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Employee
December 26, 2023
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child and dependent care credit not qualifying error

  • December 26, 2023
  • 1 reply
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My wife does not have W-2 income, and so turbotax is not allowing the child and dependent care credit. However, the IRS rules (https://www.irs.gov/taxtopics/tc602) state clearly that this credit is available to those with earned income or are actively looking for work. My wife is actively looking for work--how do I tell this to Turbotax?

    Best answer by xmasbaby0

    Sorry-----the catch to claiming the childcare credit is that your spouse has to actually FIND a job and earn some income from it.   Merely looking for a job is not enough.   When you file a joint return you both have to show income earned from working or you will not get the childcare credit.  The exception would be if your spouse is disabled or is a full-time student.   If one or both of you is self-employed, you will not get the childcare credit if you show a loss.

    1 reply

    xmasbaby0Answer
    Employee
    December 26, 2023

    Sorry-----the catch to claiming the childcare credit is that your spouse has to actually FIND a job and earn some income from it.   Merely looking for a job is not enough.   When you file a joint return you both have to show income earned from working or you will not get the childcare credit.  The exception would be if your spouse is disabled or is a full-time student.   If one or both of you is self-employed, you will not get the childcare credit if you show a loss.

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**