Is it necessary to upgrade to TurboTax Deluxe ($40 fed $40 state) to report $16 of jury duty income? Can I just ignore and file free??

[mesquitebean]

@ benzee01 

Jury Duty pay is indeed taxable income and is required to be reported.  Most commonly it is reported as "Other Income" on Schedule 1, which is not present in regular Free Edition.  It would require either an upgrade to Deluxe OR a switch to the other free product--the TurboTax IRS Free File Program  (not the same as regular Free Edition.)   A switch does not require starting over, but you have to meet ONE of the qualifications.

Did you get a 1099-MISC or 1099-G from the Court?  Often the Court doesn't send any form at all.
FAQ: Where do I enter jury duty pay?

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-jury-duty-pay/01/26290

The 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 household AGI is $39,000 or less;
• 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 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/...

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

[benzee01 · Accepted solution]

Damned if you do, damned if you don't.  Thanks.  I don't qualify for the "other free product." I'll pay $80 to report an extra $16 of "extra income" for performing my civic duty, just to be legitimate.  Great.  

[mesquitebean]

@benzee01 

NOTE:

Online Deluxe is currently $40 for Federal and $40 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.)

You'll avoid that extra $40 (or $45) fee if you pay upfront with credit/debit card or a prepaid debit card you can buy at at a store.

[mesquitebean]

@benzee01 

I added this info above to my original answer, but you may have been emailed and read the original answer without it, so I'll put it here again.

Did you get a 1099-MISC or 1099-G from the Court?  Often the Court doesn't send any form at all.
FAQ: Where do I enter jury duty pay?

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-jury-duty-pay/01/26290

[benzee01]

I did not receive a 1099, but I do have the check stub from the Court.  I will add my opinion that it is quite ridiculous that TurboTax requires an upgrade to report income from a legally required civic duty.  That is all. 

[mesquitebean]

I realize it doesn't make sense.   Unfortunately, this is a public user community forum, not a direct route to the folks at TurboTax.   When the IRS started using Schedules 1-3 two or three years ago, TurboTax made the Free Edition very restrictive, and if any of those schedules are required, Free Edition normally cannot handle it, except I think they did add reporting for unemployment income this year.

[mesquitebean]

@ benzee01 

When you were in Free Edition and tried to enter jury duty pay, did you immediately encounter a screen that told you had to upgrade?   Or did you only get such a prompt when you were finishing your return?  i.e., where/when did you get the prompt to upgrade--was it when getting ready to file?

I just ran a scenario in Free Edition and entered jury duty pay, and it did NOT (at least not yet) tell me to upgrade, but I haven't prepared anything else in the return to get to the end, which I can't do in a test.

[benzee01]

I don't recall being prompted when initially entering jury duty pay.  After doing reviews and before going to file, it is now telling me I must upgrade.

[ToddL99]

Since you only received a check (not a Form 1099-MISC), you can enter the amount as Other Reportable income. This avoids the need to use either the 1099-MISC interview or the Business Income features of higher versions of TurboTax.

(While an amount of $16 won't have much effect on your tax calculation, the economic reality is that you almost certainly incurred out-of-pocket expenses in the course of performing this jury duty (e.g, mileage, parking, meals).  For this reason, you would be justified in treating this payment as a reimbursement, not reportable income).

If you choose to report it, go to the Other Reportable Income  interview, the very last interview in Wages and Income (Federal Taxes tab > Wages & Income category > Less Common Income subcategory > Miscellaneous Income sub-subcategory).  For the Description, enter "Jury Pay". 

(Or enter "other reportable income" in the Search Box and select "jump to other reportable income". These payments are NOT wages). 

This income will appear on Line 8, Form 1040.

[benzee01]

Thanks, Todd, however after making the changes, it appears I must still upgrade to Deluxe.  I will attempt to clear and start over when I get home from work this evening.  (I was also having trouble trying to remove Schedule C and vehicle used in 2019 for rideshare, which I did not perform in 2020.)

[benzee01]

Todd, I cleared and restarted filing from the beginning, without entering any Jury Duty Pay.  Upon completion, before beginning the Review Phase, I searched for "other reportable income" as suggested.  Clicked "jump to other reportable income" as suggested, and I was immediately prompted with the requirement to upgrade to Deluxe in order to proceed......I didn't even enter the Jury Duty Pay information yet......I click through as if this doesn't apply and I am stuck in a loop that repeats the upgrade requirement.  Your thoughts?  I presume I will be required to perform the affirmative to my original question.  Thank you in advance for your help.  Kind regards, Ben.  P.S. It appears I was successful in omitting the previous year's Schedule C on this filing attempt. 

[ToddL99]

Unfortunately, you will have to upgrade to Deluxe. "Other reportable income" requires a Schedule 1 and TurboTax Basic does not support Schedule 1.