Child and dependent care credit

[Carlhjr]

While doing my daughters taxes, it says she qualifies for $548 back in child care (she spent $3662) i understand this is a percentage based off her income but while it shows the $548 as a credit it doesn't apply to what she is getting back. It also says "start" instead of update when you go through the different deductions and credits...i have even went all the way through and stopped just before e-filing and that amount does not add in the her refund....is turbo tax slow on an update or something? i have never had this issue in the past

[Vanessa A]

The Child and Dependent credit is a non refundable credit so if you are seeing that she qualifies, but then you see no change in the refund, she probably does not have a tax liability for the credit to be deducted from.  If you do not have a tax liability, you will not see a benefit from the credit. This means, if you were already getting a full refund of everything you paid in, you would not be eligible for the credit. 

You can see your tax liability on line 16.  You may also have other non refundable credits that already reduced your tax liability.  

TO see your 1040 select the following:  Tools>>Tax Tools>>View Tax Summary>>Preview My 1040

[Carlhjr]

This isn't the child tax credit i am talking about, i understand that part....i am talking about money paid for child care (daycare)...it seems as though there may be a glitch in their software? Normally anything completed says "update" beside it once it is completed...this is completed, states the amount of credit to be received but says "start"

[CatinaT1]

It's possible you don't have any tax to offset, and that's why it doesn't change the refund. The child and dependent care tax credit is nonrefundable, which means the credit cannot reduce your tax any further if it is already zero.  

 You can check to be sure that is what is happening by viewing your Tax Summary.   Here is how to do that:   

1. Log in to your tax return 
2. Click on Tax Tools on the left side of the screen (you may need to click on Continue in the center first).   
3. Click on Tools.   
4. In the box that pops up in the center, click on View Tax Summary.   

If you see a  0  for Total Tax, then that is the reason you don't qualify for this particular credit.