Error TurboTax Deluxe 2023.Received letter from IRS about claiming my daughter as dependent. TT step-by-step says I can claim her. She turned 24 in 2023-not eligible.Help

[MJPerron]

TurboTax should fix this error and explain to clients steps needed to file amended return.  TurboTax also should be responsible for any fees associated with late payment given this relates to a TurboTax error.

[Hal_Al]

There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit (under 24 on December 31), student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit (if under 17). They are interrelated but the rules are different for each.

The support test is different for each type. The support test, for a QC, is only that the child didn't provide more than half his own support. The support test for a Qualifying Relative (QR) is that the taxpayer provided more than half the relative's support.

See full dependent rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Ret...

If you entered your daughter's birthday correctly, TurboTax (TT) will automatically disqualify her as a QC.  But then the interview will see if she qualifies as a QR.  You answered some thing wrong in the interview, most likely the income ($4700)  or support question. 

A person can still be a Qualifying relative dependent, if not a Qualifying Child, if he meets the 6 tests for claiming a dependent:

1. Closely Related OR live with the taxpayer ALL year
2. His/her gross taxable income for the year must be less than $4700 (2023) ($5050 for 2024).
3. The taxpayer must have provided more than 1/2 his support

In either case:

4. He must be a US citizen or resident of the US, Canada or Mexico
5. He must not file a joint return with his spouse or be claiming a dependent of his own
6. He must not be the qualifying child of another taxpayer

He must have a US social security number or tax identification number (TIN)

[Hal_Al]

Accuracy Guarantee https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-1...

But it only covers actual calculation errors in the program, not user error (and it’s almost always user error), and it only pays any penalties or interest resulting from that error, not the taxes. Either way, you are still responsible for the increase in tax.