Why must I upgrade to deluxe to file a tax return with unemployment benefits when I did not have to last year?

[dat_phat_cat]

I got unemployment benefits in 2020 and did not need TuboTax Deluxe to file. I lost my job in 2021 and got unemployment benefits, and now TurboTax is prompting me to upgrade to Deluxe. Why?

[H0ud1n1dead]

Don't believe you need to upgrade just for unemployment.  They are always prompting offers to upgrade just to sell.  You should be able to report your unemployment benefits received per your 1099 without the upgrade.

[DianeW777]

You can use the link below to see what is available to use for TurboTax Free.  It does look as though you need to upgrade to TurboTax Deluxe Online for unemployment income.  TurboTax CD/Download will allow unemployment in the Basic version.

• TurboTax Online Product by Form (Scroll down to see each product and forms or income available.)
• How do I switch From TurboTax Online to TurboTax CD/Download?

@dat_phat_cat

[dat_phat_cat]

My screen states the following:

Based on your tax situation, you need to upgrade to TurboTax Deluxe

— Your current product —
Free Edition

Free Edition is only for simple tax returns.
You won't be able to report unemployment income or paid family leave benefits.

Required for your tax situation —
Deluxe

Deluxe covers unemployment income and paid family leave benefits, which is reported to the IRS on Schedule 1.

<Back    [This doesn't apply to me] [25% off Deluxe]

If I press "This doesn't apply to me" it just takes me back to the previous screen as if I haven't started my 1099-G unemployment benefits, and it shows the dollar amount from 2020's information.

[LenaH]

Unemployment compensation is reported on Schedule 1. Credits, deductions, and income reported on schedules 1–3 are not covered in TurboTax Free Edition. 

Because unemployment is not included in TurboTax Free Edition, the program is prompting you to upgrade to TurboTax Deluxe. TurboTax Deluxe includes the 1040 form with itemized deductions (Schedules 1–6, Schedule A and Schedule C income), along with everything in Free Edition and PLUS.

@dat_phat_cat

[dat_phat_cat]

Yep. I'm looking at my 2020 returns right now, and sure enough the Schedule 1 is included and has all the unemployment information. It was part of the Free Edition in 2020, and now in 2021 TurboTax is charging money for it, even though it's the SAME simple form and process as before.

Again, my question is why it's asking me to upgrade. It clearly isn't needed, since it was done for free last year.

Just checked on some other sites, and they are offering to do Federal and State with unemployment Schedule 1 for free. I guess I'll go check with them and see what happens.

[dat_phat_cat]

And I just got done e-filing my Federal and State tax returns WITH unemployment information included FOR FREE on H&R Block! TurboTax has no reason to charge almost $100 to e-file an easy return that it e-filed for FREE last year! I'll be sticking with H&R Block now, Turbo Tax. SEE YAAAAA!!!!!