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Level 2
February 7, 2020
Question

Dependent DECREASES refund?!

  • February 7, 2020
  • 6 replies
  • 36 views

For some reason, when I include my dependent, my refund decreases from 1499 to a little over 500. Does this make sense to anyone?

6 replies

KathrynG3
Level 14
February 7, 2020

It is possible that some credits are interacting with each other. Often, there are different requirements for different credits. Also, credits have a portion that can reduce your tax to $0, but that is all. The other portion of the credit you could get even if you owed $0 in tax. When credits "overlap," so to speak, it could possibly reduce your refund.

 

Here is an article about rules for claiming a dependent on your tax return.

 

 

Level 15
February 7, 2020

Are you sure the number that is going down is not under the words "Tax due?"

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 2
February 7, 2020

No, the number going down is refund.

Level 2
March 18, 2020

@johnsnawder 

 

Did you ever figure out what happened? I'm experiencing the same exact problem. Without adding any dependents and filing single, my tax refund is $2,751. When I add my child dependent, it drops all the way down $812. That makes no sense, why would it drop? If anything, it should go up. Does anybody have any idea what's going on? I've never had this problem before. If adding a dependent is going to DECREASE my refund, I'd be better off just leaving them off my tax return. Which to me seems counter intuitive. 

Level 15
March 18, 2020

@nick-sgherzi - that seems very odd..... can you post a few numbers and let's see if we can understand it.

 

1) what is you adjusted gross income (AGI)? (look at line 8b of form 1040)

2) when you add the dependent, does your filing status change to Head of Household? 

3) what is the standard deduction before and after you add your child (look at line 9 of form 1040)

4) are you eligible for EIC? 

5) are you using the desktop version or the online version of TT? 

 

let's start there,