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Level 1
January 31, 2023
Question

Why dont i get chidcare credit

  • January 31, 2023
  • 2 replies
  • 10 views
why cant I get childcare credit

2 replies

Level 15
February 1, 2023

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number.    Careful— do not say that your child’s SSN is not valid for employment.  If your child was born in 2022 make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.

 

 

 

You will not get the childcare credit until (unless) you enter income earned from working.   The credit does not work unless you enter your income first.   If you are filing a joint return you must show income for both spouses, or show that one or both of you was a student or disabled.   If you have self-employment income and show a loss you will not get the childcare credit.  You will not get the credit if you are filing married filing separately.  

 

If you have entered all of your income and you have entered your dependent(s) then work on the childcare credit by entering the Tax ID or Social Security number of your childcare provider and enter the amount you paid for the childcare.

 

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? 

 

 

 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)

 

 If your child was born in 2022 make sure you say the child lived with you all year. The credit is a percentage of your expenses based on your AGI (the higher the income, the lower the percentage)  You must provide the Social Security number for each child you are claiming, and the Social Security number or Tax ID for each care provider. 

 

In the case of divorced or never-married parents—only the custodial parent can use the childcare credit.

 

 

And remember that the childcare credit is a NON-refundable credit.  It can reduce your tax owed down to zero, but it is not added to your refund.

 

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

**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.**
Level 15
February 1, 2023

In order to claim the Child and Dependent Care Credit you must meet the following:

  • You and your spouse (if married) must have earned income from a job or were using the child care to look for a job
  • You must file a joint return if married
  • It is a nonrefundable credit so you must have a tax liability in order to benefit from the credit
  • You must have paid for child care to someone other than your spouse, the child's other parent or someone claimed as a dependent on your return.

If you meet all of the above, be sure you enter your W2 prior to going to the Child and Dependent Care Credit.

 

Now, if you are talking about the Child Tax Credit and not the Child and Dependent Care Credit, the rules reverted to 2020 rules.  This means you must have earned income to claim the credit

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