Helping my sister with her taxes. She's currently in grad school full time, paying tuition from her savings, while also doing a little freelance consulting. She's in her 50s.
She wound up with about 6K in 1099 income so TT showed her owing about $500. Then she added her 1098-T with 32K in tuition expenses. Then TT computed the lifetime learning credit and it zeroed out her tax owed, which makes sense. Then she added her ACA 1095 and it recomputed and gave her a 1300 health insurance premium tax credit and zeroed out her LLC education credit, saying she can't use the credit since she doesn't owe any taxes.
This seems backwards. Shouldn't she get LLC to reduce her tax bill to zero and then add on the ACA premium credit since that's simply an overpay of premiums based on her income level?
I'm wondering if TT doesn't handle this properly by default and if it needs some sort of override.
