Each Spouse must have at least $500 of qualifying income to get the credit. But then any schedule A deductions must be subtracted from each spouse’s income to see if you each still have $500. In addition any Federal adjustments must be subtracted. A common example is an IRA deduction. Let's say the wife had $1500 of wages and put $1200 in her traditional (deductible) IRA. She would only have $300 of net qualifying income and the couple would not get any JFC.
Did you have any of the following:
-medical expenses exceeding 7-1/2% of AGI
-IRA deductions
-student loan interest deduction
-1/2 self employment tax deduction
-educator expense deduction
-alimony deduction
-529 plan contributions
-out of state military pay
-Business income deduction
-any other adjustments on Ohio sch A
If so, and those items were deducted from your qualifying income, that income may be reduced to less than $500.
