I put in my 1098-T and it says that I don't qualify for the Lifetime Learning credit, yet when I try to file it says that I do and requires me to get Deluxe edition. Why?

It is because that Lifetime Learning Credit is a nonrefundable credit meaning you can only take the credit up to your tax liability.  If you do not have any tax liability, you would not qualify for the credit.  When you first entered the Form 1098-T, you probably do not have any tax liability to start with, so you do not qualify.  As you enter more information like the wages and income, your tax liability starts to build up and make you qualify for the credit. 

The Free Edition is only for simple tax returns. You won't be able to claim higher education expenses and credits with this version.  I would suggest you to follow prompts to upgrade to the Deluxe edition.  

To return to the Form 1098-T section, here are the steps:

• Sign in to your account, select Pick up where you left off
• At the right upper corner, in the search box, type in "1098t" and Enter
• Select Jump to 1098t
• Follow prompts

If you have paid qualified education expenses and meet certain requirements, you may qualify for an education tax break including the American Opportunity Tax Credit AOTC, Lifetime Learning Credit or Tuition & Fees deduction. To see if you qualify, here are the links: 

Qualified expenses

Deductions

Credits