I support a parent all year but do not qualify for $10,000 arizona tax credit. why not?

[tempemike1081]

I am only getting $500 credit. I qualify for $10,000. Turbotax is not assisting me properly

[DavidD66]

I am not aware of a $10,000 credit offered by Arizona.  There previously was a $10,000 "exemption" income exemption for Qualifying Parents and Ancestors of Your Parents.  Arizona replaced exceptions with tax credits for tax years after 2018.  According to the Arizona Department of Revenue:

"As with federal income tax returns, the state of Arizona offers various credits to taxpayers. One credit taxpayers inquire frequently on is the dependent tax credit. Prior to the 2019 return, Arizona allowed taxpayer's to claim an exemption for each dependent. Beginning with the 2019 tax return, the dependent deduction was replaced with a dependent credit. The credit is $100 for each dependent under 17 years of age and $25 each for all other dependents. The credit is subject to a phase out for higher income taxpayers."

[tempemike1081]

I have located the specifics to a "qualifying parent or grandparent" tax benefit. In AZ140 box 11a I have one dependent parent to claim, and have met all requirements. This number (1) is then carried to Line 41, where I get a $10,000 income subtraction adjustment to line 42, AZ Adjusted Gross income. How can I confirm I properly received this deduction in my Turbotax return?

[JamesG1]

You can review the state tax return in TurboTax Online by following these directions. 

• Down the left side of the screen, click on Tax Tools.
• Click on Tools.
• Under Other helpful links, click on View Tax Summary.
• Down the left side of the screen, click on State Tax Summary to see the actual tax return that you prepared.
• Down the left side of the screen, click on Preview My 1040 to see the actual tax return that you prepared.
• Down the left side of the screen, click Back to return.

You can print or view your full tax return prior to filing after you have paid for the software.

[tempemike1081]

This is better, but it appears that at line 13a of Federal 1040 I am only getting a $500 dependent credit. A $10,000 income subtraction for my 22% bracket is worth $2200 right? I would be better off not taking a dependent deduction. Why doesn't TT figure this out?

[AmyC]

On the federal return, a $500 credit is better than no credit. The federal does not have a $10,000 exemption.You get $500 (plus medical expenses, if you itemize).

On the state, subtracting $10,000 from your income is clearly worth the credit.