How is "limited" defined for 1099-INT when filing a simple return for free? (i.e. dollar amount)

[Scott_WI]

Since I exceeded the limit, I got pushed from Free file to Deluxe. I couldn't find the "limit" anywhere on the website prior to starting my return. Why not publicize the exact amount as part of the restrictions for the Free file instead of using the term "limited"? I would also like to know who sets the limit, intuit turbotax or the IRS?

[DaraLO]

Once your tax situation requires any attached schedules, you will be prompted to upgrade.

If you qualify, TurboTax Free File is another free option that we offer.

If you have any additional questions, please speak with our phone support team for assistance:  What is the TurboTax phone number?

[Scott_WI]

The answer by the "Expert" did not answer my questions at all. Being evasive is a red flag and should serve as a warning to anyone considering using intuit turbo tax. Please do better and answer the questions that were asked.

[JamesG1 · Accepted solution]

This promotional material can be found at this website under For simple tax returns only.

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

*A simple tax return is Form 1040 only OR Form 1040 + Unemployment Income. 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
• Unemployment income reported on a 1099-G

My understanding is that this statement means income reported on a 1099-INT or 1099-DIV.  Reporting interest or dividends which are not being reported on these forms would require a version upgrade.

Also IRS 1040 Schedule B is not reported on the Basic version.  Scroll down the left side of the screen and look for Schedule B.

The Internal Revenue Service requires a Form 1040 Schedule B form in a number of situations, but for the average taxpayer, the two most common reasons are earning more than $1,500 of interest or dividend income (from savings accounts or stocks, for example) and to exclude the interest you earn on certain U.S. savings bonds from your tax return.

[Scott_WI]

Thank you JamesG1, now I understand why I got "bumped" out of the Free Edition for having more than $1500 on my 1099-INT. If I had known that upfront, I wouldn't have even bothered trying to do it for free, I would have just started with Deluxe. Now if the verbiage could get changed from "limited...." to "less than $1500..." that would be awesome, but I understand that was probably a marketing decision to lure people it, then get 'em with the bait 'n switch.

[Limited interest and dividend in]

Scott_WI, you're right. It is "the bait 'n switch" scam. After TurboTax switches you to their $60 version, later, you'll find out that there is an ADDITIONAL $40 charge (so it is really $100):
"Don't worry about pulling out your wallet. We'll simply deduct your TurboTax fees, plus an additional $40 processing fee, from your federal refund and send the balance to your bank account."

Last year, they had it as a $40 version & a $60 additional fee. This is why I used a different Tax Software this year (for 2020 return).

You can check for other FREE Tax Software at https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free for people who earn $72,000 or less. Direct link: https://apps.irs.gov/app/freeFile/browse-all-offers.