@Hal_Al thanks for your reply...
The $1000 each that I'm referring to is the amount TurboTax added to their returns when I told it that they were not being claimed as dependents by anyone. They DID have part time jobs, but not nearly enough to support themselves... But I would think the tax code would be able to figure that out... TurboTax's error checker found nothing wrong after the change and the refund increase of $1000. In my daughter's case, TurboTax says that she would be getting a bigger refund than the tax she paid. Not surprising that these "urban legends" get going when the program seems to agree with it and then says there's almost no chance of an audit.
I'm not a risk-taker (at least with the IRS), so I'll probably keep them as my dependents... but I'm surprised that TTax doesn't throw up any red flags about this.
