An enhancement request has been raised for Reckon APS Tax for the Number of Dependent Children in M1 to flow to IT8.
The development team reports:
M1 does not flow to IT8 because they can be different numbers. If the client uses the children worksheet, then dependants for M1 and IT8 are calculated; if not, he/she has to enter them manually. This is set out in the help.
For the Medicare levy reduction (M1), a ‘dependent child is any child or student who was an Australian resident whom the taxpayer Maintained in 2017-18 and whose Adjusted taxable income (ATI) was below the thresholds.
The help at IT8 states that the definition of ‘dependent child’ for this item is taken from the definition of ‘dependant’ for Medicare levy surcharge purposes.
Different definitions apply to some other tax return items, including item M1 Medicare levy reduction or exemption. When completing those items, you need to apply the specific definition used for each item. In some cases, Reckon APS Tax provides separate fields that you need to complete in addition to this item.
Basically, M1 is income tested and IT8 isn't.