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Get your taxes done using TurboTax
Wow, guess I hit a nerve with my question. I did not think about the self-employment income requiring a dependent to file a return, but that is a good point and thanks to TaxGuyBill for addressing that. In going through 2018 Turbo Tax Deluxe step by step this year, when you come to this question the wording needs to be improved because it just says "required to file a tax return and is filing a separate tax return". This wording could cause someone to make a huge mistake and include a dependents income in the MAGI for PTC purposes, potentially causing a significantly lower PTC or no PTC, could cause tax due when actually no tax should be due. I actually had to catch myself and read that statement about 4 times, the key word is the "AND" because if the dependent is NOT required to file a return then the whole statement becomes FALSE and the check box should NOT be checked. But if the actual law says the dependent must have taxable income, then the Turbo Tax question does not even say that at all, so should be changed to what the law says.
‎June 5, 2019
11:18 PM