FEDERAL TAX BELOW MINIMUM - BUT TURBOTAX CREATED A FEDERAL RETURN

[DaveW8]

I USED TURBOTAX PREMIUM TO ENTER GRANDDAUGHTERS 2023 AND 2024.  BOTH YEARS SHE HAD EARNINGS BELOW THE IRS REQUIREMENTS (APPROX. $14,000).  BUT TURBO TAX CREATED FEDERAL RETURNS AND SHOWED A REFUND FOR 23, AND PAYMENT DUE FOR 24.  STATE OF INDIANA ALSO HAS A BLOCK TO CHECK TO DETERMINE IF FEDERAL TAXES ARE GOING TO BE FILED, AND IT ASSUMES THEY WILL BE FILED.  AS BOTH YEARS ARE BELOW THE FEDERAL MINIMUM EARNINGS,  NO FEDERAL FORMS WILL BE FILED.

1. IS THERE A WAY TO PREVENT THE FEDERAL FORM FROM BEING GENERATED IF THE EARNINGS ARE BELOW THE IRS MINIMUM?

2. IS THERE A WAY TO OVERRIDE THE INDIANA STATE FORM TO INDICATE NO FEDERAL RETURN IS BEING FILED?

[xmasbaby0]

There are many people who had less income than the filing "requirement" who choose to file in order to seek refunds of the amounts withheld from their paychecks.   Even if your grandchild earned less than the 2023 filing threshold of $13,850 for 2023 or $14,600 for 2024, if she has amounts in box 2 or box 17 of her W-2 she can file a return to seek refunds for federal or state tax withheld.  TurboTax does not prevent anyone from preparing a return if they have less than the filing requirement.  

Information flows from the federal return to the state return, so in order to use TurboTax to prepare a state return, you must first prepare a federal return.   

[VolvoGirl]

If it shows a federal tax due then she needs to file federal.  Why does it have a tax due?  What kind of income does she have?  Just a W2 or did she get a 1099NEC?  You have to file a 1099NEC for any amount.  Did she have any interest, dividends, or investment income?  

Also the Standard Deduction for a dependent can be less than the full Standard Deduction.  It only covers W2 and 1099NEC income.  So if she has other income she might owe tax on it.  

[SteamTrain]

....or was it a Federal refund of $23, and an Indiana tax due of $24???