Should a loss from self employment disqualify us for child care tax credit event though we both had W2s?

[spgallo]

When I enter my wife's personal home business the loss is greater than the income from her w2 substitute teaching. When I enter the business info it wipes out all the info I entered for child dependent care tax credit and won't let me add it back claiming I don't qualify. The personal income in Turbo Tax show an earned income for both of us.

 I found something in IRS tax publication 503 page 5 "a net loss from self-employment reduces earned income".  Then on page 11 it says "the amount of work related expenses you use to figure your credit cannot be more than ...the smaller of your spouse's earned income.."  So is it possible for her loss from self employment is negating her earnings from substitute teaching disqualifying us from child care tax credit?  Seems the W2 should stand on its own.  

[jerry2000]

The W-2 income does not stand on its own. Both must have positive earned income to qualify for the child and dependent care credit and business/self-employment loss subtracts from W-2 income.The complete rules are in IRS Pub. 503.