other dependent

[owlsnest57]

I am single and claiming an adult who is single and collects social security (SS) because disable via doctors diagnoses. No federal withholding in SS, he made less than 1544 in other income with federal withholding. He is not a relative but lived all year in my home. I paid more than 1/2 of living expenses. Problem finding this dependent option in Turbo Tax, had to pick as if a relative. Problem once I enter his info, turbo tax says " Ernie Qualified You for a tax Break" BUT my federal return amount drops over two hundred dollars. Is Turbo Tax acting correctly? Something seems wrong!

[DoninGA]

When claiming a non-relative as a dependent you are eligible for the Other Dependent credit of $500.

[owlsnest57]

BUT why does my return amount drop two hundred dollars when I enter in his information???

[DoninGA]

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@owlsnest57 wrote:

BUT why does my return amount drop two hundred dollars when I enter in his information???

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The Taxes Due amount would drop.  Not the Tax Refund.  Look at the description on the meter.

[owlsnest57]

I am looking at the top of the screen page The Tab reads "Federal Refund". This is where I see the drop of two hundred dollars. I assume this is the same as your comment "Not the Tax refund".

Does TT need an update?

[DoninGA]

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@owlsnest57 wrote:

I am looking at the top of the screen page The Tab reads "Federal Refund". This is where I see the drop of two hundred dollars. I assume this is the same as your comment "Not the Tax refund".

Does TT need an update?

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The meter at the top of the screen will not be correct until you have completed your federal tax return, entered all income and deductions and have gone through Federal Review without errors. 

[owlsnest57]

After it dropped two hundred dollars when I put in Ernies info. The number did not change.

I have entered all my info and did the federal review. Did not increase after the drop. I do not Owe any taxes.

[ColeenD3]

Take Ernie off as a dependent and look at your return. Note how income, credits (or lack thereof) and withholding are related. Then add Ernie back as your relative. See the difference between the two returns. This is the only way to know what is actually happening.

Adding a dependent does not lower your refund by itself. Do you have insurance through the Marketplace? If so, is adding a dependent affecting those numbers?

[Hal_Al]

 Don't go by that "refund meter" at the top of the page. Sometimes it's not accurate until additional info is entered. Wait til you get to the end, to see if you agree with the final result. Then all your info will have been input to analyze the result. 

The Other dependent credit will show on line 19 of form 1040. It may be less than the full $500, if your tax (line 18) is less than $500.