Pre-school tuition

[renee9398]

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" ?

[xmasbaby0]

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.

[renee9398]

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?

[xmasbaby0]

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

[renee9398]

Thank you so much for your help