Skip to main content
Level 1
April 19, 2023
Solved

How do you not received credit for child care expenses if you’ve paid for child care?

  • April 19, 2023
  • 2 replies
  • 7 views
No text available
Best answer by DawnC

Expert Reviewed

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

 

  • You (and your spouse, if filing jointly) must have earned income 
    • The earned income requirement for one spouse is waived if they were a full-time student or disabled (if they lived with the other spouse for more than 6 months in 2022)
  • You paid caregiving expenses so that you (and your spouse, if filing jointly) could work or look for work
    • The work/look for work requirement for one spouse is waived if they were a full-time student or disabled (if they lived with the other spouse for more than 6 months in 2022)
  • You paid a caregiver to care for a Qualifying Person. The caregiver can't 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)

Go all the way through the credit interview.   You have to enter total expenses by child and then by provider.   Make sure you and your spouse have income entered.  Sometimes all income gets reported to same person.   Double-check your entries.  Also, the credit is not refundable so if you have no tax liability, you can't take the credit.   Finally,  check Form 2441.   

 

Ins and Outs of the Credit

2 replies

Level 15
April 19, 2023

 

You will not get the childcare credit until (unless) you enter income earned from working.   The credit does not work unless you enter your income first.   If you are filing a joint return you must show income for both spouses, or show that one or both of you was a student or disabled.   If you have self-employment income and show a loss you will not get the childcare credit.  You will not get the credit if you are filing married filing separately.  

 

If you have entered all of your income and you have entered your dependent(s) then work on the childcare credit by entering the Tax ID or Social Security number of your childcare provider and enter the amount you paid for the childcare.

 

One of the most common mistakes that messes up the childcare credit for people is listing all of the earned income under only one name on a joint return.  Make very sure that your incomes are listed under each of your names.  It’s pretty easy to check.  Go to the Income section, and click “update” on Wages and Salary.  That will take you to the W-2 Summary.  Do you see income listed under both of your names? 

 

 

 The person receiving the care had to be 12 or under or qualified as mentally or physically disabled. To claim the childcare credit you need to be filing as Head of Household or Married Filing Jointly. (NOT married filing separately)

 

 If your child was born in 2022 make sure you say the child lived with you all year. The credit is a percentage of your expenses based on your AGI (the higher the income, the lower the percentage)  You must provide the Social Security number for each child you are claiming, and the Social Security number or Tax ID for each care provider. 

 

In the case of divorced or never-married parents—only the custodial parent can use the childcare credit.

 

 

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.

 

https://ttlc.intuit.com/questions/1900643-what-is-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.**
DawnC
DawnCAnswer
Level 15
April 19, 2023

Expert Reviewed

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

 

  • You (and your spouse, if filing jointly) must have earned income 
    • The earned income requirement for one spouse is waived if they were a full-time student or disabled (if they lived with the other spouse for more than 6 months in 2022)
  • You paid caregiving expenses so that you (and your spouse, if filing jointly) could work or look for work
    • The work/look for work requirement for one spouse is waived if they were a full-time student or disabled (if they lived with the other spouse for more than 6 months in 2022)
  • You paid a caregiver to care for a Qualifying Person. The caregiver can't 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)

Go all the way through the credit interview.   You have to enter total expenses by child and then by provider.   Make sure you and your spouse have income entered.  Sometimes all income gets reported to same person.   Double-check your entries.  Also, the credit is not refundable so if you have no tax liability, you can't take the credit.   Finally,  check Form 2441.   

 

Ins and Outs of the Credit

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