Pre-school tuition

We are self employed 50/50 husband and wife. Business made no money, in the negative. Wife also works fulltime and received a w2. we have custody of a child that we paid pre-school tuition for (day care provided a tax form). when I go to the child dependent care section, it never shows where to enter day care expenses. Is this because the business made no money - has no "earned income" ?

993

Level 15

Mar 14, 2023 9:53:36 AM

If you are self-employed but show a loss, you will not be able to get the childcare credit. When you file a joint return and use the childcare credit --there must be earned income shown for both parents--unless one of the parents is a student or is disabled.

Level 2

Mar 14, 2023 10:08:28 AM

Thank you for replying. Would it then be best to not file a negative business return (loss was 9k) no income. and only file Home with me (w2) and my husband and child?

Level 15

Mar 14, 2023 10:10:09 AM

No----that would not change anything since you still would not be able to show earned income for the other parent. Sorry.

Level 2

Mar 14, 2023 10:18:29 AM

Thank you so much for your help

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Pre-school tuition