Does turbo tax work in this situation: In-laws first time filing taxes in America. They became us green card holder last year no income but just got advance tax credit

[sandrawa]

Does Turbotax work if your income is 0. And you only need to file due to Monthly advance payment of premium tax credit. I need to file taxes for my in-laws because they are receiving the monthly advance payment of premium tax credit. However, they have no other income. Will Turbotax work in this instance? They are in california. 

[DoninGA · Accepted solution]

If there is no taxable income and you want to e-file the tax return instead of mailing the tax return then you will need to add $1 of interest income on Form 1099-INT so the return can be e-filed.  Enter any name in the Payer/Received from box and $1 in box 1 of the form

To report interest income received -

Click on Federal Taxes (Personal using Home & Business)
Click on Wages and Income (Personal Income using Home & Business)
Click on I'll choose what I work on
Under Interest and Dividends
On Interest on 1099-INT, click on the start or update button

To enter your Form 1095-A -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Deductions and Credits
• Click on I'll choose what I work on (if shown)
• Scroll down to Medical
• On Affordable Care Act (Form 1095-A), click the start or update button

Or enter 1095-a in the Search box located in the upper right of the program screen. Click on Jump to 1095-a

[sandrawa]

Thanks. Is there anything that needs to be done differently since this is first year tax return?

[DoninGA]

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@sandrawa wrote:

Thanks. Is there anything that needs to be done differently since this is first year tax return?

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No, nothing special needs to be entered on the tax return even when it the first federal tax return filed.

[sandrawa]

Thanks one other question. Which edition of turbotax should I buy? 

[DoninGA]

If you are going to use the TurboTax online web based editions then you will need to the Deluxe edition to report the Form 1095-A and the Form 8962.

If you are going to use the TurboTax desktop CD/Download editions then any of the editions can be used since they all support the same forms, schedules and worksheets.  You only get more help and assistance with the higher editions - https://turbotax.intuit.com/personal-taxes/cd-download/

[sandrawa]

Thanks which system is more powerful and/or easier to use?

[DoninGA]

The software in both the online and desktop editions is basically the same, only the user interfaces are different.

My personal preference are the desktop editions since it is always available, no internet needed except for software updates and for filing.  And the user has direct access to all forms, schedules and worksheets using Forms mode, not available with the online editions.  I also like the user interface better with the desktop editions versus the interface with the online editions.