In the weeds (for me) tax questions

[rodi]

SOLVED. Thanks all.

I have two situations that I need some advice/help on.

Background: Younger son gets SS because he is a minor and DH is collecting SS. Younger son had a job last year and earned about $4k of income.

I've been digging into turbo tax and the internet for answers to my two questions.

Question 1: Does the SS factor in to either our (parents) tax filing or son's? It appears it does not - since our son's income was below the deduction amount. Turbo tax would not let me enter it on either form. Just looking for confirmation from this intelligent group of wonks. (Wonk is a term of endearment in my world.)

Question 2: I've completed son's tax filings so he can get his withheld tax back. There does not seem to be a place to input his earnings on our filing to correctly address the Obamacare premium tax credits. I know that the tax credits are based on *household* income, including the kids w2 income, but there doesn't seem to be a way to include that for the PTC calculations. Any idea of what form I should be looking for?

Thanks in advance.

 

[kaneohe]

https://www.irs.gov/pub/irs-pdf/f8962.pdf

how about this form up near the top......
the instructions say this tho:
"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"

 

[pb4uski]

On question 1, I think his SS income and $4k of earnings would be on his return and excludd from yours.... and because his income is less than the standard deduction for a single then his taxable income and tax will be zero and he'll get all of his withholdings back in his refund. I would think that TT would allow you to enter his income on a 1099-SSA... try going to forms view and add a 1099-SSA.

 

[pb4uski]

https://www.irs.gov/pub/irs-pdf/f8962.pdf

how about this form up near the top

Looks like line 2b.

 

[kaneohe]

from Pub 4012 p.A2

"Single Dependents

Under 65 and not blind
You must file a return if any of the following apply.
1. Your unearned income was over $1,100"
2. Your earned income was over $12,200.
3. Your gross income was more than the larger of —
a. $1,100, or
b. Your earned income (up to $11,850) plus $350.


I think the 1100 is the std deduction for dependents . I'm guessing the SS is more than that ? so you get to not file, not because the SS is less than the "normal" std deduction of 12K+ (for dependent it is 1.1K), but because "In this chart, unearned income ............................also includes................ taxable social security benefits. If little other income, the SS is not taxable so unearned income does not exceed 1K and gross income does not exceed earned income.

 

[pb4uski]

I think you're right that the standard deduction is limited. Forgot about that.

 

[rodi]

Thanks all. I could not find it anywhere in the 'step by step' mode... but entering on the form did the proper adjustment for the household AGI. (And thankfully, we're still on the tax credit side of the cliff.) Kind of crazy having a household with medicare recipient, dependent over 18, dependent under 18, and me... HSA accounts for the boys and I - with contributions and withdrawals... and HSA withdrawals from hubby's frozen HSA account for dental stuff...

I appreciate all the help and wisdom!!!