This form is not working for my situation which is that the parent tax rate is actually 0%, so lower than the child tax rate. There are several areas that are a problem. first, it forced me to check "single" as the parent tax rate when I file "head of household." Then, it didn't prompt me to enter how much of the total income was LTCG and qualified dividents. I had to add those manually. Do that "exploded" the calculations, creating a tax that was double my daughters taxable income. It works correctly ONLY if you assume all the parental income is earned. I manually did all the entry manipulations and the manual math.
So, my only choice at this point is to manually enter a "0" in line 9, which makes the tax return ineligible for e-filing. Yesterday, I talked to someone on the phone at TT who offered to call back and help me go through the entire form, but then she ghosted me. I just want to make sure I am doing it correctly, so I don't attract the attention of the IRS for suspected tax evasion because it's likely rare the parents rate is 0%. I did the math, had I taken the unqualified 529 deduction that triggered this mess instead of having it distributed to my daughter, I would have saved myself $800 as all I would have had to pay was the 10% penalty. Hopefully Turbotax is calcuIating my taxes correctly. I checked this to make sure the form wasn't making my daughter pay what it thought was MY incremental tax instead of having HER income taxed at my "supposed" rate.
Since this will unlikely be fixed in a usable time frame (because it wasn't fixed last year when pointed out), can you offer me a free review for accuracy??
