I make $66000/yr and my wife only makes $5000. Why does Turbo Tax calculate the "family tax cut" credit to be $0?

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1 person found this helpful

I had the same problem!  There's a workaround, but you'll have to do your taxes manually or find an accountant who's software allows him/her to manually adjust the forms.

Have TurboTax print your return, and look at your Schedule 1-A.  If line 10 in column 1 is a negative amount, then decrease the split amount (on line 6) until line 10 is a positive amount.  

TurboTax does not optimize the Family Tax credit.  It simply splits your taxable income to the maximum amount (50% to a maximum of $50k); but, if your non-refundable tax credits may exceed your 'tax on adjusted income' so I had to get my accountant to fix the split amount it with his software!  

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