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@Sue52 , a person can file a return at any time even if they are not required to.  However, if he is not required to, and is not filing just for a refund, the IRS instructions for 8962 state you shouldn't include his income.  You only include a dependent’s income if that dependent is required to file a federal tax return. It is expected that income estimates will vary from actual amounts reported, and that is ok.     I have researched this further, and @Hal_Al's research is correct.  I have updated my response above, and will copy here for you:   No, he is not required to file a tax return.  For the purposes of filing Form 1040, scholarships are considered unearned income (See: Pub 501).  California doesn't require him to file a return either (Dependent filing requirement).    In this case, the Kiddie Tax doesn't apply.  While the Kiddie Tax typically applies to children (under 18, or under 24 if a full-time student) who have more than $2,700 in unearned income, he is not required to file a 1040.  See What is IRS Form 8615: Tax for Certain Children Who Have Unearned Income for more information on the Kiddie Tax.   No, his income is not be included in the reconciliation.  The IRS instructions for 8962 state you don't include a dependent’s income if that dependent is not required to file a federal tax return.  

@user17707904013    What software are you using...Desktop or Online? IF Desktop...Windows or MAC.   i.e.....for desktop, might be time for a Manual Update (if on Windows Computer))  .............or  (just guessing) a full uninstall-re-install???

Follow up Question regarding the IHSS provider income. In box 14 of the W2 it lists CA-SDI as well as QUAL OT (overtime). I entered that amount where I thought I was supposed to, but I am getting an error saying the Overtime amount should not be greater than one-third of W-2 box 1 (wages) minus box 7 (social security tips). If I change that to 0, my refund goes down. But it doesn't seem I can proceed with this discrepancy. Anyone else in this predicament?

First wait to see if your return was accepted or rejected. Accepted: An amended return must be completed to make the corrections. Rejected:  Make the change before you resubmit your return through e-file. If it was accepted you can amend your tax return using the information below. The amended Form 1040-X will be ready later this month. The IRS is not willing to accept amendments until later in the tax season. Uses the links below for assistance and readiness. Tax Form Availability    - Check for the date it is available How to Correct Federal Tax Returns  Amend a tax return for the current tax year

Given your step-mother's age, she would have been subject to required minimum distributions (RMDs) which means that you, as a non-spouse beneficiary are required to take RMDs beginning in the year following herdeath.  The amount of the RMD is determined using your age at the end of the year following the owner's death.   The amount of the RMD is determined using the IRS Single Life Expectancy Table.  In addition to annual RMDs, the  entire account must be liquidated by the end of the 10th year following the death.     For the year of death, you (the beneficiary) must take any RMD your step-mother was required to make but did not.  You can use the same table from the link above to determine that RMD if applicable. 

To fix this error, please follow these steps carefully:   Make sure you have entered the previous year's IL AGI correctly Verify Your IL PIN  Make sure to enter all 8 digits (This is not your 5 digit federal PIN) Verify your IL drivers license or state ID number is entered correctly If it is your first year filing with IL, you will have to enter your IL Drivers License or state ID information Enter each field exactly as it is on your IL Drivers License or state ID (First Name, Middle Name, Last Name, Suffix (leave blank if necessary), and weight You may not use an out-of-state or expired drivers license You may need to print and mail your return if the reject continues after re-transmitting

What state?   And what/where is the roadblock?  Is there any message?   NOTE:  Have you already  efiled your Federal return separately, and if so, has it been accepted?   If you already efiled the Federal return by itself, you cannot efile the state return until the Federal has been accepted.  Or is it something else?   Have you gone through the state review section to check for any errors?