where did the $5050 question come from when adding your dependents? I have never had this question before and why does it matter? I have a dependent that makes more?

There are two kinds of dependents----qualifying child and qualifying relative.   For a qualifying relative, they cannot make more than $5050 -- not including Social Security.

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2024 tax return as long as they meet the following requirements:

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
• No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $5050 in 2024.
• You provided more than half of their financial support.

If you are entering a child as a dependent on your tax return and the child is under the age of 17, then you must have answered one of the questions concerning the dependent incorrectly if you are being asked about their gross income for the year.

Go back through and check your answers.  You should have indicated the dependent is your child, that they lived in your home for the whole year.  That they did NOT provide for over one-half of their own support.  That there was not another person in the home supporting them.  That there date of birth shows they are under the age of 17.  And that you did NOT check the box labeled "not valid for employment" when entering their Social Security number.

If the answers were all correct for the child then delete the child as a dependent and re-enter.

It is asking me if my daughters made more than $5050??  I think there is a bug in the SW.  If I answer no, will it do the rest correctly or will is it somehow thinking my daughters are relatives, even though it clearly states I answered child??

After confirming multiple times and still getting the $5050 question, I then completely deleted them and reentered everything and I am still getting asked if the made over $5050.  HELP!

They meet all the requirements:

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2024 tax return as long as they meet the following requirements:

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
• No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

In the online product, after answering that my 22 year old child earned more than $5050, "Was a full-time student in 2024" showed up in the series of check boxes on the next screen, labelled "Less common situations for <blank>".

I guess having a 24-and-under child that's full time student that makes 5k is as uncommon as them getting married or dying.  I suspect the $5050 question starts being asked after they turn 22, b/c I wasn't asked it last year.