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Solved

Regarding claiming my son as a dependent.

Forum|Forum|2 years ago
February 23, 2024
3 replies
0 views

Hello There, We are filing jointly with an income of > 150K. I would like to know if I will get any tax credit if I claim my son who is a full-time student as a dependent.

1) He is a full time student and supported him for the whole year

2) He lived with me for the whole year.

3) He met the criteria to be claimed as a dependent

4) He is 22 years of age

When I entered the details for him, I did not see any reduction in the tax that I owe so wondering what kind of deductions or credits I am eligible for. I am asking this question to find out if I am making any mistakes in filing.

I was expecting some tax credit hence the question. Please let me know if any additional details are needed

Best answer by DawnC

Also line 18 > $500

If Line 18 is over $500 and there is nothing on Line 19, your dependent is not qualifying for the credit or your income is too high. Review your entry, try deleting your dependent and re-adding them. Also, what is on Line 11? That is your AGI. The credit is $500 per qualifying dependent as long as the adjusted gross income (AGI) doesn’t exceed $200,000 ($400,000 if filing jointly). The credit goes down $50 for every $1,000 that the AGI exceeds the $200,000/$400,000 limit.

Verify your dependent meets the requirement here.

xmasbaby0

Employee

If your child is older than 16 you get the $500 credit for other dependents--it is on line 19 of your Form 1040. It is non-refundable---it reduces tax you owe. And if he is a full-time student claimed as your dependent , you can enter the education credit on your own tax return.

https://ttlc.intuit.com/questions/1901172-what-are-education-tax-credits

https://ttlc.intuit.com/questions/3262983-who-is-eligible-to-take-the-american-opportunity-tax-credit

AOC will be shown on line 29 of your Form 1040

https://ttlc.intuit.com/questions/3383321-why-didn-t-i-get-a-credit-or-deduction-for-education-expenses

https://ttlc.intuit.com/questions/1901526-what-s-the-income-limit-for-the-american-opportunity-and-lifetime-learning-credits

https://ttlc.intuit.com/community/credits-and-deductions/help/what-expenses-qualify-for-the-lifetime-learning-credit/00/26844

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Vanessa A

Based on the information you provided regarding your son, he would qualify as a Qualifying Relative which allows you to claim the $500 Non-Refundable Other Dependent Credit.

If you are not seeing any change in your refund, this is likely because you have no tax liability on line 24 of your 1040 already. Since the Other Dependent Credit is a nonrefundable credits, this will only lower your tax liability to $0. It will not result in additional refunds of money you did not pay in.

You can look at the first page of your 1040 where it says Dependent to see if there is a check mark in the box for Credit for Other Deps. If it does, that means you did everything right.

On the menu bar on the left that shows.

Select Tax Tools
On the drop-down select Tools
On the pop-up menu
Select View Tax Summary
On the left sidebar, select Preview my 1040

If you are using Desktop version, you can just switch to forms mode to see your 1040.

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Ravi AmmamuthuAuthor

Hi There, Thank you so much. I do see that my son has been selected for the Credit for other depts. I do see the line 24 that has the taxes and in fact i do owe the tax back. So wondering why my tax due did not go down. Any help is appreciated

Regards,

Ravi

Vanessa A

You probably didn't see any change in your tax due because you entered your son on your return prior to entering your income. So once you entered any income, the $500 Other Dependent Credit was already a part of the calculation of what you owed. Therefore, you would not see a change. If you entered your son after you entered your income, then you would see a change.

If you would go back and delete your son, you would see the tax due go up by $500.

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Vanessa A

Is line 23 equal to line 24?

What is on line 16? If line 16 is $0, then your are not getting the credit for your son because you did not have a tax liability for the Other Dependent credit to reduce. When you have a nonrefundable credits, if you do not have taxes to reduce you cannot get the credit.

Your SE tax which is 15.3% of your income is your Medicare and Social Security tax that you pay as an independent contractor or sole proprietor is not able to be reduced by credits as these payments go to SSA and Medicare instead of in the lump sum pot with the rest of your taxes. If you were an employee, then your SS and Medicare taxes would be half of the 15.3% because your employer would be paying the other half, but since you don't have an employer to pay the other half, you have to pay the entire amount.

You do get a 50% credit for paying this, but the amount on line 23 cannot be reduced by credits for your dependents.

Self Employment Taxes

The Self Employment Tax

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Ravi AmmamuthuAuthor

Thank you. Line 23 and 24 are not equal. Line 16 is not 0 as well. I am employed and not a contractor. 50% of the tax that I pay for medicare and social sec should not be considered as self employment tax which will stop the credit for me. However, I do have INT and DIV close to $550. Is that considered as self-employment investment and can that cause this ?

DawnC

Employee

No, interest and dividends are not self-employment income, so that is not the problem. No amount on Line 23 can be reduced by child tax credits. The amount on Line 23 comes from Schedule 2 - those taxes can't be reduced by the child credit.

What is on Line 18? Is it more than $500?

What is on Line 19? I believe you said 0, but I want to confirm.

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