FIXED: Found the problem-- the Form 8862 template used by TurboTax has the No boxes checked. (The template should have nothing checked.)
HOW: I took the us_ind_8862.pdf and edited it using a PDF editor app, wiped out the 'x' in the No checkboxes and saved.
Note: Replacing the TurboTax us_ind_8862.pdf with the official, downloaded IRS PDF did not worked.
