@Hal_Al - my MAGI is over twice allowed for AOTC so again, not relevant for me and mine. Perhaps someone else can use that info so thanks for the reply.
But what about that big change to the IRS ITA? Did you try it? There was no question about exact income amount for Qualifying Child, only for Qualifying Relative. Now there is at the very end and it is not $5,050 but $5,200 that gets you a "not qualified" status. That is the number for 2025 not 2024 but IRS has apparently jumped the gun. Yes that is IRS, not TurboTax.
I will be speaking with both next week and try to get to the bottom of this and see if there is a change in interpretation or distinction between income allowed for Qualifying Child vs Qualifying Relative. They seems to merge this into a more uniform Qualifying Dependent type form.
Until now there has been two distinct types of dependents, each subject to different rules:
- a qualifying child
- a qualifying relative
Check this TurboTax link:
https://turbotax.intuit.com/tax-tips/family/rules-for-claiming-a-dependent-on-your-tax-return/L8LODb...
Not to bore you with the fuff, I will quote (emphasis mine) the relevant section of the FAQ:
Frequently asked questions about claiming dependents
How much can a dependent child earn?
A qualifying child can earn an unlimited amount of money and still be claimed as a dependent, so long as the child doesn't also provide more than half of their own support.
If the dependent child is being claimed under the qualifying relative rules, the child's gross income must be less than $5,050 for the year in 2024. This threshold increases to $5,200 for 2025.
