- Asked by crazgrl6680
- TurboTax Basic
That is really confusing of the Turbotax program to make such a big deal out of the personal exemption amounts for dependants. Unfortunately that is not what a deduction means.
You get a reduction in the amount of your income that is taxed. So if your income was $61,700 and you had 3 exemptions then your taxable income would be $50,000. Actually-you get the same deduction for yourself so that brings it down another $3,900.
You may be eligible for a child tax credit which is a different type of entry. A credit actually reduces your tax liability. But that credit is not refundable-meaning if you don't own any tax you don't get that credit. But Wait ! There is more! (sorry-had to say that) There is a refundable additional child tax credit if you have earned income that can give you a extra amount beyond the taxes you paid in.
It is complicated-let the program figure those numbers for you.https://www.1040.com/federal-taxes/credits/additional-child-tax-credit/
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