Nothing has changed, but I'm not able to claim the childcare and dependent tax credit for 2023?

[Keelyhuckstep]

We're filing as married/jointly, and I'm doing my 2023 taxes VERY late (January 2025), but we should not owe anything, because we never do (we ALWAYS receive a decent return), so I'm not worried about fees/fines.  Since we are so late I'm having to use the TurboTax desktop software to file (instead of the online filing), which makes asking questions almost impossible.  Our situation is that my husband works ($84k before taxes) and I left my job in 2019, in order to care for our autistic son, so now I don't bring in income.  This is exactly the same as when I filed for 2000, 2021 and 2022. 

The ONLY difference is that I started teaching, part-time, in August 2023 and was hired as a contractor (without benefits of any kind), only making $800 per month.  I received a 1099-NEC for a whopping total of $2,700.  I've entered all of this, appropriately.  I also claimed expenses for my home office, business expenses, etc.

Like I mentioned, this is the ONLY difference between 2023 and every year since 2000 (after I left employment).    I've been eligible and able to claim the Child and Dependent care credit every year, but it's telling me now that I'm unable to claim the credit.  It doesn't tell me why, just gives the generic breakdown about what's required to claim the credit.  I've already gone in and made sure that my dependents are entered correctly into TurboTax, showing up as our natural children, both under the age of 17, who no one else can claim.  Everything else is EXACTLY the same as the previous years, with no changes whatsoever to our children's dependent status'.  

This credit is VERY important to us, especially since I left my full-time job.  Does anyone know what I might be doing wrong or have any ideas for what I need to change in order to claim this credit?  If I need to delete my business expenses, I will do that, no big deal (I think the business expenses came to about $2800 total, to turn my basement into a home office, purchase a decent PC, etc.), but if this is throwing off my Child Care credit for some reason, then I can delete those expenses.

I appreciate anyone who has any insight (or even just guesses).

Thank you!

[xmasbaby0]

When you have self-employment income---which is what you say you had---- if your business shows a loss, you will not get the childcare credit.  You mention earning $2700 from the teaching job and having $2800 of expenses---so you are showing a loss.  That is why you are not getting the childcare credit.

[xmasbaby0]

Further.....you say that you received the childcare credit for several past tax years when you did not work.   I wonder if you are confusing the childcare credit with the child tax credit.    Unless you said you were a student, or said that you were disabled, not sure how you managed to get the childcare credit.   You have to show positive income from both parents, or show that you were a student or that you were disabled.  

The childcare credit you get is going to be based on the lower of the two incomes entered for the parents---so your childcare credit will be low if your income was low.

And remember that the childcare credit is a NON-refundable credit.  It can reduce your tax owed down to zero, but it is not added to your refund.

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

https://www.irs.gov/help/ita/am-i-eligible-to-claim-the-child-and-dependent-care-credit

[xmasbaby0]

Just in case you are confusing the childcare credit (for paying someone to take care of your child while you work) with the child tax credit---some information on the child tax credit:

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number.    Careful— do not say that your child’s SSN is not valid for employment.  If your child was born in 2023 make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.

  The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1700.   In order to get that credit, you have to have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1700 per child. If the amount you earned was too low, you will not get the full $1700.

 If your child is older than 16 at the end of 2024, you do not get the CTC.  But you may still get the non-refundable $500 credit for other dependents instead.

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/additional-child-tax-credit/L6x...

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...

Look at your 2024 Form 1040 to see the child-related credits you received

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

[rjs]

You mentioned that your children are both under 17 years old. That's the age limit for the child tax credit. For the child care credit the child must be under 13.

You also said that you care for your son. You did not mention paying anyone else to care for either child. The child care credit is for paying someone to care for the child while you work, not for caring for the child yourself.

You said there were at least three years, 2020, 2021, and 2022, when you did not work. If you got the child care credit when you were not working, you had to have lied on your tax return.

So I join with xmasbaby0 in wondering whether the credit you got in past years was the child tax credit, not the child care credit.