Military BAH and BAS allowances - amount entered but tax did not reduce

[poco702001]

When I entered my military BAH and BAS allowances under the nontaxable income section within the Sales Tax deduction portion of TT, my tax did not decrease like I thought it had in prior years. I would see the number move.

I would expect, that since BAH/BAS is not taxed, the amount of tax owed would decrease. In addition, Schedule 8812 (Child Care) form was created after entering BAH. This has not occurred in the past. I noticed during the error check as I was prompted to enter money received for child care. I've been using TT since 199 an have never seen this form before.

Does it have anything to do with income limits, if not any other explanation?

[DMarkM1 · Accepted solution]

If your itemized deductions entered have not exceeded your standard deduction yet then the sales tax deduction has not affected your tax liability.  

The form 8812 deals with the child tax credit (CTC).  The CTC question is being asked to every taxpayer this year as part of the new child tax credit protocols.  You will need to revisit the "Child tax credit" topic and answer no you did not receive any advanced CTC payments which should turn off the form 8812.

1. "Deductions & Credits" Tab
2. Scroll down to "You and Your Family"
3. "Show More"
4. "Revisit" "Advanced payments, child tax credit..." 

If the error persists after answering "No" then you can also delete the form 8812.

1. "Tax Tools" in the left hand menu
2. "Tools"
3. "Delete a form" in the main screen
4. Find the form 8812
5. "Delete"
6. "Confirm Deletion"