Will not let me enter dependent care

Forum|Forum|4 years ago
February 13, 2022
2 replies
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When I get to "entering dependent care credit" turbotax asks me if either my spouse or I are a student, or disabled, then simply goes back to the tax break menu with a zero on the line for 2021. We both earned income, and should qualify

TurboTax Premier Online

Best answer by ColeenD3

Make sure that both W-2s are entered and that they are entered under the correct name. The IRS bases the credit on the income of the lowest-earning spouse.

If one of you is self-employed and had no profit, the credit will be based on $0.

rjs

Employee

Have you entered all of your W-2s? You cannot enter dependent care expenses until you have entered the W-2s for both of you.

Check that you selected the correct person that each W-2 belongs to. If you selected the same person for both W-2s, it looks like the other person has no earned income.

Kenh20

My daughter is filing married but separated. She has two children and we can’t put her day care in. He files his own taxes so I wouldn’t think she could put his w2 on her taxes.

DianeW777

No, you would not put his W-2 on her taxes if they are filing separately. If they live together, it would seem to be more advantageous to file jointly. However, if your daughter is filing separately, then she would open a new TurboTax account to file her separate return. Both returns would require the social security number (SSN) of the other spouse.

Generally it's better to file jointly because the tax rate climbs more rapidly using married filing separately.

State tax laws can also dictate your required filing status and/or income required to be reported on each spouse's return.

The following link will get you started in the right direction based on your specific situation. Be sure to review any hyperlinks that might pertain to you.

Is it better for a married couple to file jointly or separately?

Whatever the final decision you can use the link below to enter the self employment. Be sure to use the business code 624410 so that TurboTax knows it's a daycare/childcare business.

IRS Publication 587 (review the Daycare sections to be sure you see everything you can use)
Home Office Deduction
How do I report income from self-employment?

@Kenh20

[Edited: 02/05/2024 | 6:25 AM PST]

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ColeenD3Answer

Make sure that both W-2s are entered and that they are entered under the correct name. The IRS bases the credit on the income of the lowest-earning spouse.

If one of you is self-employed and had no profit, the credit will be based on $0.