I have a weird tax situation/result that does not feel right. Using Turbo Tax Deluxe to file for my mother. She is over 65 and needs to file because of some stock sales and home sale this year. Federal AGI ended up negative because of stock sale losses. Only other income is SocSec. Fed return is fine and she owes zero. Move to State returns and Indiana has an elderly tax credit ($100) that she qualifies for. I added her property taxes paid just because I have them, but everything else on state form is zero. State AGI is actually negative. So I was expecting a zero due state, BUT because of the elderly tax credit Turbo Tax say she is due a refund of $100. IT-40 form has $100 Indiana credit line 14 and Taxes paid line 15 is 0. So 100 refund. That is the part that does not feel right. No income, paid no state taxes, but yet gets a refund?
Am I looking at this wrong? Passed all Turbo Tax checks. I tried to edit the credit to remove it but Turbo Tax wont let me edit that part of the form. Am I just to trust the software and proceed with filing?
