College Student dependent Income below threshold.

[Daniro]

My daughter (21), a college student, had some part time jobs and summer jobs during 2024 earning a little less than 10k. In 2023 and 2022 she actually exceeded the threshold for filing taxes so she did. If she files this year she would receive like 400$ as a refund. She has been included in my taxes as a dependent every year and I am including her 1098-T on my file. The thing is if she files, I would have to include her income on the 1095A part on my taxes and that excess income would make me pay almost double of what she would be receiving (it would be like underestimated income for the health insurance marketplace). Of course if she does not file then than income does not need to be added, so my taxes would be lower. I understand that the option seems to be obvious, but I just wanted to be sure that both options are right and any no filing would not have any implications for her.

[Vanessa A · Accepted solution]

You are partially correct.  Since she is NOT REQUIRED to file, her MAGI does not count.  If she WAS REQUIRED to file because her income is higher than the filing threshold, then you would need to count her income.  So, you can file her return to claim the refund, marking her as someone else can claim her on her return and also not include her income as part of the household income. 

"the modified AGI of each individual whom you claim as a dependent and who is required to file an income tax return because their income meets the income tax return filing threshold"  Instructions form 8962

[Daniro]

Hi Vanessa. Thanks for your prompt response. If I understand correctly she can file her taxes and I do not need to include her income because she is not required to file (she just wants to). My confusion is because on TurboTax they ask about this not on the income part, but on the 1095-A section like:

Let us Know if these situations apply to you

This will help us get a better idea of your health insurance plan

Then there is a check mark box that reads "I have a least one dependent on my taxes who's is filing a separate report.

On the help you can read: 

How does having a dependent who’s required to file a separate tax return affect my 1095-A?

If you have a dependent who’s required to file a separate tax return, you’ll need to include their income in your modified adjusted gross income (MAGI). Your MAGI is the household income amount that’s used to calculate the premium tax credit you qualify for.

So, since she is not required to, I do not have to put the number.

Am I right?

Thanks again for your help.

[Vanessa A]

That is correct.  The key word there is REQUIRED.  Since she is not REQUIRED, you do not have to put a number there.