Does the program grant the new Other Dependent Tax credit without considering the Gross Income of the Dependent?

[DanielV01 · Accepted solution]

Yes, provided that the Dependent qualifies.  And unlike 2017, when the dependent could only claim the deduction, but not the exemption (a deduction of $6350), in 2018 the dependent may still claim up to the full $12000 deduction where earned income is involved (unearned income, such as taxable scholarship, falls under the same arrangement as last year but has even higher tax rates).

[millhouse_64081]

Why does the program not ask for Gross Income?  It has applied the credit incorrectly because the dependent qualifies for every criteria except they exceeded the gross income threshold of $4,150 and as a result, I should not be receiving the credit.

[DanielV01]

That also depends.  He does not have to have less than $4150 if he is your qualifying child.  If on December 31 he was under 19, or a student under 23, he is your qualifying child if he did not provide at least half of his own support.  He could have made more than $4150 in this test, and you would still get the $500 Other Dependent Credit.  Otherwise you wouldn't be able to claim him at all.

[millhouse_64081]

Thanks for the information.  Very helpful.  I didn't realize there were two separate tests.