United for Ukraine (U4U)

[YP55]

Hi.

I am helping old lady ( 97 years old ) with her first tax filing.

She arrived here from Ukraine under United for Ukraine (U4U) program with Ukrainian Humanitarian Parole (UHP) status in the end of 2023 and lived here in NC for all 2024.

She does not have any taxable income. The only tax related document she received is 1095-A about Health Insurance Marketplace coverage.

As I understand she needs to file 2024 taxes.

My two questions are:

1. Does she need to file only federal or states taxes as well?
2. What TT product is best to use? I think free TT WEB version does not allow to file electronically.

Thanks for your help.

[MaryK4]

She would only have to file if received the Advanced Premium Tax Credit.  Unfortunately, if she had no income, she does not qualify for the credit.  She would not have to file a North Carolina tax return, and she may be able to file with the free version, but she may be required to mail.  

[YP55]

Thanks Mary.

But I think she received tax credit.

This is why.

I used free WEB TT and entered all zeros for income and numbers from 1095-A.

TT generated form 8962 that reflects Premium Tax Credit (PTC).

Final numbers for taxes owned or refund are all zeros, but form 8962 Premium Tax Credit (PTC) is populated.

TT is also generated NC state taxes.

And you are correct: TT is asking to file by mail.

So, my questions are: Should we file? What would be Pros or Cons of filing vs not filing? And also filing or not state taxes?

Thanks again for your help.

[ThomasM125]

If she received a premium tax credit, reported in column C of form 1095-A, then she should file a federal tax return but the state tax return does not have to be filed. If she doesn't file a tax return, most likely the IRS will contact here and request that she file it. She doesn't owe any income tax but it is possible she owes all or a part of the advance premium tax credit back so that is why she should file the return, so the government knows what her income is that may affect her eligibility for the premium tax credit.