Hi - How can I set Turbotax to declare a dependent on a NYS state filing (the IT-201) but declare no - zero dependent on a Federal filing (the 1040)? Thanks.

[Bsch4477]

Some states don’t allow that but I don’t know about NY. If allowed, you would prepare and file your federal return with no dependent. . Then modify your federal return by adding the dependent and print and mail the NY return. Don’t save that modified return. 

[NCperson]

can you please explain why you want to do that? it may be easy if we understood the circumstances. 

[pleypley]

Thanks for those replies...  

The reason I would treat a dependent differently is for AOTC credits and NYS tuition deductions, where NYS and Fed differ on their requirements.  Apparently this is somewhat common; in fact, the instructions for the NYS form say:   "Example: You were entitled to claim your child as a dependent on your federal return but chose not to in order to allow them to claim a federal education credit on their federal tax return. You may still claim them as a dependent on your New York State return."

The struggle is how to do it right within Turbotax 2023 and hopefully efile the results.

[NCperson]

@pleypley - let's go back to the federal return and be sure your dependent is able to claim AOTC.

does your "dependent" meet ALL THREE of these conditions? if yes, then even if you don't claim them, they are not eligible for AOTC. 

1) they are under 24 and provide less than 50% of their own support AND

2) one of their parents are alive AND

3) they are filing other than MFJ.

it is possible for your dependent to claim the Lifetime Learning Credit if you don't claim them, but not AOTC.  Their income would have to be over $13,850 (2023) for the credit to have any value to the dependent. 

does this information change whether to claim your dependent?

1) how old are they? since you state they are your dependent, they are providing less then 50% of their own support.

2) are you the parent (so one of the parents are alive 😀)

3) are they married? 

[Bsch4477]

The conditions described apply to the refundable portion of the AOC but the student would receive the non refundable portion if not claimed as a dependent and otherwise qualified. On the student’s return it is important to report that the student CAN be claimed but is not being claimed. 

[NCperson]

@Bsch4477 thank you for the correction/ clarification.  

However, at that point the LLC could be a better outcome - depends on the dependent's income and how much QEE there is (net of scholarships).   

LLC is worth up to a $2,000 non-refundable tax credit ($10,000 of QEE times 20%). 

The non-refundable portion of AOTC is only worth a $1,500 tax credit (the first $2,000 of QEE, 60% of which is non-refundable = $1200 and the remaining $2,000 of QEE, 60% of which is non-refundable times 25% or $300).  

it's all a moot point if the dependent's income doesn't exceed $13,850 (2023).

[rjs]

@pleypley 

You should do what Bsch4477 said in the first reply above, but do it with the CD/Download TurboTax software, not TurboTax Online. With the CD/Download software you can prepare your federal tax return without the dependent and save it. Then use Save As to save a copy of the federal return with a different name. Add the dependent in the new copy, prepare the New York return in that copy, and save it. You now have two saved files, one for the federal return without the dependent and one for the state return with the dependent. You can e-file the federal return from the first file, and print and mail the New York return from the second file. (It's okay to file the New York return by mail.) Save PDFs of both files for possible future reference.

Doing it this way allows you to retain saved copies of both the federal and state returns that you actually filed.

In TurboTax Online you can save only one set of federal and state returns. The most recent returns would be saved automatically. There is no way to exit from TurboTax Online without saving.