1098-t

Forum|Forum|6 years ago
April 19, 2020
1 reply
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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

Alumni - Champ

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?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Carl

Level 11

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.

JohnW11Author

Level 2

Also why does it affect the 1098-t deduction?

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.