I am having a hard time here. First of my dependent care credit tells me I do not qualify because I didn’t make over $6000. Although I have over $14,000 total earnings between a 1099 misc and a 1099 NEC… However, once clicking continue, it, somehow did allow me to put in the child care information, so I don’t know if I actually am getting it or if this is some kind of side thing.
With that said, I added up the $20,000 or so worth of expenses for childcare and it put me to about $1250 of a deduction. Then when I went back to my miles under self-employment and raised them to the correct number, the child care credit shrunk down to about $200. What is going on? And can someone please tell me if this is a glitch on TurboTax? As far as it telling me that I do not have over 6000 and do not qualify then it actually lets me put all that information in and gives me eight deduction? I sure wish somebody from TurboTax would help me. I have tried every phone number and every email and everything online for three straight days.
To qualify for the Child and Dependent Care credit, you have to have earned income, and net earnings (income minus expenses) from self-employment specifically can reduce the calculation of the credit if they are lower than the maximum credit. TurboTax allows you to input the information in case you still have income to enter on your return and will update the allowable credit as you continue.
The best way to see how the credit is calculated is to review the form and its instructions here.