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Level 1
posted Jan 24, 2022 10:37:18 AM

Child and Dependent Care Tax Credit: is anyone else experiencing TT disqualifying you from this credit when according to TT help you DO qualify?

My spouse and I both work and we paid for childcare all year - we also utilized the increased Dependent Care FSA benefit ($10,500). Our childcare costs were in excess of this by approx $6k, we have an AGI under $125k. Why is TT saying we don't qualify?

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1 Replies
Expert Alumni
Jan 24, 2022 11:27:17 AM

There is a dollar limit of $8,000 in dependent care benefits per qualifying child. A qualifying person for the Child and Dependent Care credit must be under the age of 13 or unable to care for oneself. 

 

If you only had one qualifying person, you would not get any credit since you received more than $8,000 in pre-tax dollars through the FSA benefits from your jobs. 

 

For more information on this topic, please see the Child and Dependent Care tax topic on the IRS website