Child and Dependent Care Credit Not Showing in Federal Review

I am able to enter a Child and Dependent Care Credit in TurboTax Premier and pass Review.

 

Are you able to view the Federal 1040 tax return at Tax Tools / Print Center?

 

Are you able to view the Federal 2441 and see whether a credit was generated on line 10? Is there an entry on line 11?

Is there a page 2 to the Federal 2441?

 

Did the credit transfer to line 13g of Federal 1040 Schedule 3 Additional Credits and Payments?

 

Did the credit transfer to the Federal 1040 tax return on line 31?

 

Please clarify. Thank you.

 

See also this TurboTax Help.

 

 

Thanks for your response, the credit was applied correctly in Form 2441 and transferred onto the 1040. For some reason, in the "explain why" section after the federal review is completed, it shows the Child and Dependent Care Credit as $0. There must be a bug for this explanation section of the federal review page. 

When I ran an example, I did not have a Review error so I am unclear what the Federal Review message was referring to.

 

It sounds like you received proper credit on the Federal 1040 but the Review message is confusing.

 

Please clarify.

 

 

It's not an error message. After the review is completed and accepted, there is an "explain why" section beneath the estimated federal return. In this section, it shows that my dependent care credit is $0 when it is not $0 on the actual forms.

I'm seeing this behavior as well. The Federal Review section is listing $0 for Child Dependent Care Credit, however, I am finding it correct on the 1040 itself.

Agree with this issue. It is clearly a UX issue mis representing the information. It does factor in the overall dues but in the "Review" section , it doesn't show the dependent care credit. Pls report this to your IT department. 

We would like to look into this further. Please follow the instructions here to contact us by phone. 

I am having the same issue and no one on the phone was able to help. I want to know my taxes are accurate before filing and I can't seem to review the forms until l file. 

You can view parts or all of your tax return prior to filing it. Your Child and dependent Care Credit is partially refundable, so the credit is split into two parts, refundable and non-refundable.

 

One possible explanation for why you are seeing $0 on the summary is that you have $0, for one part of the credit, but you have a higher value for the other part.

 

If you are using TurboTax online, you can check your 1040, even if you have not finished yet:

1. On the left side menu, select  Tax Tools near the bottom.
2. Select Tools.
3. Select View Tax Summary from the list at the bottom of this box.
4. Select Preview my 1040 from the center of the left side menu.

Using this method you can see the total amount of Child Tax Credit on Schedule 3, line 2 and 13g.

 

If you are using TurboTax Desktop (disc or download):

1. Select the Forms icon in the upper right corner.
2. Highlight Form 2441 from the list on the left.
3. Your credit will be on line 10 and 11.

[Edited 04/07/22 | 8:06 PST}

 

This post and issue isn't about the child tax credit. This is about the dependent care credit. I'm not having issues with the child tax credit.

I am referring to the Child Care Credit too, I just tagged it wrong. @lindsea22

 

Mine is doing this exact thing! Man, there have been so many bugs in turbotax this year....so frustrating because you call in and spend an hour or more on the phone just to find out that no one can fix it.  

Mine is doing this too. 4 dependents and it shows 0 for child tax credit. First year this has ever happened. Turbotax what is the issue?

If you are reporting $0, your dependents are not qualifying children or the advance payments have offset the Child Tax Credit.

 

For tax year 2021, a qualifying child is an individual who does not turn 18 before January 1, 2022, and who satisfies the following conditions:

• The individual is the taxpayer’s son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew).
• The individual does not provide more than one-half of his or her own support during 2021.
• The individual lives with the taxpayer for more than one-half of tax year 2021.
• The individual is properly claimed as the taxpayer’s dependent.
• The individual does not file a joint return with the individual’s spouse for tax year 2021 or files it only to claim a refund of withheld income tax or estimated tax paid.
• The individual was a U.S. citizen, U.S. national, or U.S. resident alien.

The Child Tax Credit reported on line 28 of the Federal 1040 tax return is computed in two steps: 

 

• First, you are given full credit for the Child Tax Credit based upon your 2021 income and the dependent information entered into your tax return, then 
• Second, the benefit of the credit is reduced by the amount of any advance payments reported under Federal / Deductions & Credits / Your tax breaks / Advance payments, Child and Other Dependent Tax Credits at the screen Tell us about any Advance Child Tax Credit payments.

You are able to view the Child Tax Credit on line 28 of the Federal 1040 under Tax Tools / Tools / View Tax Summary / Preview my 1040 after each step.

 

Enter the information to generate the Child Tax Credit, then review line 28 of the Federal 1040 to see whether you have been given credit for the proper amount.

 

Then report the Advance Child Tax Credit payments received and reported on your IRS Letter 6419.

 

Review line 28 of the Federal 1040 to see whether you have been given credit for the proper amount.

 

This way you will be able to tell which step (if either) is incorrectly being reported on line 28 of the Federal 1040.

 

@giannak215

You seem like you don’t know what you are talking about.  I am not trying to be mean, but if you don’t know just say so.  Because, people are counting on their tax refund money.

@TaxexpertIRL You added to a thread that has had no activity since April of 2022 when people were asking about 2021 returns. 

 

 The child tax credit has changed drastically for 2022 tax returns.   In case you are not aware of the changes:

 

 if you did not work in 2022, you will not receive an income tax refund based on having dependent children.

 

The rules for getting the child tax credit on a 2021 tax return and now on a 2022 return are very different.  For 2021 you could get $3600 for a child under 6 or $3000 for a child between 6 and 17 even if you had no income/did not work.   That is NOT the way it will work for your 2022 tax return.  The “old” rules are back.   The maximum amount of the child tax credit is now $2000; the refundable “additional child tax credit” amount is $1500.   In order to get that credit, you have to have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1500.  If your child is older than 16 at the end of 2022, you do not get the CTC.  But you may still get the non-refundable $500 credit for other dependents instead.

 

 

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-for-other-dependents

 

 

 

And for the Earned Income Credit—-the rules are back to the “old” rules—

Those under 25 and over 65 without children are not eligible as they were uniquely in 2021.   And you cannot use your income from any earlier tax year to get the EIC for a 2022 return.  There is no “lookback” for 2022.  EIC for 2022 will be based on the income you earned by working in 2022.

 

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-eic-or-eitc

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

 

 

 

Look at your 2022 Form 1040 to see the child-related credits you received

 

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

 

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

In reference to the dependent care credit for 2022 tax return will a parent need to be working and obtaining a w2 to get the credit or does self employed Schedule C apply. Im currently doing my taxes and its not applying the depended care credit when I worked but as self employed. 

@jjaden The childcare credit is available to W-2 employees or to those who are self-employed...BUT if you are self-employed you will not get the childcare credit if you show a loss.

Thats so strange because its saying I don't qualify for the dependent care credit however I have a profit from my business. 

The credit is non-refundable.....it is not added to your refund.  It can only reduce your tax owed.  And ....what is your filing status?  If you are married filing separately you cannot get the childcare credit.   or...if you are not the custodial parent you cannot get the childcare credit.

 

 

You will not get the childcare credit until (unless) you enter income earned from working.   The credit does not work unless you enter your income first.   If you are filing a joint return you must show income for both spouses, or show that one or both of you was a student or disabled.   If you have self-employment income and show a loss you will not get the childcare credit.  You will not get the credit if you are filing married filing separately.  

 

If you have entered all of your income and you have entered your dependent(s) then work on the childcare credit by entering the Tax ID or Social Security number of your childcare provider and enter the amount you paid for the childcare.

 

One of the most common mistakes that messes up the childcare credit for people is listing all of the earned income under only one name on a joint return.  Make very sure that your incomes are listed under each of your names.  It’s pretty easy to check.  Go to the Income section, and click “update” on Wages and Salary.  That will take you to the W-2 Summary.  Do you see income listed under both of your names? 

 

 

 The person receiving the care had to be 12 or under or qualified as mentally or physically disabled. To claim the childcare credit you need to be filing as Head of Household or Married Filing Jointly. (NOT married filing separately)

 

 If your child was born in 2022 make sure you say the child lived with you all year. The credit is a percentage of your expenses based on your AGI (the higher the income, the lower the percentage)  You must provide the Social Security number for each child you are claiming, and the Social Security number or Tax ID for each care provider. 

 

In the case of divorced or never-married parents—only the custodial parent can use the childcare credit.

 

 

And remember that the childcare credit is a NON-refundable credit.  It can reduce your tax owed down to zero, but it is not added to your refund.

 

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

Im filing head of household single with 1 dependent child age (5) I have majority of my income in self employment and only a small percentage from a w2. When I get to the end it only says "it turns out you don't qualify for this credit"

I should still qualify for the credit. I worked on all my income first

 

Do you have any tax due?   Is there an amount on line 37 of your Form 1040

 

PREVIEW 1040

 

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

     

When I preview it doesn't state line 37. Would it be amount due?

if you have federal tax due it would be on line 37.   If that line is blank you do not owe tax.  You will not get the childcare credit if you do not owe any tax.