Form 8615 has incorrect filing requirements in TurboTax

[codyhalverson7]

A friend of mine is trying to file their tax return. TurboTax is requiring the filing of form 8615. Based on the filing instructions for this form from the IRS, they are not required to file the form. I have looked at similar questions posted, and it seems that TurboTax does not have the correct filing requirements. The IRS instructions state the following:

 Form 8615 must be filed for any child who meets all of the following
conditions.
1. The child had more than $2,500 of unearned income.
2. The child is required to file a tax return.
3. The child either:
a. Was under age 18 at the end of 2023,
b. Was age 18 at the end of 2023 and didn’t have earned
income that was more than half of the child's support, or

c. Was a full-time student at least age 19 and under age 24 at
the end of 2023 and didn’t have earned income that was
more than half of the child's support.
(Earned income is defined later. Support is defined below.)
4. At least one of the child's parents was alive at the end of 2023.
5. The child doesn’t file a joint return for 2023.

Please note that the filing instructions state that ALL of the conditions must be met in order for form 8615 to be required. My friend has not entered anything into TurboTax that would result in all of these conditions being met. 

Previous answers from TurboTax have suggested that they believe that ANY of the conditions must be met, but this is incorrect. 

Is there a way to bypass this incorrect requirement?

[JohnW152]

It’s often the case that a taxpayer may have unearned income that they’re not aware of, requiring them to file Form 8615, Tax for Certain Children Who Have Unearned Income. 

If your friend has a Form 1098-T with an amount in Box 5, Scholarships or grants, for example, and the Box 5 amount is greater than the amount in Box 1, Payments received for qualified tuition and related expenses, that difference would be considered unearned income. 

Your friend most likely entered something in the TurboTax program that's triggering this requirement.  If this situation doesn't describe their scenario, feel free to post back with more details.

[codyhalverson7]

Like I said in my initial comment, nothing was entered in the tax return that should trigger this form being required. 

[LindaS5247]

We would like to take a closer look into this to assist you.  In order to do this, it would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: Go to the black panel on the left side of your program and select Tax Tools.

1. Then select Tools below Tax Tools.
2. A window will pop up which says Tools Center.
3. On this screen, select Share my file with Agent.
4. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number.
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

Here are the instructions if you are using TurboTax CD/Download:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

Remember to come back and provide your token number in this thread.