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Disabled Child Treatment in Proseries

jesmithjr86
Level 3

A child 20 years old and has a permanent disability and is listed on the tax return with the EIC indicator of D selected disabled child 19 or older and the child disabled indicator checked.  It does seem to affect the EIC or CTC balance. Any guidance on how it works?

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Accepted Solutions
TaxGuyBill
Level 15

@jesmithjr86 wrote:

So just to confirm there is no benefit to having 4 dependents for either the EIC or CTC?


 

The Earned Income Credit is the same if you have three qualifying children or more than three qualifying children.

The Child Tax Credit usually continues to increase with more children, but you have already maxxed out the refundable portion of the credit so it may not give any more benefit.

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3 Comments 3
TaxGuyBill
Level 15

@jesmithjr86 wrote:

 It does seem to affect the EIC or CTC balance.


 

Do you mean does "not" affect?

Is the child showing up on Schedule EIC (assuming there are only three or less qualifying children)?

Are you also indicating the child is a dependent (which is different than the EIC indicator)?  If so, is the child showing up as a dependent on the 1040 and on line 6 of Form 8812?

 

jesmithjr86
Level 3

Thank you for the response.  Somehow I missed it until today.  So I was able to test your suggestions by deleting the dependent and adding it back in. The EIC changed but the CTC did not.  So just to confirm there is no benefit to having 4 dependents for either the EIC or CTC?

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TaxGuyBill
Level 15

@jesmithjr86 wrote:

So just to confirm there is no benefit to having 4 dependents for either the EIC or CTC?


 

The Earned Income Credit is the same if you have three qualifying children or more than three qualifying children.

The Child Tax Credit usually continues to increase with more children, but you have already maxxed out the refundable portion of the credit so it may not give any more benefit.

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