Question about Fees/Products

[graff]

I was doing the "Free" version like I did last year, but I want to claim the American Opportunity Credit this year -- TT is saying that I need to upgrade to the Deluxe edition for $40.. do I actually have to if I'm just doing that one education credit? Also, why is charging $40 to file state...? I thought I read somewhere that the fee to e-file state (in my case, California) is only 19.99? I know I can delete the state and do it later but it says I have to wait for the IRS to accept Federal.. if I do so, will the CA state fee still be $40 or $19.99? If so, can I file my state elsewhere? I'm thinking of switching to credit karma which I read is actually free...

[mesquitebean]

The 19.99 state efile fee is ONLY for desktop product (CD/download).  It does not apply to Online TurboTax.  The preparation fees for Online Deluxe are $40 for Federal and $40 for state, but you may still have a free option.  I'll explain below.

There is a different free product you may be able to use, if you qualify, called the TurboTax IRS Free File Program.   If you qualify, it is fully-featured and can prepare all the usual forms.   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 Deluxe or higher, such as one of Schedules 1-3, itemized deductions, education credits, student loan interest, etc.     See this FAQ on some situations where one cannot use Free Edition:

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

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, 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 2019 federal and state tax returns through the IRS Free File Program delivered by TurboTax, you just need to meet one of these requirements:

• Your 2019 household AGI is $36,000 or less; or
• You qualify for the Earned Income Tax Credit (EITC); or
• In 2019, you served as active duty military (including Reservists and National Guard) with a maximum AGI of $69,000, and you have a military-issued W-2.

If you qualify for that program and want to use it, see these 2 FAQs:

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/...

[graff]

Thanks so much! I didn't know about the IRS Free File Program -- this is what I needed.. thanks!

[mesquitebean]

You're welcome.  Good luck!