### **How to create a dependent (qualifying child)**
#### **Profile 1.1:**
##### In Family and household \> person
DOB: June 15, 2004
Your sibling
Full-time student
No permanent disability
Not physically or mentally unable to care for themselves
Lived with you all year
Lived with you all year in the U.S.
You paid more than half the cost of keeping up the home
SSN
No work restrictions
Did not pay for more than half of own living expenses
Married
Filing a joint return
Neither of them are required to file
Only filing to claim a refund of taxes paid
U.S. citizen
No one else qualifies to claim them
#### **Profile 1.2: a qualifying child dependent who also meets requirements for CTC**
##### In Family and household \> person
DOB: June 15, 2008 (for CTC they must be under 17 at the end of the tax year)
Your biological child
Not unable to care for themselves because of physical or mental disability
Lived with you all year
No other biological or adoptive parent
Lived with you all year in the U.S.
You paid more than half the cost of keeping up the home
SSN
No work restriction listed on their Social Security card
Did not pay for more than half of own living expenses
Not married
U.S. citizen
No one else qualifies to claim them
Yes, claim them as a dependent
SSN: 232-00-3232
IRS has not issued them an IP PIN
### **How to create a dependent (qualifying relative)**
#### **Profile 1.1:**
##### In Family and household \> person
DOB: April 15, 2010
Not related
Not physically or mentally unable to care for themselves
Lived with you all year
SSN
No work restrictions
You paid more than half of their living expenses
Their gross income was less than $5,050
Not married
U.S. citizen
No one else qualifies to claim
Not required to file a tax return
Not filing a tax return
### **How to create a dependent taxpayer (non MFJ)**
#### **Method 1**
##### In About you:
Could anyone claim you as a dependent on their federal tax return?
Answer **Yes.**
Is that person required to file a federal tax return?
Answer **Yes.**
Is that person claiming you as a dependent on their 2024 federal tax return?
Answer **Yes** or **No** (doesn't matter).
#### **Method 2**
##### In About you:
Could anyone claim you as a dependent on their federal tax return?
Answer **Yes.**
Is that person required to file a federal tax return?
Answer **No.**
Is that person filing a 2024 federal tax return?
Answer **Yes.**
Is that person only filing a 2024 federal tax return to get a refund of money they paid toward taxes?
Answer **No.**
Is that person claiming you as a dependent?
Answer **Yes** or **No** \- does not matter for this situation.
### **How to create dependent taxpayers (MFJ)**
#### **Method 1**
##### In About you:
Could anyone claim you as a dependent on their \<TY\> federal tax return?
Answer **Yes**.
Is that person required to file a \<TY\> federal tax return?
Answer **Yes**.
Is that person claiming you as a dependent?
Answer Yes or No \- does not matter for this situation.
### **In Spouse:**
Choose Married Filing Jointly filing status
Could anyone claim \<MFJSpouse\> as a dependent on their \<TY\> federal tax return?
Answer **Yes**.
Are you or \<MFJSpouse\> required to file a \<TY\> federal tax return?
Answer **No**.
Do you and \<MFJSpouse\> want the opportunity to claim tax benefits on this federal tax return?
Answer **No.**
Is that person claiming \<MFJSpouse\> as a dependent?
Answer Yes or No \- does not matter for this situation.
#### **Method 2**
##### In About you:
Could anyone claim you as a dependent on their \<TY\> federal tax return?
Answer **Yes**.
Is that person required to file a federal tax return?
Answer **No.**
Is that person filing a 2024 federal tax return?
Answer **Yes.**
Is that person only filing a 2024 federal tax return to get a refund of money they paid toward taxes?
Answer **No.**
Is that person claiming you as a dependent?
Answer Yes or No \- does not matter for this situation.
### **In Spouse:**
Choose Married Filing Jointly filing status
Could anyone claim \<MFJSpouse\> as a dependent on their \<TY\> federal tax return?
Answer **Yes**.
Are you or \<MFJSpouse\> required to file a \<TY\> federal tax return?
Answer **No**.
Do you and \<MFJSpouse\> want the opportunity to claim tax benefits on this federal tax return?
Answer **No.**
Is that person claiming \<MFJSpouse\> as a dependent?
Answer Yes or No \- does not matter for this situation.
### **How to create a taxpayer that qualifies for the special benefit split (custodial parent)**
#### **Profile 1.1**
##### In Family and household \> person
DOB: February 18, 2019
Your biological child
Not unable to care for self
Lived with you all year
Has another biological or adoptive parent
I signed a form stating I wouldn't claim them
Still in custody on July 2 TY
Lived with one or both of us for more than 6 months
Spent more nights with me
Divorced
One or both of us paid for more than half of support
Lived with me in the United States for 12 months
I paid more than half the cost of keeping up the home
SSN
No work restrictions
They did not pay more than half of their own living expenses
Not married
U.S. citizen
### **How to create a taxpayer that qualifies for the special benefit split (noncustodial parent)**
#### **Profile 1.1**
##### In Family and household \> person
DOB: February 18, 2019
Your biological child
Not unable to care for self
Lived with you all year
Has another biological or adoptive parent
The other biological or adoptive parent signed a form or declaration stating they wouldn’t claim them
Still in custody on July 2 TY
Lived with one or both of us for more than 6 months
Spent fewer nights with me
Divorced
One or both of us paid for more than half of support
### **How to create a taxpayer who is the "other eligible taxpayer" (non parent) in a special benefit split scenario who may qualify to use the child as their qualifying person for certain tax benefits**
#### **Profile 1.1**
##### In Family and household \> person
DOB: June 8, 2022
Your foster child
Not unable to care for self
Lived with you all year
In the legal custody of their biological or adoptive parents on July 2, \<2024\>
Biological or adoptive parents are still alive
One of the parents signed a form stating they wouldn't claim the child
The parents meet the requirements of the rule for children of divorced or separated parents (or parents who live apart)
The child's custodial parent is not using the child to qualify for tax benefits listed on screen
Your AGI is higher than the child's custodial parent’s AGI
Lived with you in the U.S. for 12 months
You paid more than half the cost of keeping up the home
Has tax ID \- SSN
No work restrictions
Did not pay for more than half of own living expenses
Not married on December 31
U.S. citizen
At this point, you should be told that the child didn’t meet the requirements to be your dependent, but that you may still be able to use them as your qualifying person for other tax benefits.
## **Filing statuses**
### **How to create a qualifying person for HOH filing status**
#### **Method 1: HOH qualifying person who is your dependent**
**_Note:_** _Boxes 2–6 don't need to be adjusted along with box 1\. But if you're looking to make a realistic W-2 scenario, here's how they generally relate to box 1:_
- **Most common:** Employer contributions, which are marked on Form W-2, box 12, code W. They're reported in the Jobs subsection and have already been excluded from taxable income by your employer.
- **Less common:** Contributions not through an employer. You'll need to manually report these in the HSA subsection. And then they'll be deducted from your taxable income through the HSA deduction.
### **How to add Social Security benefits (Form SSA-1099)**
#### **Scenario 1**
**Box 5, Net benefits for \<TY\>: $1,000**
Box 6: blank
#### **Taxable amount is complicated**
**Box 5** \= net benefits from Social Security
**The taxable amount is lower than the net benefits.** Calculating the taxable Social Security amount depends on the total amount of net Social Security benefits, other income, and certain deductions/exclusions. And there are instances where none of your benefits are taxable.
Don't add Social Security if you're just trying to increase the overall taxable amount on a return.
### **(see CDCC section for Dependent Care Benefits)**
- You and/or individuals listed on your federal tax return were enrolled in a qualified Marketplace health plan
- Don't get knocked out. For example:
- If you have dependents, they should not required to file a federal tax return for this year
- Only have one Form 1095-A
- If MFS:
- **Yes,** you meet both requirements for MFS taxpayers
- **No,** this will not be the fourth year in a row that you're claiming the Premium Tax Credit and using a MFS filing status because of domestic abuse or spousal abandonment
- If your household income was below %100 of the federal poverty line: **Yes,** there was someone on the qualified health plan who was not eligible for Medicaid because of their immigration status
- **Yes,** at least one person enrolled in the qualified health plan met all the requirements for at least one month in the tax year
#### **How to have excess advance payments of PTC**
##### Method 1
###### **In Credits \> Premium Tax Credit | Don’t qualify for PTC but have advance payments of PTC (APTC):**
There are many ways to not qualify PTC. For a thrilling, choose-your-own adventure experience, see the How to qualify for PTC (or not) recipe. The steps below will ensure you don't qualify and focus on achieving the Excess APTC outcome.
- (If you have dependents) No, none of them are required to file
- No, you don't have more than one Form 1095-A
- No, there isn't someone other than you and/or those listed on your tax return on your Form 1095-A
- No, you or your fam is not listed on someone else's Form 1095-A
- (If asked) No, nobody listed on Form 1095-A had an immigration status that wasn't eligible for Marketplace coverage
- Yes, advance payments of the Premium Tax Credits were made
- **No,** nobody was also eligible for or enrolled in employer-sponsored health coverage while enrolled in the qualified Marketplace health plan
- Policy number: 123456789
- Any Marketplace state
- Policy dates: 1 or more months
- No, at least one person didn't see all the requirements for at least one month
- Enter the annual total for monthly advance payment of premium tax credit from column C, line 33\. **Answer:** Enter any amount. This amount will be considered excess because you didn’t qualify for the PTC.
There are many ways to qualify for PTC. For a thrilling, choose-your-own adventure experience, see the How to qualify for PTC (or not) recipe. The steps below will ensure you qualify and focus on achieving the Excess APTC outcome.
- (If you have dependents) No, none of them are required to file
- No, you don't have more than one Form 1095-A
- No, there isn't someone other than you and/or those listed on your tax return on your Form 1095-A
- No, you or your fam is not listed on someone else's Form 1095-A
- (If asked) No, nobody listed on Form 1095-A had an immigration status that wasn't eligible for Marketplace coverage
- Yes, advance payments of the Premium Tax Credits were made
- No, nobody was also eligible for or enrolled in employer-sponsored health coverage while enrolled in the qualified Marketplace health plan
- Policy number: 123456789
- Any Marketplace state
- Policy dates: 1 or more months
- **Yes**, at least one person didn't see all the requirements for at least one month
- Enter the enrollment premiums\*
- Enter the Second Lowest Cost Silver Plan (SLCSP) premium amount\*
- Enter the APTC amount.\*
- **The easy way:**
- Enter an APTC amount that is greater than the enrollment premium or SLCSP amount you entered, whichever of those is greater.
- **The slightly harder, more realistic way —** The APTC amount should be greater than the taxpayer’s allowed PTC, which is not displayed on the front-end but is based on their household income and family size, and the enrollment and SLCSP premium amounts you entered. How to ensure you end up with Excess APTC:
- Have household income and a family size that puts you above 151% of the federal poverty line (in this case, household income refers to AGI minus your deductions, aka MAGI, which is displayed at the end of the deductions section) — [https://www.irs.gov/instructions/i8962\#en_US_2023_publink100044414](https://www.irs.gov/instructions/i8962#en_US_2023_publink100044414) — The greater your income, the more you’re expected to contribute to your premium payments.
- IRL, your APTC would never be greater than your enrollment premiums. Enter an APTC value equal to or smaller than the SLCSP premium amounts you entered.
\* Direct File will ask you to enter either annual or monthly amounts. The option presented is based on how you answered earlier questions.
- Have taxable income (aka MAGI) that translates to less than 400% of the federal poverty line for your household and state. For the 48 Contiguous States and the District of Columbia:
- $54,156 for a family size of 1
- $73,240 for a family size of 2
- $92,120 for a family size of 3
- See the [full breakdown for income levels at 100% of the federal poverty line](https://www.irs.gov/instructions/i8962#en_US_2023_publink100044414) for more detail (multiple by 4 to get the 400% value)
- See “How to have excess advance PTC” (either Method 1 or 2 will work)
- Your Excess APTC should be greater than the applicable repayment limitation for your [household income as a percentage of federal poverty line](https://www.irs.gov/instructions/i8962#en_US_2023_publink100010959%C2%A0)
- You’ll only see the Excess APTC amount, and whether a repayment limitation applies, on the outcome screens
#### **Savers: How to make a Saver’s Credit qualifying person who is HOH**
##### Saver's Credit
The Saver's Credit, also known as the Retirement Savings Contributions Credit, is a tax benefit for low- to moderate-income taxpayers that offsets a portion of workers' voluntary contributions to their Individual Retirement Arrangements (IRAs), 401(k) plans and similar workplace retirement programs.
#### **Savers: How to make a Saver’s Credit qualifying person who is Single or MFS**
##### Saver's Credit
The Saver's Credit, also known as the Retirement Savings Contributions Credit, is a tax benefit for low- to moderate-income taxpayers that offsets a portion of workers' voluntary contributions to their Individual Retirement Arrangements (IRAs), 401(k) plans and similar workplace retirement programs.
#### **Savers: How to make a Saver’s Credit qualifying person who is MFJ**
##### Saver's Credit
The Saver's Credit, also known as the Retirement Savings Contributions Credit, is a tax benefit for low- to moderate-income taxpayers that offsets a portion of workers' voluntary contributions to their Individual Retirement Arrangements (IRAs), 401(k) plans and similar workplace retirement programs.
Add a qualifying child dependent who meets requirements as a CTC qualifying child (Profile 1.2)
###### **In Jobs**
Add a W-2 and use an income amount in **box 1** that's at least a few hundred dollars more than the [standard deduction amount for the filing status you use](https://apps.irs.gov/app/vita/content/00/00_13_005.jsp)
Note: DF's data import may offer to add a form W-2 for you automatically. If your aim is to qualify for CTC, you may need to update the amount of income that imported W-2 has in box 1, because:
Note: the annual income limit for CTC is $200,000 ($400,000 if filing a joint return), adding too much income can disqualify you from CTC.
###### **In Deductions**
Note: the HSA, educator expense, or student loan interest deductions will reduce your AGI. If you want to make sure you get an amount for CTC, make sure your AGI turns out to be more than your standard deduction.
###### **In Credits**
IRS hasn't denied or reduced the amount of your credits for CTC, ACTC or the Credit for Other Dependents
### **ODC**
#### **ODC: How to qualify a child or dependent who is NOT a "qualifying child" for purposes of the Child Tax Credit.**
##### Credit for Other Dependents
Taxpayers with dependents who don't qualify for the Child Tax Credit may be able to claim the Credit for Other Dependents.
- Note: this question will show up if you made them a 'citizen by the end of the year' or a 'resident all year' but won't be asked you made them a citizen all year
- Can't be claimed as a dependent by another taxpayer
- Note: this question will show up if you made them a 'citizen by the end of the year' or a 'resident all year' but won't be asked you made them a citizen all year
- Can't be claimed as a dependent by another taxpayer
Note: this credit requires **earned****income**, but has an [income limit tied to filing status](https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables#eitctables) and an investment income limit, too. Keeping AGI to $18000 will work for Single, QSS, or MFJ, and low interest income $0-$1,550.
Note: this credit requires **earned****income**, but has an [income limit tied to filing status](https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables#eitctables) and an investment income limit, too. Keeping AGI to $18000 will work for Single, QSS, or MFJ, and low interest income $0-$1,550.
- Note: this question will show up if you made them a 'citizen by the end of the year' or a 'resident all year' but won't be asked you made them a citizen all year
- Can't be claimed as a dependent by another taxpayer
- Note: this question will show up if you made them a 'citizen by the end of the year' or a 'resident all year' but won't be asked you made them a citizen all year
- Can't be claimed as a dependent by another taxpayer
Note: while you can do the EITC-with-qualifying-children scenario with different filing statuses, there are specific additional rules [for MFS](https://www.irs.gov/publications/p596#en_US_2023_publink1000297448) and HOH to be considered unmarried.
Note: this credit requires **earned****income**, but has an [income limit tied to filing status](https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables#eitctables) and an investment income limit, too. Keeping AGI to $18000 will work for Single, QSS, or MFJ, and low interest income $0-$1,550.
Note: this credit requires **earned****income**, but has an [income limit tied to filing status](https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables#eitctables) and an investment income limit, too. Keeping AGI to $18000 will work for Single, QSS, or MFJ, and low interest income $0-$1,550.
- Note: this question will show up if you made them a 'citizen by the end of the year' or a 'resident all year' but won't be asked you made them a citizen all year
- Can't be claimed as a dependent by another taxpayer
- Note: this question will show up if you made them a 'citizen by the end of the year' or a 'resident all year' but won't be asked you made them a citizen all year
- Can't be claimed as a dependent by another taxpayer
Note: while you can do the EITC-with-qualifying-children scenario with different filing statuses, there are specific additional rules [for MFS](https://www.irs.gov/publications/p596#en_US_2023_publink1000297448) and HOH to be considered unmarried.
Note: DF will ask you for this person's SSN and IP PIN at this point in the flow only if you've already gone through the Credits section, were determined to qualify for EITC and then went back to add another EITC qualifying child in Family and HH. Usually, it will just prompt you for this info in the Credits section.
Note: this credit requires **earned****income**, but has an [income limit tied to filing status](https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables#eitctables) and an investment income limit, too. Keeping AGI to $18000 will work for Single, QSS, or MFJ, and low interest income $0-$1,550.
Note: this credit requires **earned****income**, but has an [income limit tied to filing status](https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables#eitctables) and an investment income limit, too. Keeping AGI to $18000 will work for Single, QSS, or MFJ, and low interest income $0-$1,550.
