JamesG1
Expert Alumni

Deductions & credits

Each partner in a married filing jointly tax return must have positive earned income.  What are the numbers for your incomes and what is the nature of the income from the two businesses? 

 

I suspect that the LLC loss is reducing your individual earned income to $0 or less and disqualifying your tax return from claiming the Child and Dependent Care Credit.

 

IRS Form 2441 Instructions page 1 states:

 

Purpose of Form

 

You (and your spouse if filing jointly) must have earned income to take the credit or exclude dependent care benefits from your income.

 

[Edited 3/20/2022 6:31 AM PST]

@JakeG 

 

 

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