topic Does the program grant the new Other Dependent Tax credit without considering the Gross Income of the Dependent? in After you file

Does the program grant the new Other Dependent Tax credit without considering the Gross Income of the Dependent?

millhouse_64081 — Sat, 01 Jun 2019 07:40:14 GMT

Yes, provided that the Dependent qualifies. And unlike 2...

DanielV01 — Sat, 01 Jun 2019 07:40:15 GMT

Yes, provided that the Dependent qualifies. And unlike 2017, when the dependent could only claim the deduction, but not the exemption (a deduction of $6350), in 2018 the dependent may still claim up to the full $12000 deduction where earned income is involved (unearned income, such as taxable scholarship, falls under the same arrangement as last year but has even higher tax rates).

Why does the program not ask for Gross Income? It has ap...

millhouse_64081 — Sat, 01 Jun 2019 07:40:16 GMT

Why does the program not ask for Gross Income? It has applied the credit incorrectly because the dependent qualifies for every criteria except they exceeded the gross income threshold of $4,150 and as a result, I should not be receiving the credit.

That also depends. He does not have to have less than $4...

DanielV01 — Sat, 01 Jun 2019 07:40:17 GMT

That also depends. He does not have to have less than $4150 if he is your qualifying child. If on December 31 he was under 19, or a student under 23, he is your qualifying child if he did not provide at least half of his own support. He could have made more than $4150 in this test, and you would still get the $500 Other Dependent Credit. Otherwise you wouldn't be able to claim him at all.

Thanks for the information. Very helpful. I didn't real...

millhouse_64081 — Sat, 01 Jun 2019 07:40:19 GMT

Thanks for the information. Very helpful. I didn't realize there were two separate tests.