I read through previous posts, but still confused. I'd really appreciate some help.
My spouse and I are filing married, jointly. We each have w-2s and income entered separately under both of our names as we both work full-time. Total income is way below the limit for the credit. Our child is under 12, lived with us all year, social security number is entered. The amount spent on childcare is ~4K more than the 5K from the flexible spending account for childcare. The childcare provider's information was added fully.
Looking at the tax summary shows line 18-22 on the 1040 as owing Total Tax as greater than zero. Line 2 of schedule 3 is blank since turbotax is saying we don't qualify.
What am I missing?
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Total tax is on line 24. If you see a 0 for Total Tax, then that is the reason you don't qualify for this particular credit.
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:
If you see a 0 for Total Tax, then that is the reason you don't qualify for this particular credit.
Total Tax is greater than zero (by quite a bit) in line 24.
Total Tax is greater than zero (by quite a bit) in line 24.
The child and Dependent Care credit for 2022 is $3000 per qualified child. You can not claim a dependent care credit if you had pre-tax money in your FSA for Dependent Care. You are getting the tax benefit by excluding $5000 from your taxable income.
Thank you for clarifying. I was operating under the assumption that they stacked, like if your total expense was X-5K > 3K then you would still qualify for the credit.
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