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jb130
Level 1

My wife and I recently added a dependent child to our home, so I added it to my QBSE tax profile. Why didn't it lower my estimated taxes?

I know that we'll be getting the $3,000 child care tax credit (child wasn't in our home for 2020 taxes, so credit will be applied at tax time 2021 rather than the monthly payments in the news). But my quarterly taxes summary, as estimated by QBSE, didn't change at all. I even experimented with adding more dependents to my profile, and it still didn't change. It should change, shouldn't it? What's the point of having the option to add dependents if it doesn't affect the taxes? Thanks for insights!
2 Comments 2
Candice C
QuickBooks Team

My wife and I recently added a dependent child to our home, so I added it to my QBSE tax profile. Why didn't it lower my estimated taxes?

Hey there, @jb130

 

I'm so glad to see you join us here in the Community. Allow me to jump on in and give you some details to help answer your question about your taxes. 

 

To clarify, are you selecting the right year? This may be why your estimated taxes are being affected. Let's go ahead and verify that to be sure. Here's a visual below: 

 

 

Also, here's some extra information about dependents in your QuickBooks Self-Employed account: 

 

Dependents must:

  • Earn less than $0 annually (not including Social Security benefits)
  • Get at least half of their support from you
  • Be US citizens
  • Not file jointly with someone else

Dependent children must also:

  • Live with you at least half the year
  • Be less than 19 years old (or 24 for full-time students)

 

Moreover, check out this helpful article about how QuickBooks tracks self-employment taxes

 

I've got your back if there's anything else I can help with QuickBooks. I want to make sure you're all set. Keep safe!

john-pero
Community Champion

My wife and I recently added a dependent child to our home, so I added it to my QBSE tax profile. Why didn't it lower my estimated taxes?

Since all you are doing at this point is telling the program that you have dependents it is possible you are in a sweet spot where your taxes do not get reduced based on adding more dependents. You certainly are not in a situation where your income would go negative in order to get EITC, but your income may be high enough that dependent credits max out.

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