topic Figuring our Childcare Credit in Deductions & credits

Figuring our Childcare Credit

SC715 — Tue, 10 Feb 2026 08:56:43 GMT

I keep getting that I do not qualify for the childcare credit

Filing Jointly

My wife works and receives a W2

I'm self employed with 1099 NEC

We both check off the qualifications of having income, under $400k, 1 child and paid for childcare (over 13k)

When going through I keep getting does not qualify...

Re: Figuring our Childcare Credit

VolvoGirl — Wed, 31 Jan 2024 18:58:53 GMT

Is there a message why? Like does it say you need to be disabled, etc? Do you have a Net Profit on your Schedule C self employment? Be sure to enter the W2 and Schedule C under the right spouse. How old is your child?

Re: Figuring our Childcare Credit

SC715 — Wed, 31 Jan 2024 19:00:47 GMT

It was a net loss for the business (in year 2) but that didn't matter last year.

It doesn't say why we don't qualify

It's under the correct spouse

Child is 2

Re: Figuring our Childcare Credit

Opus 17 — Wed, 31 Jan 2024 19:05:32 GMT

@SC715 wrote:

It was a net loss for the business (in year 2) but that didn't matter last year.

It doesn't say why we don't qualify

It's under the correct spouse

Child is 2

Although your expenses are "qualified" because you both work, the dollar amount of the credit is based on the earned income of the lower-earning spouse. If your business shows a loss and you don't have income subject to SE tax on schedule SE, then you aren't eligible. Sorry.