This is tricky, and it feels like TurboTax is making mistakes here.
I have 4 returns. Me and 1 each for my three daughters.
All were going to community college in '23. All have a 1098-T. I'm claiming each as a dependent.
Each were entered as more than half time and each were entered as pursuing a degree.
Each also have investment income so they all should have 8813's with each other's numbers and mine on them. The younger two have wages. The oldest does not. Wages were very small. (<1K)
There are two oddities I'm struggling with here.
1) on the 22 year old's return, TurboTax is giving her the American Opportunity Credit and Lifetime Learning Credit and bringing her taxes down by $1K or pushing her to owe nothing. (The $1K she would owe is based on her investment income at MY tax rate)
But you said she can only take this if she's not a dependent, and her forms are marked that she can be taking as a dependent. (1040 Standard Deduction - someone can claim you as a dependent = YES)
Should I report the 1098-Ts with MY taxes rather than theirs??
They've got their SSN on them.
2) The 20 year old has slightly less investment income, but also worked. wages = less than 1K. Dividends more than 7K
She isn't being asked for the 8813 form. TurboTax won't let her use it.
It says she's not subject to the kiddie tax because she was a full time student (True)
she supplied less than half her own support from earned income (true)
she is a dependent on another return (true)
But those are all true for each of my kids.
So now my three kids with virtually identical income and expense profiles have very different tax profiles.
The only difference is the oldest had no wages.
The 22 yr-old is paying 0% federal. (education credits)
The 20-yr old is paying 2.9% federal (her own tax bracket)
The 18-yr old is paying 11.9% (based on my rate - I'm in the 24% bracket)
I can't tell if I'm making an error or TurboTax is, but it sure seems like the software is!
Any suggestions or ideas of where I could look to fix this?
