What does a $4,000 tax break mean when you claim dependents?

"qualified" is an overstatement. The dependent deduction was $4,000 per dependent for everyone, for every dependent. Read your 1040 ( -- , A , or EZ ) and you will see that.You are also getting the $1,000 extra tax credit for the child, and maybe some EIC. {Except something else is going on [your W-4 is wrong?] because you should not owe any tax unless you made really big bucks. <- best guess(es) with limited info.} Have someone review your tax form.

That means your tax bill was reduced by your top marginal rate times $4,000. For most wage earners that will reduce the bill by between $400 and $600. I can't tell from your narrative exactly what Turbo Tax says you owe but I'm guessing that you owe $714 instead of somewhere between $1,114 and $1,314.

you misunderstood what TT was telling you

there is no $4K 'tax break'

you claim for personal exemptions $4K for each person you name on the tax return, this could be you, your wife and any dependent you are eligible to claim, this is not a 'break', it is standard

now if you have a child claimed as a dependent under 17 in your household you do have a child tax credit, which could be considered a 'break' of $1K for each child

in addition to that if your income is low you might be eligible for the earned income credit this amount will depend on your earned income, how old you are and how many children you claim as dependents

The $714 "tax owed" number is the final result after including dependents. $4000 of your income was not taxed because you have a dependent. Your tax would have been around $1200 without that exemption.

No. It mean $4000 of your income isn't taxed. It might lessen what you owe, but if tha $714 is turbotax's final amount any savings is already deducted.

If you fill out the forms properly, in the end they will tell you if you owe money or are due a refund. So what were the results when you filled everything out? If you end up owing money at this time it is a bit late now because you will also owe interest and penalty for filing late.

If it says you owe $714, you owe $714, the deduction for the child is already figured in.

Fill the papers out and it will be explained