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New Member
posted Jun 3, 2019 4:52:39 PM

Earned Income is not being counted towards the Child and Dependent Care credit requirement.

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1 Replies
Expert Alumni
Jun 3, 2019 4:52:40 PM

What kind of Earned Income is this?

The income must be earned income to qualify for the child and dependent care credit.  If this income is on a K-1:

If  the K-1 is from a partnership (Form 1065), it will count as earned income if there is an entry in box 14 with code A net earnings from self-employment. 

If this K-1 is from an S corporation (Form 1120S), then the corporation must have issued a W-2 as an employee for you to have earned income.