How to calculate PA Tax Forgiveness Credit correctly in my situation?

[lovelytaya]

I moved from another country to the state of Pennsylvania. My son claims me and my husband as dependent on his tax returns. My husband and I had no income in 2023. I have 1099-INT for $300 and, unlike my husband, have to file PA taxes (I also plan to file federal taxes, although I don't have to). I'm filing both federal and PA taxes as married filing separately. I have to pay $9 in taxes on that interest, but TurboTax claims that I'm eligible for PA Tax Forgiveness and don't have to pay anything which I believe is wrong because my son is claiming me on his tax returns and he is not eligible for PA Tax Forgiveness meaning that I'm automatically not eligible as well. Is that correct? 

My eligibility status is Married. Turbotax asks me to choose the best option that describes my situation: 1. Claiming tax forgiveness jointly. 2. Filing separate PA returns. 3. One of us is claimed on our parents, grandparents, or foster parents federal tax returns. 4. We lived apart for less than six months of 2023. I chose option 2 (File separate PA returns) although my husband doesn't file taxes in 2023 at all. There is no option  there asking if someone else, besides my parents, can claim me and my husband on their tax returns. Do you think I described the situation correctly?

Once I'm finished with PA returns, Turbotax keeps asking me to recheck the entry in the eligibility questions section: 1. Are you dependent on another taxpayer's (parent, guardian, step-parent, etc.) federal tax return? I checked the box previously, so it's checked and grayed out. 2. If you answered 'Yes' above, does the taxpayer on whose return you are a dependent qualify for tax forgiveness? I didn't check that box because my son is not eligible.

In my understanding, I should not qualify for tax forgiveness, yet Turbotax claims I am. What did I do wrong? Can someone help with this?

Thank you,
Taisiya

[Vanessa A]

If you are claimed as a dependent on another persons return, you are not eligible to claim PA SP Forgiveness. 

It sounds as though you are doing it correctly.  Since you are not eligible for the credit, it would be easiest if you would just delete the form for PA SP Forgiveness. 

You can do this by going to forms mode and clicking Delete Next to PA Schedule SP.

1. On the menu bar on the left that shows. 

1. Select Tax Tools 
2. On the drop-down select Tools 
3. On the Pop-Up menu select Delete a Form 
4. This will give you all of the forms in your return 
5. Scroll down to the form you want to delete 
6. Select the Form 
7. Click on Delete. 

Always use extreme caution when deleting information from your tax return.  There could be unintended consequences. 

[lovelytaya]

Thank you! I will delete it. If for some reason they determine I do qualify for tax forgiveness, would I receive that payment back or it doesn't work that way?

[Vanessa A · Accepted solution]

When you go back through the questions, you can answer No, I know I do not qualify for the SP question.  This should keep you from having any issue with getting the payment back.  The fact that your son claims you makes you ineligible.  So, if they did send you the $9, you would need to send it back and explain that you are claimed as a dependent on your sons return and he is ineligible for the SP Forgiveness.