Turbo Tax Free Simple with one 1099-DIV

[alexat423]

In the past, I could do my child student taxes for free with 1099-div form, why are they charging me now?  The 1099 is less than $150 it seems crazy to be upgraded to pay $60 for this, Turbo Tax changed something.

[rjs]

I don't know why $150 of ordinary dividends would require an upgrade. Are there Section 199A dividends in box 5 of the 1099-DIV? That requires a form that is not included in Free Edition. Or there might be something else that you're not recognizing as requiring an upgrade.

If your child's 2022 Adjusted Gross Income (AGI) is $73,000 or less, see if you can file for free using IRS Free File.

[alexat423]

No just filled out 1a, 1b and 2a.  Last year it was slightly over $200 and free.  This year it is less and charging so need to use another site to file.  😥

[rjs]

What other income does the child have besides the 1099-DIV? If he has "unearned" income of more than $2,300 he is probably subject to "kiddie tax," which is not covered in Free Edition. Unearned income is basically anything other than income from a job or self-employment. It could be other investment income, including interest, unemployment, taxable scholarship income, etc.

If the student is claiming the American Opportunity Credit, Lifetime Learning Credit, or student loan interest deduction, none of those are included in Free Edition either.

None of this solves your problem, but it might identify why TurboTax is telling you that you have to upgrade.