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February 8, 2025
Question

Why am I not eligible for Dependent Care credit? My wife and I both earned money, but my wife earned less than $6000. TurboTax says we're not eligible.

  • February 8, 2025
  • 2 replies
  • 0 views
We both have income under our names. TurboTax asks if we were full time students or disabled. This isn't the case, so we're ineligible. I thought any expenses for child care while both parents worked was deductible.

    2 replies

    VolvoGirl
    Employee
    February 8, 2025

    Have you entered all your income?  You both need earned income.  Make sure each W2 is assigned to the right spouse.    If you have self employment income you need to have a profit to qualify.

     

    See the Child Care Credit for qualifications

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

    February 8, 2025

    My W2 is entered, and her 1099-NEC is entered. She earned a profit for the year.

    Employee
    February 8, 2025

    Th childcare credit is available on a joint return if both parents worked and earned income. You have to enter your income before you try to work on this credit.   But if one or both of  you had self employment income that showed a loss, you cannot get the credit.  And....your spouse earned a small income.  

     

    Try this IRS interactive tool to see what it says.

    https://www.irs.gov/help/ita/am-i-eligible-to-claim-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.**
    February 8, 2025

    Thanks for the response. I went through the questions and I should qualify. I double checked income and we both have it, and she doesn't show a loss.

    Employee
    February 8, 2025

    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.

    **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.**