Q. Think we can go back an amend now?
A. Maybe. But, if you used TurboTax last year, the ODC should have been automatic. So, you may have answered something wrong in the interview. You say they're college students. For the dependent rules, it makes a difference whether the 20 year old is a full time student or not.
There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.
A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
- He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
- He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
- He lived with the parent (including temporary absences such as away at school) for more than half the year
So, it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on himself.
But, if he was not a full time student, he can only be a Qualifying Relative and that has a $4400 income test.
See full dependent rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Ret...
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The maximum credit amount is $500 for each dependent who meets certain conditions. For example, ODC can be claimed for:
- Dependents of any age, including those who are age 18 or older.
- Dependents who have Social Security numbers or individual taxpayer identification numbers.
- Dependent parents or other qualifying relatives supported by the taxpayer.
- Dependents living with the taxpayer who aren't related to the taxpayer.
The credit begins to phase out when the taxpayer's income is more than $200,000. This phaseout begins for married couples filing a joint tax return at $400,000.
A taxpayer can claim this credit if:
- They claim the person as a dependent on the taxpayer's return.
- They cannot use the dependent to claim the child tax credit or additional child tax credit.
- The dependent is a U.S. citizen, national or resident alien.
https://www.irs.gov/newsroom/an-overview-of-the-credit-for-other-dependents#:~:text=The%20credit%20b....
