like Schedules A, B, C , D, E, F, EIC, H, K-1, SE,  etc.

To qualify for the Tax Freedom website  you just need to meet one of these 3 things
AGI $34,000 or less
Active duty military with AGI of $66,000 or less
OR qualify for EIC (earned income credit.)

In order to use the Free File program, you have to start it at a special website.  Click on the bottom Orange button I Qualify Start Now and set up a NEW account
http://turbotax.intuit.com/taxfreedom/

24 Replies
Level 15
Jun 7, 2019 4:59:52 PM

For anyone else who finds this thread.   You don’t have to pay all those fees.
Deluxe is 39.99
State is also a separate 39.99
If you select to have the fees deducted from your refund there is an EXTRA 39.99 Refund Processing Service charge (44.99 for California)  which you can avoid by paying with a credit card .

So you could have 2 charges of 39.99 for 79.98
Or you could have 3 charges of 39.99 for 119.97 (124.99 Calif)

How to see your fees
https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online

For help with fees
https://ttlc.intuit.com/questions/1901213-what-can-i-do-to-reduce-my-fees

OR There is also The Turbo Tax Free File program which is free for federal and state.  And has more forms than the Federal Free Edition, like Schedules A, B, C , D, E, F, EIC, H, K-1, SE,  etc.

To qualify for the Tax Freedom website  you just need to meet one of these 3 things
AGI $34,000 or less
Active duty military with AGI of $66,000 or less
OR qualify for EIC (earned income credit.)

In order to use the Free File program, you have to start it at a special website.  Click on the bottom Orange button I Qualify Start Now and set up a NEW account
http://turbotax.intuit.com/taxfreedom/

New Member
Jun 7, 2019 4:59:53 PM

I started  the process with the tax freedom and doing it that way, my return would be $160 less.  Why would it be less if all the info is still the same?

Level 15
Jun 7, 2019 4:59:55 PM

@rrussell1213 - Some information must not be the same. The calculations in the Free File Edition (formerly called Tax Freedom Edition) and Free Edition are the same. You must have entered something differently, or answered a question differently. Possibly there was something that would have required an upgrade in Free Edition, so you didn't enter it there, but you did enter it in the Free File Edition.

New Member
Jun 7, 2019 4:59:57 PM

Oh so what used to be free last year now cost me just under $200 because I have two state returns all for 1 federal form? Thanks for telling me after hours of work Turbotax, I'll be filing with someone else

New Member
Jun 7, 2019 4:59:58 PM

I agree wholeheartedly ethomps4nwu. Is Turbo tax now misleading people?!!!!

New Member
Jun 7, 2019 5:00:00 PM

Similar situation here.  Since schedule 5 is not supported by Turbotax, I found out at the last minute that I would be required to upgrade to Deluxe (no opt out) which has recently been upped to $59 (captive audience I suppose) plus additional for state.  I have used Turbotax for about 10 years now.  Mostly at cost due to self employment forms and I was so excited to get to file for free online finally.  Yeah not so much!  Anyway, just finished filing at Credit Karma. Got the same calculations and schedule 5 form included easy-peasy so not sure why the hangup here.  Anyway jumping ship myself!

Level 15
Jun 7, 2019 5:00:02 PM

Schedule 5 and all the schedules are in Turbo Tax.  Just not in the Free Edition.  But they are in the Free File website I posted above.  The Free Edition and Free File website are 2 different things.  

New Member
Jun 7, 2019 5:00:04 PM

There is the free file edition yes, BUT if you don't fall under the requirements, you can't use it. That AGI is pretty low and not everyone is military or qualifies for the EIC.

Because the IRS changed the 1040 form (in an effort to make it more simple, hahaha) there now appears these new schedules. I also ran into a problem with having to file an addl schedule, all just to write in the no healthcare tax penalty. So that my otherwise VERY simple tax returns would have costed me $104 to file on turbotax. Where's the sense in that? I found better service elsewhere.

Not applicable
Jun 7, 2019 5:00:05 PM

This is not right, period. The numbers are off.

Level 15
Jun 7, 2019 5:00:07 PM

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.

Credits reduce your total tax. A nonrefundable credit is a credit that could, if it were large enough, reduce your tax to zero. But your total nonrefundable credits cannot be more than your total tax. They cannot give you a refund that is more than the amount of tax you paid during the year in withholding and estimated tax.

The only nonrefundable credits that can be claimed on Form 1040 without Schedule 3 are the child tax credit and the credit for other dependents.

All the other nonrefundable credits that were on Form 1040 in previous years have been moved to Schedule 3. These include the following. If you claim any of these credits, you have to upgrade.

  • Foreign tax credit
  • Child and dependent care credit
  • The nonrefundable portion of the American Opportunity Credit
  • Lifetime Learning Credit
  • Retirement savings contributions credit ("Saver's Credit")
  • Residential energy credit

New Member
Jun 7, 2019 5:00:08 PM

Turbo Tax charges $39.99 for both State and Federal Tax returns and an additional $39.99 for paying via the refund itself... so that's $120 hit they don't disclose until you've filled out all forms and are ready to send.  

New Member
Jun 7, 2019 5:00:10 PM

Thank you for clarifying this! This was driving me crazy! I wasn't sure why I wasn't able to file for free like all the years prior. Looking for a different service now.

New Member
Jun 7, 2019 5:00:11 PM

 Ended up going with HR Block

New Member
Jun 7, 2019 5:00:13 PM

Thank you!! I ended up going with credit karma tax, same as turbo tax!

New Member
Jun 7, 2019 5:00:15 PM

I may have to think about moving to another provider.  Thank you for the information.

New Member
Jun 7, 2019 5:00:17 PM

wow, thanks. 8 years with turbotax and if this is the case I'm definitely dropping them.

New Member
Jun 7, 2019 5:00:18 PM

money hungry  bastards

New Member
Jun 7, 2019 5:00:19 PM

Moving to HR block. It's still free for the additional forms.

New Member
Jun 7, 2019 5:00:20 PM

wow I've been using turbo tax for about 5 years now, losing another customer cause of this b.s.

Level 15
Jun 7, 2019 5:00:21 PM

If you were filing for free, TurboTax is not losing much here.

New Member
Jun 7, 2019 5:00:21 PM

After using turbotax for 10+ years we have now changed to credit karma. I tried to file our taxes today and got to the end and received a message saying now we have to pay. Um WHY? The message said because we have a schedule 3 nonrefundable credit blah blah blah. Not only did they want us to pay, but they wanted us to pay $39.99 each for federal and state then pay to have those fees taken from our return instead of using a debit/credit card (we don't have either). I'm not losing $120 of our hard earned money to these crooks. So did some research and found credit karma was completely free to file our federal tax return, there is a fee to file state. I'll go to my state website to file for free. We will no longer be using turbotax.

Level 15
Jun 7, 2019 5:00:21 PM

TurboTax is not a charity. It's a commercial company that is in business to make money by selling software and services. They don't make any money by giving away their products, and they are not under any obligation to give it away. Offering a very restricted version of the product for free is a marketing strategy. They do it in the hope that you will buy something. It's like any other business that gives free samples as a way of introducing their product to potential new customers. When a food store gives you a free sample, they don't give you a full portion or a full meal. They give you a taste. If you want more, you have to buy something.

New Member
Jun 7, 2019 5:00:23 PM

There's a huge difference between a "free sample" to try something, then paying to buy the actual item, and TubroTax saying a service is free and then charging you upwards of $120 to file your taxes. They should say right out that there isn't a free option anymore. Tell me that at the beginning, and not after I'm ready to file.  

Further, I don't have any of the things they say requires this additional form, and I have to "upgrade" anyway? LOL no.

New Member
Jun 7, 2019 5:00:24 PM

I switched to credit karma as well. H&R Block does the same thing so don't use them either. They tell you it's free up until you're about to file and then try to slap you with a charge. TurboTax is the worst for sure though as they try to charge you $40 for "Deluxe" whereas H&R Block attempts to hit you up for only $15. Long story short, go with Credit Karma Tax.