I am filing my 2022 taxes and did NOT get a dependent care FSA in 2022. I entered the amount I've paid for my babysitter in 2022, the tax information, etc and as I move through the TurboTax platform it says "Great News! You qualify for this credit." But, then when I click continue it says "It turns out you don't qualify for this credit." What is going on? Why is it saying that? I have tried to look online and cannot figure out why I don't qualify. TY in advance!
Have you entered income earned from working? If you have not yet entered income from working you will not get the childcare credit. Or...if you file married filing separately you will not get the credit. If you (or your spouse) were self-employed and show a loss, you will not be eligible for the childcare credit. Did you enter a SSN or Tax ID for the childcare provider?
Thank you. Hmmm, I am still stumped. I did enter income from working. I am not married, so that shouldn't apply (her dad doesn't even file US taxes). And, yes I entered the SSN for the provider. Thank you again for your reply.
@Melis3158 wrote:
Thank you. Hmmm, I am still stumped. I did enter income from working. I am not married, so that shouldn't apply (her dad doesn't even file US taxes). And, yes I entered the SSN for the provider. Thank you again for your reply.
Some other things.
The credit is not allowed for married filing separately.
If you are living together unmarried with the other parent, you need to answer the child lived with you all year, and there is no custody agreement with the other parent. (In this case, the word custody agreement only refers to a legal agreement between parents who live apart and share custody, and does not mean an informal agreement between unmarried parents living together.)
If you live apart and share custody but you have custody more than half the year, you must indicate "7 months" or longer in the dependent interview. Turbotax interprets "6 months" to be exactly half the year, and you can't get the credit because you have to have custody more than half the year, and exactly half is not more than half.