DawnC
Expert Alumni

Self employed

Profits from Schedule C are considered earned income for purposes of the credit.  A net loss from self-employment reduces earned income.  Here are the the requirements for the Dependent Care Credit -

 

  • 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 2024).
  • 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 2024).
  • 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 2024, even if not your dependent.
    • The parent of the Qualifying Person, if the Qualifying Person is your child under the age of 13 during 2024.
  • 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).
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"