Business Income not showing up as Earned Income for Form 2441 purposes

[rssr1991]

Hello,

We have business income due to my husband's business as a sole proprietor and are trying to deduct our childcare expenses, but it says we have no earned income.  I understand that income from sole proprietorship qualifies as earned income. The business had income and we do owe taxes. Going to schedule C shows my husband as business owner. How do we get a deduction for the child and dependent care expenses?

Thank you!

[MarilynG1 · Accepted solution]

You are correct that self-employment income is qualified income for the Child and Dependent Care Credit.

There are other reasons why you may not be receiving the credit.

Click this link for more info on Why am I not Receiving a Child Care Credit.

[wizkid]

I'm having the exact same problem. I agree there could be some other reason that you wouldn't be eligible - but the reason TurboTax is giving is not accurate... and I also don't think there is any other reason we wouldn't be able to claim it.