I paid for child care in 2020. I posted all information (total tuition plus EIN for the center) & Turbotax states that I do not qualify for this credit. Help?

[xmasbaby0]

CHILD AND DEPENDENT CARE CREDIT

One of the most common mistakes that messes up the childcare credit for people is listing all of the earned income under only one name on a joint return.  Make very sure that your incomes are listed under each of your names.  It’s pretty easy to check.  Go to the Income section, and click “update” on Wages and Salary.  That will take you to the W-2 Summary.  Do you see income listed under both of your names?

A few other things—the childcare credit is not a refund.  It can reduce your taxes owed.  If you were self-employed, but showed a loss, you will not receive the credit.

The person receiving the care had to be 12 or under or qualified as mentally or physically disabled. To claim the childcare credit you need to be filing as Head of Household or Married Filing Jointly. (NOT married filing separately)

If your child was born in 2020 make sure you say the child lived with you all year. The credit is a percentage of your expenses based on your AGI (the higher the income, the lower the percentage)  You must provide the Social Security number for each child you are claiming, and the Social Security number or Tax ID for each care provider.  You can claim a maximum of $6000 in expenses for 2 or more dependents.

In the case of divorced or never-married parents—only the custodial parent can use the childcare credit.

[stefaneisarratt]

I have completed or confirmed all of these things.

[JoannaB2]

It depends, as you must meet all the requirements to qualify for the credit. The requirements are as follows:

1. You must have earned income. 
2. Must have qualifying child under 13 years old or physically and mentally unable to self-care.
3. Must provide qualified caregiver's SSN or EIN, name, & address.
4. Maximum expenses allowed for 2020 is $ 3,000 per child up to $ 6,0000 (2 or more children).

Please see this link for Child and Dependent Care Credit.

[stefaneisarratt]

Yes, all of the following are verified. I have confirmed that we meet criteria (we did last year as well).  When I enter the information, it states that I do not qualify because I have not entered any expenses yet, even though I have. 

[BillM223]

There are two places to enter the expenses. The first is for each child; the second is to each child care center. 

Please run through the Child and Dependent Care interview again and ensure that you made entries both for the child(ren) and the care givers.

[Cobia7671]

How do I correct my caregivers social security after I’ve already filed and been accepted? It auto filled her social when I did my taxes but when she finally confirmed the social with me she advised the one TT entered was NOT correct.  I need to go into my return and correct it….or is it a huge problem? Should I just leave it since it’s already been accepted? 

[BrittanyS]

 If the IRS accepted your 2022 return, you would have to amend your return to correct the invalid SSN.  You will not want to make any changes or adjustments to the return while it is pending.  The IRS will first have to accept or reject the return.  To prevent a delay to your refund, it is best to wait to amend it until your refund is received.

If your return is accepted, you will need to follow the following steps in TurboTax to amend the return:

1. Sign in to TurboTax
2. On the home screen, scroll down to Your tax returns & documents and select the year you want to amend
3. Select Amend (change) return, then Amend using TurboTax Online
   • If you're told to amend your return via TurboTax Desktop, follow the steps for TurboTax CD/Download below instead
4. On the screen OK, let's get a kickstart on your amended return, select the reason(s) you're amending and Continue
5. When you reach Here's the info for your amended federal return, select Start next to the info you need to change
6. Continue through the screens, make the changes you need to make, and carefully answer the remaining questions to finish amending your return

For more information on amending returns, see the link below:

How do I amend my federal tax return?

@Cobia7671

[Cobia7671]

Thanks @BrittanyS  for responding so quickly, even though I’m finally getting around to reading the responses.  I don’t know if I understand what you’re suggesting I do though……my return has been ACCEPTED. I’m currently in the waiting game of “Let’s start processing the returns with the EITC” phase.  Are you saying wait until I receive my refund THEN go into TT and amend the caregivers social? I have zero problem with that I just need clarification if that’s your advice please.   It’s nerve wracking enough to sit and wait for the EITC returns to begin being processed but to also not know how to handle my mistake. Also, I have another question maybe you can help me with…..when I go to  the IRS. Where’s My Refund” app I type in all the pertinent info and typically it comes up with everyone’s favorite 3 section bars: Return Received, Return Approved, and Refund Sent.  Well mine doesn’t have bars, it comes up with:       

“According to the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue refunds before mid-February for tax returns that claim the Earned Income Tax Credit or the Additional Child Tax Credit. This applies to the entire refund, even the portion not associated with these credits. Check Where's My Refund in mid- to late February for your personalized refund status. It's updated once a day and remains the best way to check the status of your refund.

Please read the following information related to your tax situation:
Tax Topic 152, Refund Information

Please Note: For refund information, please continue to check here, or visit the Refunds page on IRS.gov. Updates to refund status are made no more than once a day.”   

YET!! My when my son logs in , literally on same phone, with his info he HAS bars!!

Is there any significance there or is it just some are given A screen and some are given B screen?   

I appreciate your help….and the fact you read all of my post.  🥴😬😉

[MarilynG1]

Does your son have EITC or CTC on his return?  If not, that's why he gets B screen and everyone with EITC or CTC gets A screen.

Because the EITC is fully refundable, it's been associated with higher levels of fraud. As such, the Protecting Americans from Tax Hikes (PATH) Act made changes to tax laws that now require the IRS to hold refunds associated with the EITC through mid-February.

Here's more info on EITC Refunds. 

[Cobia7671]

Hey @MarilynG1! Yes, he claims both the EITC and CTC. But he JUST filed last week and I submitted mine Jan 31. Maybe that’s why? 🤷🏼‍♀️

[BrittanyS]

Yes, you should wait until your refund is issued before making any changes to your return.  If you do not, it could cause confusion with the IRS and delay the process of filing and correcting the return.  The IRS is slowly working through the returns with the EICT and the CTC.  There is no logical reason why your son's return may have been processed, and yours has not.  Some returns are just reviewed longer than others.  All electronically filed returns are sent through a validity check and run for errors.  If the IRS finds any during the validity check, it will be rejected and sent back to you to correct.  If this happens, the return will be opened back up in TurboTax for you to make changes.  This would also be an excellent time to correct the childcare provider's SSN.  For now, you should continue to wait and check the status daily on the IRS tracker.  

@Cobia7671