Dependent Child Credit

[ken-heidischu]

My son turned 20 years old in April 2022. He worked full time, so not a student, and lived at home for the entire year. He did not pay for any of his living expenses. When I answered "Yes" to the question in TurboTax if he earned more than $4,400, the $500 Child Tax Credit disappeared and considered him not a dependent.

I entered the same tax information into another reputable tax software program and was never asked if my son earned more than $4,400, he was considered as a dependent and gave me the $500 Child Tax Credit.

Why does TurboTax ask about my son's income and exclude the $500 Child Tax Credit for him even though he lived at home the entire year and did not pay any of his living expenses?

Thanks,

Ken

[DoninGA]

If he is age 19 or older, not a full time student and had gross income of $4,400 or more in 2022 then no one can claim him as a dependent under the Qualifying Relative rules.

To be a Qualifying Relative -

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer. A child is not the qualifying child of any other taxpayer if the child's parent (or any other person for whom the child is defined as a qualifying child) is not required to file an income tax return or files an income tax return only to get a refund on income tax withheld.
2. The person either (a) must be related to you or (b) must live with you all year as a member of your household.
3. The person's gross income for the year must be less than $4,400 (social security does not count) in 2022
4. You must provide more than half of the person's total support for the year.
5. The person must be a U.S. citizen or a U.S., Canada, or Mexico resident for some part of the year.
6. The person must not file a joint return with their spouse.

See the gross income test for a Qualifying Relative in IRS Publication 501 page 19 - https://www.irs.gov/pub/irs-pdf/p501.pdf#page=19

[MinhT1]

As your son is over 18, not a student, he cannot be your dependent if he has gross income of more than $4,400 in 2022. This is the law.

Please read this TurboTax Help article for more information.