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Dependent care credit: does earned income need to be in same month as dependent care expense?

We paid a nanny for Jan through May 2018.

For the whole year I worked on a new business where I do not have profits yet and hence no earned income from it. For some months (after May) I did have W2 income from a different source. My spouse was working full time for the entire year and has earned income from her work.

Can we claim dependent care credit? The rule only says I need to have earned income and the nanny should have been hired to allow me to work. 

But my earned income was not in the same months as we paid the nanny. Does that prevent me from claiming dependent care credit? I ask because if I did not have W2 income, just working on my business is not enough to claim the credit even though the nanny was hired to let me work on my business.

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Level 9

Dependent care credit: does earned income need to be in same month as dependent care expense?

You just need to have Earned Income to qualify for the Child Care Credit.  It doesn't matter about which months, etc.

Since you had W-2 income, you are eligible to claim the credit.

You are correct that if you had no Self-Employment Income, you would not be eligible for the credit (unless you were a full-time student or disabled).

Here's more info:

https://ttlc.intuit.com/replies/3301418

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1 Reply
Highlighted
Level 9

Dependent care credit: does earned income need to be in same month as dependent care expense?

You just need to have Earned Income to qualify for the Child Care Credit.  It doesn't matter about which months, etc.

Since you had W-2 income, you are eligible to claim the credit.

You are correct that if you had no Self-Employment Income, you would not be eligible for the credit (unless you were a full-time student or disabled).

Here's more info:

https://ttlc.intuit.com/replies/3301418

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post