You should have received a $4,050 exemption for your dependent child by simply claiming them as a dependent.
To answer your question, here are some other items for you to consider:
- Do you qualify to file Head of Household, as opposed to filing single since you have a dependent child?
- Did you receive the Child Tax Credit? Each qualifying child you claim on your tax return can put up to $1,000 in your pocket.
- If you paid for a dependent's care so you could work or look for work, the Child and Dependent Care Credit (not to be confused with the similar-sounding Child Tax Credit) can also reduce your tax bill.
See the following information from TurboTax on Head of Household filing status, the Child Tax Credit, and the Child and Dependent Care Credit
Per TurboTax FAQ "Do I Qualify for Head of Household"
For tax year 2017 you can qualify for Head of Household if you:
- Were unmarried as of December 31, 2017 and
- Paid more than half the cost to run your (or a qualifying parent's) home in 2017 (rent, mortgage, utilities, etc.) and
- Supported a qualifying person.
If you were still legally married as of December 31 and a child lives with you, you can qualify for Head of Household under a slightly different set of rules. Read more
After you answer all the questions about yourself and your dependents at the beginning of your return, we'll let you know if your situation qualifies for Head of Household.
You can also revisit these questions by selecting My Info (online) or Personal Info (software), and then selecting Edit next to your name or your dependent's.
Per TurboTax FAQ "What is the Child Tax Credit":
If you have kids, you’re probably wondering if they qualify for the Child Tax Credit. It make sense: Each qualifying child you claim on your tax return can put up to $1,000 in your pocket.
This credit, not to be confused with the Child and Dependent Care Credit, is in addition to the $4,050 exemption you get for each dependent. However, not every child qualifies.
To qualify for the Child Tax Credit in 2017, your child must fill all of these requirements:
- Be born on or after January 1, 2001
- Be your son, daughter, stepchild, foster child, adopted child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild or niece/nephew)
- Have their own Social Security or Individual Tax Identification number (ITIN)
- Have lived with you for more than half the year
- Not pay more than half their own expenses
- Be a U.S. citizen, U.S. national, or U.S. resident alien (being a resident of Canada or Mexico does not qualify)
Just remember: Once your income reaches the amounts below, your credit starts being reduced down to zero. Here are the income limits:
- Married filing jointly: $110,000
- Married filing separately: $55,000
- Single, head of household: $75,000
When you reach the Deductions & Credits section in TurboTax, we’ll not only determine if your children are eligible for the Child Tax Credit, we’ll figure out the amount they qualify for.
Related Information:
Per the TurboTax FAQ "What is the Child and Dependent Care Credit?"
The Child and Dependent Care Credit (not to be confused with the similar-sounding Child Tax Credit) can reduce your tax bill if you paid for a dependent's care so that you could work or look for work.
To qualify for this credit, you must meet all of these criteria:
- You (and your spouse, if filing jointly) must have earned income
- The earned income requirement for one spouse is waived if s/he was a full-time student or
- Disabled, if they lived with the other spouse for more than 6 months in 2017
- You paid caregiving expenses so that you (and your spouse, if filing jointly) could work or look for work
- The work/look for work requirement for one spouse is waived if s/he was a full-time student or
- Disabled, if they lived with the other spouse for more than 6 months in 2017
- You paid a caregiver to care for a Qualifying Person. The caregiver cannot be:
- Your spouse;
- Your dependent;
- Your child if they were under 19 on the last day of 2017, even if not your dependent; or
- The parent of the Qualifying Person, if the Qualifying Person is your child under the age of 13 during 2017.
- You cannot file with the Married Filing Separately filing status
- You must furnish the care provider's name, address, and (unless it's a tax-exempt organization) their SSN, ITIN, or EIN on your return.
The credit is worth anywhere from 20% to 35% of your qualified expenses, up to $3,000 (for one qualifying person) and $6,000 (for two or more qualifying persons). Your percentage depends on your AGI, with the higher percentages applying to lower incomes and vice-versa.
TurboTax will figure out if you're eligible, do the math, and get you the maximum credit you qualify for.
