Why don't we qualify for the Dependent Care Credit if both my wife and I earned an income for 2022?

Do you have a FSA that you used for education expenses?

Make sure that the W-2's are correctly assigned to both the taxpayer and the spouse.  Follow these steps:

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Select Edit / Add to the right of Job (W-2).
• At the screen Your W-2 info so far, under Name, are the W-2's correctly assigned to the taxpayer and spouse?

To qualify for this credit, you must meet all of these criteria:

• You (and your spouse, if filing jointly) must have earned income.
• You paid caregiving expenses so that you (and your spouse, if filing jointly) could work or look for work
• You paid a caregiver to care for a qualifying person.  The caregiver cannot be:
  • Your spouse
  • Your dependent
  • Your child if they were under 19 on the last day of 2022, even if not your dependent
  • The parent of the Qualifying Person, if the Qualifying Person is your child under the age of 13 during 2022
• Your filing status is not Married Filing Separately (except under certain circumstances)
• You can provide the care provider's name, address, and their SSN, ITIN, or EIN on your return (unless it's a tax-exempt organization)

The credit is worth as much as 35% of your qualified expenses, up to $3,000, (for one qualifying person), and $6,000 (for two or more qualifying persons). Your percentage depends on your AGI, with the higher percentages applying to lower incomes and vice-versa.

TurboTax will determine your eligibility and calculate the maximum credit allowed.

What is the Child and Dependent Care Credit?

@ajmesa1