TT doesn't seem to be determining 2018 Empire state child tax correctly. We are full year resident, have qualifying child, have a federal child tax credit. Why is it $0?

We appear to qualify, but turbo tax says $0 credit.  Note question 3 is an OR question, we meet the first part of that question.

Deductions & credits

Please clarify.  You are asking from TT Business, which is not used for personal tax returns.
GaGaGuava
New Member

Deductions & credits

I am having the same issue for the 2019 tax returns. I have already reviewed the link below

https://www.tax.ny.gov/pit/credits/empire_state_child_credit.htm

It appears the credit can be taken based on an "either / or" situation. 

  • you have a federal child tax credit, additional child tax credit or credit for other dependents (claimed on federal Form 1040 or Form 1040NR) or
  • your federal adjusted gross income is:  (see table on website)

I meet the requirements for the 1st bullet point but not the 2nd. However, since NYS states one or the other, it stands to reason I should still qualify. TT initially says my child qualifies and then returns a $0 amount. Could it be a system error? Thanks!

DaveF1006
Expert Alumni

Deductions & credits

The empire tax credit is based from your tentative tax owed on your federal return minus non-refundable credits.  If the tentative tax minus other non-refundable is less than $1000, then you do not qualify for the empire tax credit. Non refundable credits includes things like:

  • Saver's credit
  • Lifetime learning credit (LLC)
  • Adoption credit
  • Child and dependent care credit
  • Foreign tax credit (FTC)
  • Mortgage interest tax credit
  • Elderly and disabled credit
  • Residential energy efficient property credit

Go to tax tools>tools>view tax summary. Look at the amount of tentative tax on the seventh line of your federal tax summary. Whatever that total is, minus any of the non-refundable credits that are listed above. If  totals are less than $1000, then you will not receive the credit even though your child may qualify for it. i hope this will give you some type of an answer why you didn't receive the empire state tax credit.

 

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mhyatt
New Member

Deductions & credits

I have a 17k tentative tax on my federal return and I qualified for the federal child tax credit. I have 0 ny tax credits of any kind, and yet TT determines that I'm not eligible for empire state child credit. The software appears to be incorrect and I cannot find a way to correct it.

DaveF1006
Expert Alumni

Deductions & credits

At this point you may wish to contact a specialist that can work through that section of the return with you. The specialists can look at your return on their screen to find out exactly what is causing this issue and suggest how you can take corrective action if needed. They also can order a diagnostic copy of your return and specifically see why you are not receiving these credits in your New York State return.

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