Single Mother of one child. Living on Savings and VA Education Benefits. Turbo Tax Won't Let Me Enter Data and Will Not Grant Me ChildCare Expenses????

[wayne_wayt]

Single mother of one child.  Living alone, supporting my child.  Full-Time Student.  Only source of income is savings account and GI Bill Benefits paid monthly.  This is my salary to me.  How do I list this as part of my salary?  The Turbo Tax system also states that I do not qualify for Day Care deductions/credits?  WTH??

[Hal_Al]

"This is my salary to me". It's not salary (earned income) to the IRS. GI bill benefits are tax free and not reportable on your tax return.  You can not list it as salary.

You do not qualify for day care benefits because you have no earned income. Although there is a student exception, it;s not relevant in your case because you also have no taxable income. The dependent care credit is not a refundable credit. If you have no calculated tax to offset (take a credit against) you get no credit.

You also will not qualify for the refundable education credit because you were not "out of pocket" for any tuition or other expenses. Expenses paid with tax free GI benefits does not qualify.

Furthermore, the money you hear about people getting for just filing a tax return claiming kids requires you to  have some earned income (wages or self employment). Without earned income, you are not eligible for the "refundable" Earned Income Credit or Additional Child Tax Credit.