Why is turbotax ADDING $6300 to my granddaughters income instead of subtracting it . I did claim her again this year as she is in college .

[avereyirelandl]

I understand she wont get the $4050 exemption but still should get the single deduction of $6300  . Lets say she made $7000 last year she should have a deduction of $6300 leaving her with a taxable amount of $700 . Turbo tax is ADDING the $6300 giving her a taxable amount of $13300 . WHY? I have never had any issues with claiming her before or her with filing her taxes . I know she has a reduced amount she will get back by my claiming her her but I have never seen this before . She is now in college and is 19 but I dont see how that would affect  her $6300 deduction . Would appreciate all the answers I can get as this could be very costly .

[IsabellaG · Accepted solution]

You are correct that given the figures you show, your granddaughters taxable income should be only $700. And that's the way it works when I enter the figures in TurboTax. 

Check to see that your information is entered correctly. Is the income increased by exactly $6300? Was her income entered twice? Try clearing the return and starting over, and respond here if you still have a problem.

[jjbaggins57]

Yes it increases by exactly $6300. Is there any scenario that this would happen ? Will try to clear everything and start all over again .

[IsabellaG]

There should be no reason to not only not give her the standard deduction but also add it to her taxable income. I thought that there might be a penalty, such as repayment of the Healthcare Advance Premium Credit, but that wouldn't apply to her as a dependent. Also, try previewing the return to see where the $6300 shows up on the return.

To preview your tax return:
• Go to  My Account at the top of your screen.
•  Choose Tools.
• In the Tools Center, choose View Tax Summary.
•  In the Tax Summary, choose Preview My 1040, at the top of the tax summary.

[jjbaggins57]

Went back and cleared everything and started completely over again . Worked fine this time .

[jjbaggins57]

Thank you

[IsabellaG]

Thanks for letting me know!