ACA & Child Filing Question

[Dom2]

ACA Question 

My student daughter does NOT meet income requirements to file.  If she files she receives approx $110 refund.  But I believe I then would have to select "Have one or more dependents on my taxes filing a separate return" and enter her AGI.  This impacts my taxes negatively by $348.  Since she doesn't have to file I'm thinking not filing her taxes, and giving her the refund out of my tax savings.  

That sound about right?

[Bsch4477 · Accepted solution]

Since she doesn’t have to file you can ignore her income for ACÁ.  There’s a difference between having to file and filing only to get a refund of tax withheld. 

[Dom2]

Are you suggesting not check the box "Have one or more dependents on my taxes filing a separate return" OR checking it without entering AGI?  Thanks

[Bsch4477]

Check it but don’t add his income since he didn’t have a filing requirement. If the program gives you a problem with that then don’t check that he is filing.  Bottom line is that a dependent filing only to receive a refund does not have their AGI added to the parents AGI for ACA considerations.

[Dom2]

Thank You