topic Re: Why does my federal refund amount decrease after I add my dependent's social security number?. in Retirement tax questions

Why does my federal refund amount decrease after I add my dependent's social security number?.

ana_b07107 — Fri, 29 Jan 2021 01:52:03 GMT

Re: Why does my federal refund amount decrease after I add my dependent's social security number?.

SweetieJean — Fri, 29 Jan 2021 02:08:53 GMT

Are you sure it's not the TAXES DUE that are going down?

Re: Why does my federal refund amount decrease after I add my dependent's social security number?.

SweetieJean — Fri, 29 Jan 2021 02:11:20 GMT

or are you really adding your dependent's Social Security income (SSA-1099)? I ask because you are posting in the Retirement section.

Re: Why does my federal refund amount decrease after I add my dependent's social security number?.

ana_b07107 — Fri, 29 Jan 2021 02:57:01 GMT

No. It's not taxes due. It's asking me to add my dependent. I add my son. After I add his SSN, my federal refund due decreases significantly.

Re: Why does my federal refund amount decrease after I add my dependent's social security number?.

dholl662 — Mon, 01 Feb 2021 03:16:57 GMT

@ana_b07107 Mine is doing this also(adding parent as dependent) did you figure it out?

Re: Why does my federal refund amount decrease after I add my dependent's social security number?.

JamesG1 — Tue, 02 Feb 2021 17:09:56 GMT

My guess as to why this fluctuation may be happening is that the software presumes that the new dependent will be a qualifying child and then corrects when the dependent becomes a qualifying relative?

The tests for a qualifying child are:

Relationship: Must be your child, adopted child, foster child, brother or sister, or a descendant of one of these (grand or nephew).
Residence: Must have the same residence for more than half the year.
Age: Must be under age 19 or under 24 and a full-time student for at least 5 months. They can be any age if they are totally and permanently disabled.
Support: Must not have provided more than half of their own support during the year.
Joint Support: The child cannot file a joint return for the year.

The tests for a qualifying relative are:

Qualifying Child: They are not the “qualifying child” of another taxpayer or your “qualifying child.”
Gross Income: The dependent being claimed earns less than $4,300 in 2020.
Total Support: You provide more than half of the total support for the year.
Member of Household or Relationship: The person (a friend, girlfriend, non-blood relative) must live with you all year as a member of your household or be related to you.

See this TurboTax Help.