First off, I think I'm realizing that my two kids, 23 and 19 didn't have to file a return because they didn't make 12,550 each.
Not necessarily
They must file a return if any of the following apply.
• Their unearned income was over $1,100.
• Their earned income was over $12,550.
• Their gross income was more than the larger of—
• $1,100, or
• Their earned income (up to $12,200) plus $350.
Other situations where they mat need to file
1. they owe any special taxes, including any of the following.
a. Alternative minimum tax.
b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. But if you are filing a return only because you owe this tax, you can file Form 5329 by itself.
c. Household employment taxes. But if you are filing a return only because you owe this tax, you can file Schedule H by itself.
d. Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer who didn't withhold these taxes.
e. Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts. See the instructions for Schedule 2, line 8.
f. Recapture taxes. See the instructions for line 16 and Schedule 2, lines 10 through 18.
2. N/a for dependents
3. They had net earnings from self-employment of at least $400.
4. they had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes.
5. Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage through the Marketplace. You or whoever enrolled you should have received Form(s) 1095-A showing the amount of the advance payments.
6. Advance payments of the health coverage tax credit were made for you, your spouse, or a dependent. You or whoever enrolled you should have received Form(s) 1099-H showing the amount of the advance payments.
7. You are required to include amounts in income under section 965 or you have a net tax liability under section 965 that you are paying in installments under section 965(h) or deferred by making an election under section 965(i).
you enter their MAGI. So, what if you have two? There's no option to enter two.
see below if you need to include them then use worksheet 1-2
Enter on line 2b (form 8962) the combined modified AGI for your dependents who are required to file an income tax return because their income meets the income tax return filing threshold. Use Worksheet 1-2 to figure these dependents’ combined modified AGI. Do not include the modified AGI of dependents who are filing a tax return only to claim a refund of tax withheld or estimated tax.
Worksheet 1-2. Dependents' Combined Modified AGI—Line 2b
1. Enter the AGI* for all such dependents from Form 1040, 1040-SR, or 1040-NR, line 11............
2. Enter any tax-exempt interest for your dependents from Form 1040, 1040-SR, or 1040-NR, line 2a..
3. Enter any amounts for your dependents from Form 2555, lines 45 and 50................
4. For each dependent filing Form 1040 or 1040-SR: If line 6a is more than line 6b, subtract line 6b from line 6a and enter the result..............
5. Add lines 1 through 4. Enter here and on Form 8962, line 2b.........................
