child and dependent care credit not qualifying error

[srtaylor1317]

My wife does not have W-2 income, and so turbotax is not allowing the child and dependent care credit. However, the IRS rules (https://www.irs.gov/taxtopics/tc602) state clearly that this credit is available to those with earned income or are actively looking for work. My wife is actively looking for work--how do I tell this to Turbotax?

[xmasbaby0 · Accepted solution]

Sorry-----the catch to claiming the childcare credit is that your spouse has to actually FIND a job and earn some income from it.   Merely looking for a job is not enough.   When you file a joint return you both have to show income earned from working or you will not get the childcare credit.  The exception would be if your spouse is disabled or is a full-time student.   If one or both of you is self-employed, you will not get the childcare credit if you show a loss.