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Child and dependent care credit

Forum|Forum|3 years ago
March 15, 2023
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I have 2 kids, one is 4 yr old and the other one is 7 months.

I contributed $2,400 to my dependent care FSA in 2022 and got $2,600 rollover from 2021.

I spent $16000,00 in pre-school for my 4-yr old boy in 2022, and used $5,000 from my FSA to pay for the part of the tuition fee.

My wife were pregnant and she worked part-time in 2022. Her reported salary for last year was $5,800.

Turbo tax is telling me that we don't qualify for the child and dependent care credit, since my wife's salary is less than $6,000 last year

I wonder, if my wife's pregnancy is treated as disability in IRS rule?

Shouldn't I be able to claim a child care credit for $6000 - $2400 - $2600 = $1000?

-My wife's income is $5,800 for 2022

-We are married filing jointly

-We have a new born baby and a 4-yr old boy.
-We pay preschool for the 4-yr old boy. No day care for the newborn.

-We make <$180,000

Best answer by AmyC

1. You should be getting a credit based on her income of $5,800. Go back to her w2 and make sure that it is under her name and not yours. Pub 503 states that you should have earned income. There is no minimum listed.

2. Pregnancy is not considered a disability but while pregnant there could be an impairment causing disability. See Pregnancy Discrimination and Pregnancy-Related Disability

3. You could claim $1,000 spent on child care which is not the same as the credit. The credit is 20% of the lowest of 3 values, see form 2441.

4. You have two children to qualify for the credit which has a maximum of $6,000 minus the $5,000 from FSA. Leaves $1,000 spent on eligible child care.

What are you showing on form 2441? Your part III should have the excluded benefits from the FSA. To view your return:

In desktop, switch to Forms Mode.

For online, see How do I preview my TurboTax Online return before filing?

AmyCAnswer

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