Skip to main content
Level 1
June 1, 2019
Solved

Child care and self employment

  • June 1, 2019
  • 2 replies
  • 22 views
The personal deduction portion is saying I can not count child care expenses because one of us does not have earned income. My husbands income is in the business portion. How can I fix this?
Best answer by null725
To qualify for the child tax credit, both of you must have earned income. That can be from wages, or from net profit from a business. Income from a business is not enough, there must be a net profit to qualify. If the business has a net loss, then the person owning the business has no earned income for purposes of the child tax credit.

2 replies

Lisa995
Alumni - Champ
Alumni - Champ
June 1, 2019
Does he have a net profit on his Self Employment business?  If he has a loss, child care credit wont be calculated.
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
null725Answer
Level 13
June 1, 2019
To qualify for the child tax credit, both of you must have earned income. That can be from wages, or from net profit from a business. Income from a business is not enough, there must be a net profit to qualify. If the business has a net loss, then the person owning the business has no earned income for purposes of the child tax credit.