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Level 1
February 16, 2023
Question

Is Taxpayer a Dependent of Someone else? Yes or No?

  • February 16, 2023
  • 1 reply
  • 9 views

I prepared a tax return that includes a Form 1095-A & Form 8962. The return shows that client was to receive a Premium Tax credit and that credit amount was part of the amount of Federal refund due the client as indicated on the Tax return summary sheet. I run a final review for errors. An error popped up asking me to check the box showing that the client is a dependent or not a dependent of someone else. The client is not a dependent of anyone one. Soon as I checked that box the refund suddenly changed to a different amount lower than the original amount. Fortunately, I did not submit the return before detecting that change. I tried all I could but could not find a solution to explain why the program was behaving in that manner. I need immediate help. Thank you.

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1 reply

Level 6
February 16, 2023

It does not calculate if they have to pay back any of the Premium Tax Credit until you click that box.

The amount of their subsidy / payback changed once they knew she / he was not a dependent.

Dusty