Ok so last year when using TT to file, my son was a qualified dependent child. This year TT says he is not.
He is still living at home, still in school full time, still under 24, etc. but this year they are asking if his income is less than $5050. That is a question that in the past was only asked for a qualifying relative, not child.
Here is the screen in TurboTax (see bottom question):
Definitely an error with the TurboTax form. It should not be asking this "Was ThisChild's gross income $5,050.00 or more in 2024?" question when determining a "Qualifying Child".
See the IRS info:
https://www.irs.gov/credits-deductions/individuals/child-tax-credit
Use the Interactive Tax Assistant to see if you’re eligible to claim the CTC, ACTC or ODC:
I just went through it and no question was about exact income (nothing about $5050), and I got what I expected (my Child can be claimed as a ODC):
ThisChild is not a qualifying child for the Child Tax Credit.
ThisChild did not meet the age requirement. To qualify, ThisChild had to have been under age 17 at the end of 2024.
ThisChild qualifies for the Credit for Other Dependents.
So yes, I can get a $500 deduction. Now I have to:
Get TurboTax to fix this. -OR-
Just lie on the TT form as the actual tax form should come out right. -OR-
Decide that a $500 deduction will not help me that much, and for student grant considerations perhaps it is best to let him file and state that no one can claim him as a dependent.
It's from 2021 filing doc (likely an updated version exists), but it shows you that the income question we are seeing now in TT is for a "Qualifying Relative":
Publication 4012 (Rev. 10/2021)
For "Qualify Child" only these questions are asked by the IRS:
overview_of_the_rules_for_claiming_4012.pdf
