1098-t

[JohnW11]

My return was just rejected because turbotax states that the child earned credit was wrong and I needed to uncheck one of my dependents who is 18 and in college.  The software seems to have done this automatically and as a result my sons 1098-t info now states he is not eligible for the credit.  Why he is only in his second year.  Turbo tax says he is not eligible although he was in the first year and this credit is for four years.  What gives?

[macuser_22]

Exactly what dies the reject say?

There is no such thing as"child earned credit".   There is Child tax Credit,  and Earned Income Credit.

What does it actually say and what is the reject code?

[Carl]

The two credits, child tax credit and earned income credit have age limits. I can't recall which is which. But for one of the credits the child must have been under the age of 13 on Dec 31 of the tax year, and for the other credit under the age of 17. I doubt your collage student qualifies you for either credit.

[JohnW11]

This is the error I get.

IND-116-01 - Each dependent in 'DependentDetail' on the return with 'EligibleForChildTaxCreditInd' checked must be under the age of 17. You may be eligible to claim the "Credit for other dependents" if you meet the requirements for the credit

[macuser_22]

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@Carl wrote:

The two credits, child tax credit and earned income credit have age limits. I can't recall which is which. But for one of the credits the child must have been under the age of 13 on Dec 31 of the tax year, and for the other credit under the age of 17. I doubt your collage student qualifies you for either credit.

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Under age 13 is Dependent Care Credit.   EIC is the same as a Qualifying Child dependent (Under 19 or under 24 if a full-time student).    Child tax Credit is under 17.

[JohnW11]

Where in turbo tax do I uncheck him for this.  I believe it states that if the child is claimed as a dependent the allocated max is $500 for over 17.

[JohnW11]

Also why does it affect the 1098-t deduction?

[macuser_22]

What do you mean "uncheck him"?   What are you trying to do?

[JohnW11]

What are the Child and Other Dependent Tax Credits?

These credits include of the Child Tax Credit and the Credit for Other Dependents. If you have a child or someone you support almost entirely, there's a good chance you're eligible for one of these tax breaks.

The Child Tax Credit is a tax break that can benefit people with children under the age of 17. You can get up to $2,000 for each child you claim. That's money in your pocket.

The Other Dependent Tax Credit is a new $500 tax break for people with dependents who are 17 or older, not necessarily related to them, or have an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number. Same deal here - you'll get $500 for each dependent you claim.

This is what Turbo tax states:

One thing to note about the Child Tax Credit - it can come with something called a "refundable credit" depending on your income and how many children you claim.

Here's an example of how refundable credits work:
Jane owes $1,675 in taxes and received a Child Tax Credit of $2,000. The tax she owed was reduced to zero, and the remaining $325 was converted to another credit called the Additional Child Tax Credit, which was refunded to her. If Jane didn't qualify for the Additional Child Tax Credit, the remaining $325 would have been lost.

We'll automatically figure out if you qualify for the Additional Child Tax Credit, and then figure out how much you're getting back.

TurboTax states he is eligible.

[JohnW11]

This is the error I get.

IND-116-01 - Each dependent in 'DependentDetail' on the return with 'EligibleForChildTaxCreditInd' checked must be under the age of 17. You may be eligible to claim the "Credit for other dependents" if you meet the requirements for the credit

No opens for unchecking anyone.  TurboTax check

[macuser_22]

What year was your child born?

Go to the personal information section, dependents, and go through the interview to see the year you entered for DOB.  TurboTax should only  give you that credit if the year of birth was 2003 or later. If you entered it incorrectly and the child is older than 16, then you can correct it and TurboTax will remove the credit and you should be able to e-file.

If the actual DOB *is* 2003 or later and you get that reject then it means that there is an error in the IRS database that comes from the Social Security Administration's data base that might have the wrong DOB and the IRS thinks the child is older than 16.

To correct it you need  to contact the SSA.    This year, you can only print and mail file since any correction will not get to the IRS in time to e-file this year.

[JohnW11]

Went over it four times and the info is correct he is over 17.  He is a college student who qualifies for Earned income credit- College 1098-t.

The info is added correctly but it seems turbotax had him as eligible for other dependant tax credit.   $500 credit which is new.  IRS is picking him up as under the child credit which it should not given the box that states he should not qualitfy is checked.   Had spoken to two turbotax folks and they state the info is added correctly.  Not sure why IRS is rejecting his info as the same was applied last year.

[macuser_22]

Print all forms and worksheets if you are using the online version or switch to the forms mode if using desktop version.

Look at the "Child tax credit" worksheet lines 1 & 2.    If the $500 is on line 1 then you mist have made a data entry error somewhere. Line 1 would only have a value of child was under age 17.  I would suggest deleting the dependent and re-enter.

If the $500 is on line 2, as it should be for dependents over age 16 , then this is an IRS error.