Solved

Why is Dependent Care Credit not listed in refund summary? The IRS says it is refundable for 2021. (https://www.irs.gov/newsroom/child-and-dependent-care-credit-faqs)

Forum|Forum|4 years ago
January 28, 2022
3 replies
0 views

I've seen community answers suggesting that the Dependent Care Credit is not refundable, and will only reduce the tax liability to zero. But that seems to contradict the IRS statements in the link above. See "Claiming the Credit: Q10" in linked webpage above.

TurboTax Deluxe Online

Best answer by gilmelanthony

Hi @MayaD I can confirm we have answered Yes for both Married filing jointly, as well as the principal place of residence being in the US.

But I think I have figured this out. I removed the Dependent care credit and compared the refund summary. And the difference is that the system was not counting the Dependent Care Credit as a line item under credits. Rather it appears to have applied the credit as a reduction to our overall tax liability, not as a separate line item so there is no note of it being included in the summary. But I know it was added because the reduction amount matches the amount of the credit from the Deductions & Credits form.

This credit is hard to identify in the refund summary unless you do a before and after comparison when adding this credit. Easy to miss.

But I can confirm it is being counted, just not where I expected to find it.

Thanks!

B

Bsch4477

Employee

New in 2021, dependent care credit is refundable.

M

MayaD

Is your filing status Married Filing Separate?

Per IRS

If you are married, you must file a joint return to claim the credit. irs.gov

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

G

gilmelanthonyAuthor

Thank you @MayaD for the reply.

Yes, we are married and filing as "Married Filing Jointly".

I can see the credit in the "Deductions&Credits" section, but it is absent from the refund summary. Am I right to assume that the TurboTax system is treating this credit as "non-refundable"?

Appreciate the assist. Thanks!

M

MayaD

Please confirm that you answered Yes to the question "Did you or your spouse have a principal place of residence in the U.S for more than half of 2021?" in the Child and Dependent Care Credit section.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

G

gilmelanthonyAuthor

Confirming that we did answer "Yes" to the question: "Did you or your spouse have a principal place of residence in the U.S for more than half of 2021?"

Thanks.

G

gilmelanthonyAuthorAnswer

Hi @MayaD I can confirm we have answered Yes for both Married filing jointly, as well as the principal place of residence being in the US.

But I think I have figured this out. I removed the Dependent care credit and compared the refund summary. And the difference is that the system was not counting the Dependent Care Credit as a line item under credits. Rather it appears to have applied the credit as a reduction to our overall tax liability, not as a separate line item so there is no note of it being included in the summary. But I know it was added because the reduction amount matches the amount of the credit from the Deductions & Credits form.

This credit is hard to identify in the refund summary unless you do a before and after comparison when adding this credit. Easy to miss.

But I can confirm it is being counted, just not where I expected to find it.

Thanks!