Thank you for the explanation. I was thinking there might be an error with Turbotax. To be clear (and I might not have been before), I have answered the questions as follows:
Personal Info. Worksheet, Part II:
question 1 - "CAN another taxpayer (such as your parent) claim you as a dependent? - Answer "yes"
question 2 - "If 'yes' to Q1, are you actually claimed as a dependent on that person's tax return? - Answer "No"
If I answer Q2 as "yes" then he loses the AOTC ($2,500) and his refund goes to a payment. That swing is way more than the $500 credit I would get on my return for Other Dependents.
Lastly, and I keep reminding myself to continue to ask about this, why is he getting additional income to report for earning on the 1099-Q box 2. It looks like there is a calculation being done and he's subject to 65% of the earnings as additional income. Is this the "Kiddy tax?" I am seeing Form 8615 being generated in his return and I had not made that connection until now.
