Deductions & credits

You are working on a 2018 return?  Are you using 2018 software?  You cannot use the online program.  Online is only for 2019.  If you are in the wrong software, STOP.  If you are correctly using 2018 desktop software--great--you are okay.

 

The childcare credit is non-refundable.  It is a credit that is applied against your tax liability.

 

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?

 

A few other things—the childcare credit is not a refund.  It can reduce your taxes owed.  If you were self-employed, but showed a loss, you will not receive the credit.

 

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)

 

Look at your 2018 tax return to see the child-related /dependent credits you received:

Child tax credit line 12a

Additional Child Tax Credit line 17b   (schedule 8812)

Credit for Other Dependents line 12a

Earned Income Credit (EIC) line 17a

Child and Dependent Care Credit line 12     (comes from Schedule 3 Form 2441)

 

The dependents you listed are on the first page of your Form 1040 below your address.

 

**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.**