JulieS
Expert Alumni

Deductions & credits

Yes, your Schedule C loss could make you ineligible for the Child and Dependent Care Credit. 

 

The IRS bases the credit on the income of the lowest-earning spouse. If your business loss is more than your wages on W2, your income would be $0. That would limit your credit to $0.

 

If your business loss is not greater than your wages, check your W2 forms.

 

As @ColleenD suggests above, check that your W-2s are entered and that they are entered under the correct name.

 

 

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