Additional Child Tax Credit Bug?

Forum|Forum|3 years ago
April 18, 2023
2 replies
20 views

I don't know if I found a bug in TurboTax but I am suspicious...

TT treats 1099-NEC and Schedule C income different from W-2 income when it comes to calculating the ACTC ($1500 per child). I get different numbers for all three.

But looking at the worksheet form 8812 TT calculates out "0" for the 1099-NEC and Schedule C, whereas for a the same number entered as a W-2 (and putting in 0 for withholdings, then deleting the 1099) yields a positive number for receiving a refundable credit back.

Isn't 1099's all considered earned income? My experiment shows TT treats them differently.

DogCatRabbitAuthor

Level 2

Will also add that EITC is blank, which is curious as well. Top line income was less than $28,000.

CatinaT1

Level 15

When you have income from a 1099-NEC, reported on a Schedule C, you pay Income tax AND Self-employment tax. Your Net Income (income minus expenses) is what is used to calculate the Child Tax Credit and EITC.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"