Can I take a child care credit if all of my income is under the 'foreign earned income' category? The system says that I am ineligible because I have no 'earned income'!?

SouthPacific · ‎June 6, 2019

I had a salary, but it was wholly earned overseas as I am living and working abroad.

SweetieJean · ‎June 6, 2019

To claim the credit, you (and your spouse if filing jointly) must have earned income during the year.

Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. A net loss from self-employment reduces earned income. Earned income also includes strike benefits and any disability pay you report as wages.

Generally, only taxable compensation is included. Foreign earned income you exclude from income isn't included.

https://www.irs.gov/publications/p503/ar02.html

View solution in original post

SweetieJean · ‎June 6, 2019

To claim the credit, you (and your spouse if filing jointly) must have earned income during the year.

Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. A net loss from self-employment reduces earned income. Earned income also includes strike benefits and any disability pay you report as wages.

Generally, only taxable compensation is included. Foreign earned income you exclude from income isn't included.

https://www.irs.gov/publications/p503/ar02.html

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Can I take a child care credit if all of my income is under the 'foreign earned income' category? The system says that I am ineligible because I have no 'earned income'!?