You are right, I got sidetracked.  Sorry about the confusion. Then that makes it solid - the student can't claim the refundable portion of the credit because you said her loans and scholarships are in excess of half of her support (therefore she will not provide over half of her support with earned income).

The way I read §152(f)(5), she won't qualify for the refundable portion in 2024 either because her loans and scholarships provide over half of her support.  But as I said, I've seen a professional article that interprets it very differently than how I read it.

I assume you are asking about the "refundable" portion because the earned income rule doesn't apply to the non-refundable portion. For 2024, you'll need to run the numbers when you know the total cost of support and the earned income. In regards to scholarships and grants have special rules in regards to support (see §152(f)(5)).  I've seen a professional organization's article interpret it one way, but I interpret it another way, so that could be a bit tricky.

Were they cash contributions? I think you need to enter it on the worksheet on Schedule A where you list the charity name and amount, not directly on the Schedule A line. I think that for at least one of the years you had to enter it directly on the 1040 Worksheet (maybe both Schedule A and the 1040 worksheet; I think there was a mini-worksheet on the 1040 Worksheet).

Have you estimated the total cost of support for the ENTIRE year? I suspect that between the parents paying for the first five months and the student loans, it seems unlikely that the student paid for over half of their own support with earned income.

Just to confirm, the parents are not ABLE to claim the child as a dependent, right? Was Advance credit paid (column C of the 1095-A)? Have the parents filed yet?  Are you preparing both returns? Are the parents and child agreeable to do things for the best overall result?  

The Luxury Limits only allow a certain amount of depreciation for vehicle under 6000 pounds, so the five year Recovery Period can be extended much further (although they significantly increased the limits a few years ago, so it is less common now). https://www.irs.gov/pub/irs-prior/p463--2012.pdf#page=21  

@Jim-from-Ohio wrote:  Is there a certain line on Schedule A that it goes on? Looking at program thinking line 31.   I'm wondering why your Schedule A has significantly more lines than my Schedule A.  🤣 Line 16. https://www.irs.gov/publications/p525#en_US_2023_publink1000229603 https://www.irs.gov/instructions/i1040sca#en_US_2023_publink100073879  

@IRonMaN wrote: My guess was that the drop down list of forms doesn't include that form, but it doesn't include grocery lists either so you can just click other.   Yeah, I use "other" when I include my recipe for Lutefisk cake.

@RayH wrote: Its a real shame Intuit doesn't thoroughly test their product   They hardly test any of their products AT ALL.  The numerous errors and problems across all of their tax products are a clear indication that their quality testing department is non-existent (or completely incompetent).   Unfortunately, the error that you pointed out is extremely minor compared to the numerous amount of other significant errors.  

@EDESP wrote: Client purchased ... heat pump AND single stage multi speed ECM 80% gas furnace.  I completed form for $600 tax credit   Have you verified the Heat Pump qualifies for the credit? An 80% gas furnace does NOT qualify for the credit.  For 2023, gas furnaces need to be at least 97% efficient to qualify for the credit. $600?  Is this a 2023 tax return?  You may be entering the Heat Pump in the wrong spot.  The credit for an electric heat pump is 30%, up to $2000 (not $600).

I think it belongs on 8949/Schedule D. On the Schedule C, look at line A (principal business).  Above that are a bunch of "Quickzoom" buttons.  Look at the top Quickzoom button.   If you want it on 4797, I think I would just categorize it as an Amortized Intangible.

@APC2 wrote: our small business is losing money.   An extra $99 a year is causing your "business" to lose money?  If your "business" is not profitable, it seems like you need to make changes to your business or it may be a "hobby". I agree, I absolutely HATE the "subscription" method and I HATE Intuit, but if an extra $99 is causing you to "lose" money, I think you need to adjust your business practices.   There are many alternative software products to try out.  Drake, ATX, OLTPro, TaxActProfessional, TaxSlayer are among the more common and lower cost products.  But don't mistake "lower cost" as "better for your business". If a software cost less money but takes more time and/or has more problems/errors, it could end up REDUCING your business profit due to more time (for example, being able to prepare fewer returns due to more time to enter things or deal with problems).

It sounds like your workflow is very different than mine, so I'm trying to understand how that happens.  Could you please explain how a return was already prepared?  Did another preparer in your firm do it?  If so, why did that preparer indicate it was a work in progress?