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No, don't worry, you won't be penalized. And TurboTax doesn't really ask about the age, the program asks for the date of birth of a child, then calculates the age automatically. As long as you received the child tax credit or other credits related to your children (I'm assuming you qualify for them) you have nothing to worry about.
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No, it doesn't work like that. When you entered your dependent information, like name, social security, etc., you also entered the kids date of birth.
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