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DogCatRabbit
Returning Member

Additional Child Tax Credit Bug?

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.

 

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2 Replies
DogCatRabbit
Returning Member

Additional Child Tax Credit Bug?

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

CatinaT1
Expert Alumni

Additional Child Tax Credit Bug?

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.

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