Question

TurboTax Dropping Dependent Care Credit in the review section

Forum|Forum|4 years ago
March 19, 2022
1 reply
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The summary section of the tax break shows $XXX amount for 2021 Dependent Care Credit.

The summary section of the tax break shows $XXX amount for 2021 Child Tax Credit.

However, once we get to the end of the Federal section it does a full review of everything and it gives us the above mentioned credit for the Child Tax Credit, but lists $0 for Dependent Care Credit (which is different than what was listed on the summary section beforehand).

With the new laws, shouldn't we be able to claim some of the Dependent Care Credit in addition to the Child Tax Credit? We can't figure out why TurboTax dropped it off.

Thanks!

TurboTax Free Edition Online

R

RaifH

Yes, you can claim the child tax credit and the child and dependent care credit in the same year. You do not have to choose one or the other. As for why it is dropping off on the display screen, you may first want to check your Form 1040 to see if it is on there. It is possible it's still there, it is just not being displayed on the summary screen:

Open or continue your return.
Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
With the Tax Tools menu open, you can then view your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu
Scroll down until you see Form 1040 Line 28. This should have your child tax credit. Form 1040 Line 31 will include your child and dependent care credit. If you are receiving other miscellaneous credits, you can see the exact amount of the child and dependent care credit on Schedule 3, Line 13g.

If the credit is missing, you can check to make sure you are eligible for the credit. Both you and your spouse, if applicable, must be working or full-time students to receive this credit. Your child must be under 13 and the caretaker cannot be another dependent on your return. You are also not eligible for the credit if there is an amount in Box 10 of your W-2 for dependent care benefits that is greater than $8,000 or equals or exceeds the amount that you spent on child care.

If it does seem like you should be eligible and you are not getting the credit, you may revisit the section by clicking Revisit in the Federal > Deductions & Credits > You and Your Family > Dependent Care Credit section. Ensure the questions are all answered and the expenses are entered correctly.