We are a family with a family income of over $150k. When prepping our returns, Turbotax is giving us the credit noted in the subject line. I have read that the basis for the credit is adjusted family net income. Essentially any family earning over $150k should not be eligible. The program seems to be giving us the credit based on my wife's income level and not considering the family income level. I am prepping the returns together. Has anyone else seen this and is it a known problem? I have checked with an accountant friend of mine and their program bases it on the family income.
I think we may have the same issue. We are about 120k worth and it seems in the section where is asks about supporting people, we choose "spouse as the other supporting person" when Turbo asks who supports ALL your eligible dependents, when doing this the refund amount changes dramatically. Is this similar to yours? Turbo is suppose to have an update to fix errors on Feb 27th by 2pm, maybe this is part of it.
Which option do you select when your in the "CARE" form, if we just skip the form seems to have a higher return $$
Yes - I can confirm this - the program ignored my income and based the credit on my wife’s income. She got the credit, adjusted based on her income only. We’re over $150k and shouldn’t have qualified.
So did you submit it then? What option did you select when it goes to the "Childcare Access and Relief from Expenses (Care) Tax Credit ". I basically selected "You" as selecting my spouse the credit goes down. We havent submitted yet. Waiting for the update to download to see the changes, I'm not sure what to do if it doesnt work.
Any idea how to calculate the adjusted net income for the supporting persons? (Entering the greatest total) section?
I have spoken to Intuit. I demonstrated the issue and they are aware of the situation. They’ve told me they’ve scheduled a Hotfix for March 4.
Got it thanks.
I also tried online version and it doesnt include the income like you mentioned, so online no Issues. Too bad I was excited !!
Is the fix suppose to be downloadable March 4th then? Did they say anything about the Feb 27th 2pm fix.....
Hi. I am having the same problem. When I select me and my husband, the refund changes to a lot less. You would think that turbo tax wouldn't automatically calculate the refund until those questions are answered. I have contacted turbo tax and they are confused with what I am talking about. When I select only myself, there is a $800 difference in my return.
What did you end up selecting then?
The online version doesn't auto calculate and I got the same return as if I selected both of us and then enter my income(husband) from line 23600 when it asks for the other supporting persons income from that line. It's confusing for sure. If we select just the "you" being my wife, then the return is significantly higher then selecting more then one supporting person.
thank you for the info. We're in the same situation (no option to remove this CARE credit). I believe I originally added it by mistake, and was alerted to the error on the review, but not it can't come off. I'll check back in after the 4th. thanks!
Just select option 2 and select you or the spouse as the other supporting person and then enter your adjusted income from line 23600. Itll take that credit out and give you the correct amount once you enter that number in. The credit just assumes the supporting person as one person doesnt auto calculate multiple or assume it's two people like the online version does.
I have run into this as well. When I added spouse as a caregiver in the CARE section, my refund dropped dramatically. Guess I just want to know if you have to add spouse as well, or can just lower income person claim it.
You'll want to start back at the Childcare Expenses Intro (sidebar > Deductions > Childcare Expenses).
1. After entering your Childcare Expenses, (and they are NOT being claimed by the higher income earner), continue
2. When you land on the "Childcare Access and Relief from Expenses (CARE) tax credit", you should have checked off YES to "Did all eligible children have the same supporting person(s)?" and ONE to "Without counting one of you, how many other supporting persons are there for all eligible children?".
The first screenshot below shows "how to check the boxes", the second shows the Provincial Tax Summary with NO CREDITS for a couple who's income exceeds $150k.
Why are you answering this privately? We all have the same Question.
Why does applying for the "Childcare Access and Relief from Expenses (CARE) Tax Credit" reduce my return drastically?
seems like I would be better off not applying for it.
Your link to "Here is how to claim caregiver credit for your spouse" does not appear to address the above.
Please advise accordingly,
Thanks
I was wondering the same thing, both private message, and the link that doesn't pertain to what my question is.
You'll want to start back at the Childcare Expenses Intro (sidebar > Deductions > Childcare Expenses).
1. After entering your Childcare Expenses, (and they are NOT being claimed by the higher income earner), continue
2. When you land on the "Childcare Access and Relief from Expenses (CARE) tax credit", you should have checked off YES to "Did all eligible children have the same supporting person(s)?" and ONE to "Without counting one of you, how many other supporting persons are there for all eligible children?".
The first screenshot below shows "how to check the boxes", the second shows the Provincial Tax Summary with NO CREDITS for a couple who's income exceeds $150k
Usually we get about 20% of the cost of daycare back as a tax refund. This time when I entered the $10K of expenses the refund went up by that same amount. Then, when completing the CARE page it dropped by $1.5K but still giving me about 85% back on child care expenses. This can't be right. Where's the Turbo Tax Administrators / Tech Support in all of this? The software is up to date as of April 10th, 2020.
The first amount can't be right. You don't get back exactly what you paid. And I can't judge the second amount because I don't know if you have paid these expenses for one child or more and the age of the children and what is your income. The software will calculate the correct amount when you finish the CARE page. The child care expenses is a deduction based on your tax rate federally and provincially. So it could be 20% more or less depending on the net income of each parent.
If you still have issues, please contact our support line: https://support.turbotax.intuit.ca/contact/
I hope this was helpful