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Should I be getting an exemption of $4050 for filing a dependent? I don't seem to be getting that in my refund.

Forum|Forum|7 years ago
June 5, 2019
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Best answer by Hal_Al

There is no fixed amount per child. Your refundable credits are calculated based on the amount of your earned income. It consists of two parts: The Earned income Credit (EIC) is looked up in this table https://apps.irs.gov/app/vita/content/globalmedia/earned_income_credit_table_1040i.pdf. The "Additional" Child Tax Credit is calculated on form 8812, but is basically 15% of your earned income over $3000, up to $1000. https://www.irs.gov/pub/irs-pdf/f1040s8.pdf The $4050 figure you may have heard about is the exemption deduction. It is not a credit or a refund, but a deduction from income before tax is calculated; $4050 for each person claimed on your return.

Dependent, other than children, still qualify you for the exemption deduction, but not for any refundable credits.

Hal_AlAnswer

Employee

There is no fixed amount per child. Your refundable credits are calculated based on the amount of your earned income. It consists of two parts: The Earned income Credit (EIC) is looked up in this table https://apps.irs.gov/app/vita/content/globalmedia/earned_income_credit_table_1040i.pdf. The "Additional" Child Tax Credit is calculated on form 8812, but is basically 15% of your earned income over $3000, up to $1000. https://www.irs.gov/pub/irs-pdf/f1040s8.pdf The $4050 figure you may have heard about is the exemption deduction. It is not a credit or a refund, but a deduction from income before tax is calculated; $4050 for each person claimed on your return.

Dependent, other than children, still qualify you for the exemption deduction, but not for any refundable credits.

M

mattstankeyAuthor

That was my understanding as well. I still owe a lot in taxes after adding a dependent, so I thought that the exemption would lower the amount due by up to $4050 (not including any refund). That doesn't seem to be the case for me.