I don’t know what you are complaining about. There are two classifications of dependent, “qualifying child,“ and “qualifying relative.“ A grandchild who lives with you more than half the nights of the year, and is permanently disabled, will be considered a “qualifying child dependent.” If your grandchild has more than $4300 of taxable income to report, they can’t be a qualifying child dependent and will be a qualifying relative dependent, even if the money was earned in a sheltered workshop. However, there is very little difference in tax benefit between being a qualifying child or a qualifying relative dependent.
For a 2020 tax return, the economic recovery rebate is limited to dependents age 16 or under. The $2000 child tax credit is also limited to dependents age 16 and under. This is not a failure of TurboTax to classify the dependent properly, it is an age limit written into the laws.
If you have not already ready received round three of the economic stimulus, this is $1400 per person including dependents of any age, the IRS should be issuing payments as incoming tax returns are processed.
For 2021, the child tax credit has been expanded to $3000 and the age limit has been extended to 17, rather than 16, but this will still not benefit you.
It’s not clear what benefit you think TurboTax is denying you.
