I have a dependent child with a 1098-T that has unqualified income. I also get Premium Tax Credits for the Health Insurance Market Place. Turbo Tax did not handle this scenario properly and I believe I now will have to file an amendment to correct this.
When I did my taxes and entered my dependent child's 1098-T, TurboTax let me know I would need to file a tax return for my dependent child. I completed my taxes and passed all the checks and verifications and filed my taxes. Great ... on to my dependent child's tax return.
In the process of filling out my child's tax return it dawned on me that unqualified income from a 1098-T qualifies as household MAGI for the purpose of qualifying for Premium Tax Credits which reduces the amount of Premium Tax Credits I would receive.
Now I believe I have to file an amendment to my (the parent) tax return to include my child's AGI for the purpose of Premium Tax Credits. I do not believe TurboTax handles this scenario properly.
I believe TurboTax should recognize after entering a 1098-T that a dependent child's tax return should be completed first before completing the parent's tax return. After completing the child's tax return, the parent can then continue their tax return and import the AGI from the dependent child's tax return for the purpose of calculating Premium Tax Credits?
