It is a new exemption, effective 01/01/2023. Beginning in 2023, a taxpayer is permitted an exemption of $3,000 for a child who qualifies for the first time for the extra exemption for certain qualifying children. This $3,000 is the exemption instead of the $1,500 exemption available. For a child to qualify for the exemption, the child must meet the qualifications for the $1,500 exemption (see bulletin 117 attached below). The tax return you are filing now is for Tax Year 2023 (01/01/23-12/31/23)
In addition, the child must be eligible for the exemption for any taxpayer for the first time. A child is not eligible for the $3,000 if any of the following are true:
• The taxpayer previously claimed a $1,500 exemption for the child.
• The taxpayer was eligible to claim the child but did not file a return for any reason, including:
- Not having enough income to file a return, o Being a nonresident without Indiana source income, or
- Failing to file a return in a timely manner.
• The child was claimed previously or could have been claimed previously as a qualifying child by another taxpayer
Special Rule for First-Year Qualifying Children Bulletin 117 TurboTax will apply the exemption if you qualify. Enter all dependent information in the Federal section, and TurboTax will transfer that data to your state return(s).
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