Why won't Turbotax allow me to answer "Yes" that my child paid more than half their expenses?

[dporter22]

My child paid more than half his expenses which should disqualify him from being my dependent, but Turbotax won't recognize this answer and categorizes him as a dependent even though he shouldn't be.

[Cynthiad66]

Sounds like there is conflicting information in the "My Info" section of the software.  Also, why are you showing this person on the return as a dependent?  Is it just to claim HOH status without claiming as a dependent?  If so, go back into the "My Info" or personal information section, depending on the software and review the questions about the person you are claiming on your return.  

What is qualifying child for head of household?

The child must have lived within your home for more than six months during the tax year. The child needs to be younger than you. As of the end of the tax year, the child must be under 19 if he is not a student, or under 24 if he is a full-time college student.

Revisit and answer the questions about this child carefully.  Either the child is a dependent or a Qualifying child for the HOH status.

[dporter22]

I've reviewed the information and answered all the questions several times but no matter what it won't let me indicate that the child paid more than half their expenses. 

Since the child paid more than half their expenses they shouldn't be considered a dependent, but Turbotax won't accept my answer and classifies them as a dependent anyway.

I could delete the child and not claim them, but I want to make sure that the child cannot be "claimed by someone else" on his tax form, and Turbotax is telling me he can be.

[DawnC]

It won't allow a YES answer there.  Your options are NO (keep your dependent listed on your return) or remove the dependent.  See the worksheet here.   There are a lot of costs that make up support.    If you don't qualify to claim him, remove him and he will answer NO to the 'can someone claim me' question.   You don't have to pay half in order to claim him, but he can't have provided more than half from his own funds.   If he does not pay over half of his own support, and you are otherwise qualified to claim him, he can't answer NO to the question about being claimed on another tax return, no matter what you put on yours.  

If you can claim him but choose not to, he still has to answer yes to the 'can someone claim else me' question.    The next question (will someone claim me?), he can say NO to.   But he is not going to qualify for an education tax credit if he only has $7700 of earned income as he will have no tax due.   If his income was higher or he also has scholarship income, he could possibly qualify for a credit.  A full-time unmarried student, under age 24, whether a dependent or not,  is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans, or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants. 

The question that you are asked during the dependent interview is not the same question that he gets asked after saying that he is a dependent.     Please See Opus' explanation about the AOTC credit and support and the post right under that one.  

[dporter22]

Thanks, but that doesn't really answer my question.

If a child paid more than half their expenses they aren't a dependent, but Turbotax won't let me select that answer and keeps classifying them as a dependent even though they shouldn't be.

[DaveF1006]

I am not sure why the program doesn't allow you to make this entry. If you don't wish to claim them, delete them as a dependent in MY INFO section of your return

[dporter22]

Unfortunately just deleting them doesn't solve the issue.  The issue is whether they can be claimed as a dependent, and whether you delete them or not the student still has to answer "Can someone claim you".

Turbotax does not allow you to indicate that they paid more than half their expenses, and therefore incorrectly (apparently) classifies them as dependents.

Before my student answers the question on his form, I need to find out if Turbotax is wrong or right.

The IRS says he is not a dependent if he paid more than half his expenses, Turbotax says he is.

[JohnB5677]

Here are the rules for a Qualifying child.  It sounds like he qualifies except for Do you financially support him? 

If he does not qualify as a dependent on your return, you will not have to include him on it.  He will then be able to answer NO, to the "Can someone else claim you as a dependent" and claim himself.

• Are they a citizen or resident? The person must be a U.S. citizen, a U.S. national, U.S. resident, or a resident of Canada or Mexico. Many people wonder if they can claim a foreign-exchange student who temporarily lives with them. The answer is maybe, but only if they meet this requirement.
• Are you the only person claiming them as a dependent? You can’t claim someone who takes a personal exemption for himself or claims another dependent on his own tax form.
• Are they filing a joint return? You cannot claim someone who is married and files a joint tax return. Say you support your married teenaged son: If he files a joint return with his spouse, you can’t claim him as a dependent.
• Are they related to you? The child can be your son, daughter, stepchild, eligible foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, adopted child or an offspring of any of them.
• Do they meet the age requirement? Your child must be under age 19 or, if a full-time student, under age 24. There is no age limit if your child is permanently and totally disabled.
• Do they live with you? Your child must live with you for more than half the year, but several exceptions apply.
• Do you financially support them? Your child may have a job, but that job cannot provide more than half of her support.
• Are you the only person claiming them? This requirement commonly applies to children of divorced parents. Here you must use the “tie breaker rules,” which are found in IRS Publication 501. These rules establish income, parentage and residency requirements for claiming a child.

[dporter22]

Yes, it comes down to the support question and Turbotax will not allow me to answer "Yes".

As a customer I'm paying for Turbotax to know the IRS rules, to accurately complete my forms, and to have fully functional software.  In this case there is a discrepancy and just deleting the dependent is not the solution.

[DoninGA]

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@dporter22 wrote:

Yes, it comes down to the support question and Turbotax will not allow me to answer "Yes".

As a customer I'm paying for Turbotax to know the IRS rules, to accurately complete my forms, and to have fully functional software.  In this case there is a discrepancy and just deleting the dependent is not the solution.

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I just used my Deluxe online test return which has a dependent entered.  When asked if the dependent provided over one-half of his support I selected Yes.  He was removed as being a dependent.

If you cannot enter Yes for them providing over one-half of their support, then you have a few options.

1.  Delete the dependent and re-enter

2.  If that does not correct the error then clear cache and cookies on your web browser - https://ttlc.intuit.com/community/troubleshooting/help/how-to-clear-your-cache/01/26135

3.  If that does not work try changing web browser to one of these you are not using - Google Chrome, Mozilla Firefox, Windows Edge

4.  If that does not work clear your return and start over 

If you have not paid for the online edition you are using, have not filed your tax return or registered the Free edition, then you can clear your return and start over with a lower priced edition. Click on Tax Tools on the left side of the program screen while working on the 2020 online tax return. Click on Clear & Start Over.

[dporter22]

Thanks, but I had already tried those options several times and they didn't work, and I'm not starting the entire return all over again.  

Turbotax has an algorithm or software problem for this question.

[DoninGA]

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@dporter22 wrote:

Thanks, but I had already tried those options several times and they didn't work, and I'm not starting the entire return all over again.  

Turbotax has an algorithm or software problem for this question.

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If the problem was systemic we would have hundreds of complaints on this forum for this issue.  Yours is the only one I have seen since the 2020 online editions became available on December 4, 2020.

Contact TurboTax support for assistance 

Use this website to contact TurboTax support during business hours - https://support.turbotax.intuit.com/contact/

Or -

Support can also be reached by messaging them on these pages https://www.facebook.com/turbotax/ and https://twitter.com/TeamTurboTax

Or -

Use this phone number and select TurboTax - 1-800-4-INTUIT (1-800-446-8848)

[dporter22]

Spent over 2 hours on the phone with customer service who did nothing.  Finally transferred me to tech support  and all they did was say someone would call me back.  No one ever did.

Very poor.

[pickleyo]

Well, add me to the list because I am having the same problem, and, not realizing it was a software issue, my daughter lost out on a lot of money last year because TurboTax insisted that she could be claimed by someone else when she could not.  Not happy either.  I am currently having the same issue again in 2022, but this time I won't be taking TurboTax's word for it that I'm wrong.  There truly is some kind of glitch in the software.  I don't know if it is because they are assuming based on her age and income that she didn't provide more than half of her support (which she did) or if it is something else, but it needs to be dealt with.

[AliciaP1]

It would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@pickleyo