Dependant care credit

Forum|Forum|2 years ago
January 17, 2024
2 replies
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Is anyone else having an issue inputting their dependant care credit? It says to qualify both spouses must have earned income, full time student, or disabled. Turbotax is asking me to check if me and my spouse were full time students or disabled. It is not giving an option to chose that we have earned income. Therefore, they are telling me that we don't qualify for this credit? Is this just a software error on TurboTaxes side?

TurboTax Deluxe Online

Best answer by Vanessa A

You must enter your W-2's before entering the credit. Be sure in the W-2 section that you assigned your W-2 to you and your spouses to them. This is a common reason people get that error.

Go back and click on the W-2 and be sure one is listed for Taxpayer and the other is listed as Spouse.

Vanessa AAnswer

You must enter your W-2's before entering the credit. Be sure in the W-2 section that you assigned your W-2 to you and your spouses to them. This is a common reason people get that error.

Go back and click on the W-2 and be sure one is listed for Taxpayer and the other is listed as Spouse.

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xmasbaby0

Employee

CHILD AND DEPENDENT CARE CREDIT

You will not get the childcare credit until (unless) you enter income earned from working. The credit does not work unless you enter your income first. If you are filing a joint return you must show income for both spouses, or show that one or both of you was a student or disabled. If you have self-employment income and show a loss you will not get the childcare credit. You will not get the credit if you are filing married filing separately.

If you have entered all of your income and you have entered your dependent(s) then work on the childcare credit by entering the Tax ID or Social Security number of your childcare provider and enter the amount you paid for the childcare.

One of the most common mistakes that messes up the childcare credit for people is listing all of the earned income under only one name on a joint return. Make very sure that your incomes are listed under each of your names. It’s pretty easy to check. Go to the Income section, and click “update” on Wages and Salary. That will take you to the W-2 Summary. Do you see income listed under both of your names?

The person receiving the care had to be 12 or under or qualified as mentally or physically disabled. To claim the childcare credit you need to be filing as Head of Household or Married Filing Jointly. (NOT married filing separately)

If your child was born in 2022 make sure you say the child lived with you all year. The credit is a percentage of your expenses based on your AGI (the higher the income, the lower the percentage) You must provide the Social Security number for each child you are claiming, and the Social Security number or Tax ID for each care provider.

In the case of divorced or never-married parents—only the custodial parent can use the childcare credit.

And remember that the childcare credit is a NON-refundable credit. It can reduce your tax owed down to zero, but it is not added to your refund.

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

**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.**