It's forcing me to upgrade from free to deluxe. reason is Schedule 1, Additional Income and Adjustments to Income. what do i need to do to make it free?

elderbarneyjoshu · ‎June 1, 2019

mesquitebean · ‎June 1, 2019

EDITED: 3/18/2021 10:54 PM Pacific

This old answer was timely for 2018 returns, but now for 2020 returns it contains some outdated information that no longer applies for 2020 products. For instance, if one qualifies to use the TurboTax IRS Free File Program, it is now possible to switch to it from within the same account without starting over. I've placed a line through some of the old information below. And I've provided a new answer for a current user following this one.

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Are you reporting any student loan interest or receiving any credits? Those are some common things that would require someone who normally uses Free Edition to have to use Deluxe, since they require a new Schedule. But I'll tell you about a second free product below. So read the whole answer first.

Because of new changes in the tax laws for 2018, there may be some filers who can no longer use regular Free Edition this year.   But there a second free product that you might be able to use, if necessary. I'll provide more info about it below.

The regular Free Edition is more limited this year due to tax law changes.    If you need any of the new Schedules 1-6, for instance, then you can't use Free Edition.

Here are some common things that cannot be handled by the regular Free Edition:

     Itemized deductions
     Business or 1099-MISC income
     Sales of stocks/mutual funds/bonds
     Rental property income
     Foreign Earned Income
     HSA
     Credits, deductions and income reported on the new schedules 1–6, such as the Student Loan Interest Deduction

TurboTax has another free product called the TurboTax Free File Program. It is free for both Federal and State--IF you meet just one of the qualifications.   It can handle all the usual forms without the limitations of regular Free Edition.

See this FAQ to see if you meet one of the qualifications:
https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program

The TurboTax Free File Program is located at the link below. ~~It requires a new User ID from what you are currently using for Free Edition~~ since it is a different website, and the IRS requires it to be disconnected from the TurboTax commercial products.
https://turbotax.intuit.com/taxfreedom/

If you decide to switch, here's how. ~~Note you will need a new User ID, different than Online TurboTax.~~
https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-free-file-program

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EDITED: 3/18/2021 10:54 PM Pacific

This old answer was timely for 2018 returns, but now for 2020 returns it contains some outdated information that no longer applies for 2020 products. If one qualifies to use the TurboTax IRS Free File Program, it is now possible to switch to it from within the same account without starting over. I've placed a line through some of the old information above. I've also provided a new answer with current information for a user below.

donovanvelez1985 · ‎March 18, 2021

This is false advertising. It says free state and free federal GUARANTEED. Now I have to upgrade and pay my state? It's charging me 110.

mesquitebean · ‎March 18, 2021

@ donovanvelez1985 wrote:
This is false advertising. It says free state and free federal GUARANTEED. Now I have to upgrade and pay my state? It's charging me 110.

By "guaranteed", I don't know what page you are looking at, so I can't comment on what you were seeing. The Free Edition has certain conditions that have to be met. The product selection page says the regular Free Edition is for "simple returns only", and if one clicks those words there, it provides a popup of what is and isn't included in Free Edition. I don't know what your situation is, so I don't know if you were required to upgrade or not, but I'll discuss some possibilities below.

NOTE: This is an old thread from 2 years ago about 2018 returns, so the original answer above has some outdated info in it, since some things have changed since then. For instance, starting last year, a user no longer has to use a different account to switch to IRS Free File Program (if one qualifies.) And it doesn't require one to start over. I'll put a note in the old answer above about that change.

So I'll give you a new answer below with current information. Perhaps you can use the other free product (TurboTax IRS Free File Program) if you meet one of the qualifications. It is fully-featured with no upgrades. If you don't meet a qualification to use the second free product, there are other free file options accessed through the IRS website.

TurboTax has 2 free products, but if you are being charged $110, then you must have been upgraded to Online Deluxe Edition, which is a paid version--currently $60 for Federal and $50 for state (if applicable), and if you choose to pay the fees out of your Federal refund, there is an additional $40 service fee ($45 for California filers.) I'll tell you about both free products below.

The regular Free Edition is for very simple returns and not everyone can use it. Certain forms are not available in Free Edition and require an upgrade to a higher edition, such as any one of Schedules 1-3, itemized deductions, education credits, student loan interest, retirement savers credit, Child and Dependent Care credit, income from business/rentals/royalties, capital gains/losses, have a K-1 to report, and more.

FAQ: Why do I have to upgrade from Free Edition?
https://ttlc.intuit.com/community/upgrading/help/why-do-i-have-to-upgrade-from-free-edition/00/26379

Do you know what is it in your return that triggered an upgrade to Deluxe?

We can tell you how to look at the Form 1040, and any Schedules 1-3. If you need any of those schedules, you can't use regular Free Edition. If you ended up in Deluxe Edition by mistake and are sure you don't need it, you can downgrade to Free Edition as long as you haven't paid/registered, but if there is any item that requires Deluxe it would cause an upgrade again.

The other free product (TurboTax IRS Free File Program) is fully-featured and can prepare all the usual forms and schedules. It is even more powerful than Deluxe, if you qualify. For example, in addition to Schedules 1-3 it can prepare Schedule C, D, E, F, etc., and enter K-1. But one has to meet one of the qualifications to use. See below:

To qualify for free 2020 federal and state tax returns through the IRS Free File Program delivered by TurboTax, you just need to meet one of these requirements:

Your 2020 AGI is $39,000 or less (if filing jointly MFJ, this figure is for the AGI of both spouses combined.) ; or
You qualify for the Earned Income Tax Credit (EITC); or
In 2020, you served as active duty military (including Reservists and National Guard) with a maximum AGI of $72,000, and you have a military-issued W-2.

If you meet one of those qualifications and want to use it, it is at this special website

https://freefile.intuit.com/

but see the following 2 FAQs first, including how to switch within the same account without starting over:

FAQ: What is the TurboTax IRS Free File Program?
https://ttlc.intuit.com/community/choosing-a-product/help/what-is-the-turbotax-free-file-program/01/...

and

FAQ: How do I switch to the TurboTax IRS Free File Program?

https://ttlc.intuit.com/community/downgrading/help/how-do-i-switch-to-turbotax-free-file-program/00/...

There are also other free file options that may have different requirements at the IRS website:
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

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It's forcing me to upgrade from free to deluxe. reason is Schedule 1, Additional Income and Adjustments to Income. what do i need to do to make it free?