Do I need TurboTax deluxe for Nonrefundable credits? First time self-filer confused

Hey everyone, I'm filing my own taxes for the first time and was using the free version of TurboTax. Everything was going fine until I tried to submit and got hit with a message saying I need to upgrade to the deluxe version because of "Nonrefundable credits 1030." I relocated from Minnesota to Arizona this past year, but all my information seemed correct in the system. Could my state move be triggering this requirement? Or did I mess something up in my filing? The deluxe upgrade is showing $112.98 total. I can pay it if I absolutely have to, but I'm a broke recent grad and was hoping to avoid the expense. Anyone know if there's a workaround or if I actually need this upgrade? Thanks!

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18 comments

Jade O'Malley

•8M

This is a classic TurboTax upsell tactic. The "Nonrefundable credits 1030" message usually appears when you have education expenses, student loan interest, or certain state-specific credits. Moving between states often triggers this because you might qualify for state-specific credits in either Minnesota or Arizona. Instead of paying for the upgrade, consider using alternative free filing options. The IRS Free File program partners with several tax software companies that provide truly free filing for people making under $73,000. FreeTaxUSA is another good alternative that charges nothing for federal filing and only $14.99 for state filing. If you're really set on using TurboTax, yes, you'll need the deluxe version to claim those credits. But honestly, it's not worth the $113 when other services will do the same thing for free or much cheaper.

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Jade O'Malley

•8M

Yes, the student loan interest deduction would definitely trigger that upgrade requirement. Unfortunately, you would need to start over with a new service. However, most people find that redoing their taxes on FreeTaxUSA is actually quicker than the first attempt since you already know what information you need. You'll need your W-2s and other tax documents handy, but FreeTaxUSA has a straightforward interface that many find less cluttered than TurboTax. It might take 30-45 minutes, but you'll save that $113. If you've already entered everything into TurboTax, you could also download your filled-out forms as PDFs for reference while entering info into the new system.

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Hunter Edmunds

•8M

I ran into the exact same issue last year with the "Nonrefundable credits" message! After some research, I discovered https://taxr.ai which saved me so much money and headache. It analyzed my tax documents and told me exactly which forms I needed and which tax software would let me file for free given my situation. Turns out I didn't need the deluxe version at all - TurboTax was just trying to upsell me. The site basically looks at your specific situation and recommends the best free or cheap filing option. Super helpful for state-to-state moves too since it knows all the state-specific quirks.

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Hunter Edmunds

•8M

It doesn't file your taxes - it just scans your documents and tells you which tax software would let you file for free with your specific situation. Think of it like a "tax software matchmaker" that prevents you from getting hit with surprise upgrade fees. Regarding security, they use the same level of encryption as banks and don't store your documents after analysis. I was skeptical too, but they just need to see what's in your documents, not keep them. Their privacy policy is really clear about this. It's basically just helping you avoid the TurboTax bait-and-switch by telling you upfront which service will let you file your specific tax situation for free.

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Andrew Pinnock

•8M

Coming back to report that I tried https://taxr.ai after responding to the comment above, and seriously, this actually works! I was so skeptical at first, but it analyzed my W-2s and 1098-E for student loan interest and recommended FreeTaxUSA. It showed me that I could file federal for free and state for just $15 instead of paying $119 for TurboTax Deluxe. The analysis took like 2 minutes and saved me over $100. It even highlighted that I qualified for education credits TurboTax wasn't showing me in the free version. Just wanted to come back and share since this thread helped me!

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Brianna Schmidt

•8M

If you're still wanting to use TurboTax specifically and you're having trouble with their customer service about this upgrade issue, I'd recommend trying https://claimyr.com to get through to an actual TurboTax rep. I was in the exact same boat last year - stuck with the "you need to upgrade" message and couldn't get a human on the phone. Claimyr connected me with a TurboTax rep in about 15 minutes when I'd been trying for days on my own. The rep actually helped me understand which specific form was triggering the upgrade requirement and gave me options. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Honestly, after moving states myself last year, I found that talking to an actual person cleared everything up much faster than forum advice.

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Brianna Schmidt

•8M

You're not paying just to talk to TurboTax - you're paying to skip their ridiculous hold times. The service calls them and waits on hold for you, then calls you when a human actually picks up. It saved me about 2 hours of hold time. You're right that companies should provide better customer service directly. But the reality is they deliberately make it hard to reach them to avoid giving support for issues like unnecessary upgrades. It's frustrating, but sometimes your time is worth more than the $20 or whatever it costs. Especially during tax season when hold times can be 2+ hours if you can even get in the queue before it fills up.

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Camila Jordan

•8M

I was dead set against using anything but TurboTax until I read this thread yesterday. I was also getting forced to upgrade for nonrefundable credits after a cross-country move. Called TurboTax using Claimyr from that link above and surprisingly got through in about 10 minutes. The TurboTax rep actually admitted that my student loan interest deduction was forcing the upgrade but said there was no way around it. So I hung up, tried FreeTaxUSA instead, and finished my federal AND state returns for $15 total. The interface wasn't as pretty but it handled my multi-state situation and student loan interest with no extra fees. Hate to admit I was wrong about the "scam" comment. Sometimes you do need help getting through the customer service maze.

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Tyler Lefleur

•8M

Just want to add that you should also check if you qualify for the IRS Free File program. If your AGI is under $73,000, you can use brand-name tax software (including TurboTax) completely free through the IRS website. The trick is you MUST access these services through the IRS Free File portal, not by going directly to TurboTax's website. Go to https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free and choose a provider. This way you get the deluxe features without paying anything.

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Tyler Lefleur

•8M

Yes, the Free File version will handle your student loan interest deduction without upselling you - that's the whole point of the program. Most Free File partners also include free state tax filing, though a few charge for state. The IRS page clearly shows which ones include free state filing. Since your AGI is $48,000, you'll qualify for every Free File option. Just make sure you access TurboTax (or whatever service you choose) through the IRS Free File portal link I shared, not by going to their website directly. If you go directly to their site, you'll get the commercial version with all the upsells.

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