topic Why don't I qualify for the Dependent Tax Credits in Deductions & credits

Why don't I qualify for the Dependent Tax Credits

sdj0920 — Sat, 08 Feb 2020 21:59:07 GMT

I am the head of household and my parents are my dependents. When doing my taxes this year it keeps saying they qualify as my dependents but I don't qualify for the dependent tax credits. This is the message I am receiving: We see you have qualifying children or other dependents, but based on your income and other tax info, you don't qualify for this credit.

What other tax info would disqualify me from this credit? I know I am nowhere near the threshold of income and my parents don't even work. Just need a little more clarification on this. Thanks!

Re: Why don't I qualify for the Dependent Tax Credits

JotikaT2 — Sat, 08 Feb 2020 22:20:33 GMT

It depends.

You need to meet all of the requirements in order to take advantage of the Family Tax credit.

Allowed for children age 17 and older, adult dependents, and dependents with ITIN
Must meet requirements of qualifying child or relative
AGI limit $200,000 or $400,000 if MFJ

Qualifying child or relative requirements

Additional reasons why you cannot claim the credit include the following:

The dependent provided over half of their own support
The dependent did not live with you for the entire year
The dependent had over $4,200 in gross income

Reasons for not getting Credit for other dependents

Re: Why don't I qualify for the Dependent Tax Credits

NCperson — Sat, 08 Feb 2020 22:49:48 GMT

try this IRS tool - it will explain whether or not you qualify (in essence, TT is taking you though the same questions)

https://www.irs.gov/newsroom/interactive-tool-on-irsgov-helps-taxpayers-get-answers-to-their-tax-questions

Re: Why don't I qualify for the Dependent Tax Credits

sdj0920 — Sat, 08 Feb 2020 22:38:34 GMT

Thanks for quick reply. So I checked those qualifications already and my parents should qualify. I am nowhere near the AGI, my parents both have Social Security numbers, they don't work so their income is not more than $4,200, they did not provide more than have of their financial support, and they live with me the whole year. That being said I am still confused as to why I don't qualify. Am I missing something here?

Re: Why don't I qualify for the Dependent Tax Credits

NCperson — Sat, 08 Feb 2020 22:46:17 GMT

go through the IRS tool.... and if it says you qualify for the credit and TT is not providing it, likely you have keyed something in incorrectly,

Re: Why don't I qualify for the Dependent Tax Credits

sdj0920 — Sat, 08 Feb 2020 23:06:41 GMT

I already did the tool and it is saying they qualified for the dependent tax credit. I have already entered in their information twice but TT still says I have qualifying dependents but I dont qualify for the credit.

Re: Why don't I qualify for the Dependent Tax Credits

NCperson — Sun, 09 Feb 2020 03:03:52 GMT

if your income is low and you don't otherwise owe taxes, then the credit isn't worth anything. In otherwords, you can have zero taxes and expect the IRS to send you a $1,000 check for the two dependents.

1) how much tax was withheld on your pay checks, etc and what is your refund? if those two numbers are the same, you don't owe any tax and therefore don't get the benefit of the "other dependent credit".

is that the issue?

one other thing to consider.... do you have children that causes you to be Head of Household? the reason I ask is I do not think you could be HOH if it's your parents that are your only dependents. So TT wouldn't say you were HOH and then turn around and say your parents can't be your dependents - it's illogical. What is more logical is they are your dependents but your tax situation eliminates the $500 credits.