Turbotax won't let me enter Child and Dependent Care Credit info. It gets caught in a loop sending me back to the beginning. Has anyone else experienced and resolved?

[adamfreer]

We have several forms of childcare we've paid for that aren't covered by FSA, but we can't get to the page where we can enter these. Just keeps looping around after asking several questions. My wife and I both have earned income.

[LenaH]

In your situation, it is recommended that you first log out of your TurboTax Online and delete your cookies.

On rare occasions, they may make your browser think you already did something that you still need to do. To fix that, you'll need to delete (clear) the cookies from your browser. For more information on how to delete your cookies on the browser you are using, please see How do I delete cookie

Once that is complete, please complete the following:

1. While signed in to your return, search for child care credit (use this exact term) and select the Jump to link at the top of your search results.
2. This will take you to the Did you pay for child or dependent care in 2020? screen. Answer Yes
3. Follow the on-screen instructions

To qualify, your child must meet all of these requirements:

• Be under age 18 at the end of the tax year
• Is your child, stepchild, foster child, adopted child, sibling, step sibling, half sibling, or a descendant of any of them (for example, a grandchild, niece, or nephew)
• Has their own Social Security Number
  • Children with ITINs don't qualify, but may instead be eligible for the $500 Credit for Other Dependents
• Lived with you for more than half the year
• Didn't support themself (didn't pay more than half their own expenses)
• Is a U.S. citizen, U.S. national, or U.S. resident alien
  • Residents of Canada or Mexico don't qualify

The Child Tax Credit is also fully refundable. Meaning that you’re eligible for the credit even if you don’t owe taxes.

[adamfreer]

Thank you, but it unfortunately didn't work. I logged out, deleted cookies and typed "child care credit" in the search. But I didn't get a "jump to" option. We meet all of the conditions described. 

[BillM223]

Please describe the sequence of the screens in the Child and Dependent Care credit interview that you are seeing. We are aware of one "loop", but it happens when one spouse does not have earned income. Is it possible that you entered both W-2s under the same spouse (it defaults to the primary taxpayer)? This happens more often than you think, that you enter a W-2 and don't notice that it was assigned to the primary taxpayer and not to the spouse.

Otherwise, please describe the sequence of screens, and let's see what this might be.

[adamfreer]

We have salary entered in for both spouses. It asks us if we want to enter Child and Dependent Care info. Then it asks if we lived in the US for more than half the year. Then it pulls up a screen saying that both parents have to have earned incomes, or have disabilities or be students. It has check boxes to indicate disability or student for either me or my wife. When I select None of the Above (indicating no disability or student status) and hit continue, it takes me back to the page listing all of the deductions....the one that has the "Needs Review" button. If I click the button, it starts the process over.

[xmasbaby0 · Accepted solution]

@adamfreer Check to make sure you entered each spouse's income under the spouse's name.   Sometimes people just enter it all under one of the names and that will mess up the childcare credit for you.

[adamfreer]

Thank you @xmasbaby0 . That was it. Somehow the name associated with one of our incomes was wrong, indicating they were both earned by the same person. 

[slingkong]

I am in that same loop:

- click Edit/Add for the Dependent Care Credit deduction

- answer Yes for the question "Did you pay for child and dependent care in 2021?"

- answer Yes for the "principal place of residence in the U.S." question

- answer "None of the above" for both my spouse and I in the Tell Us More screen

I am bounced back out to the main Deductions & Credits page. I checked that all W-2 and 1099 forms identify the correct person.

[JamesG1]

Review your W-2's and make sure that they are assigned to the correct spouse.  Under the Child and Dependent Care Credit, if one spouse has no income the credit can be disallowed.

[slingkong]

Is only W-2 income counted? My wife has 1099-MISC and 1099-NEC income and those are properly allocated to her. 

[GeorgeM777]

The preface of your question indicates that you may be caught in a loop.  When you return to the Deductions & Credits section, rather than selecting the category Child and Dependent Care Credit, select the Visit All category at the top of that section and move through the application from that point.    

Additionally, let's make sure you qualify to claim the dependent care credit.  The requirements are that the dependent must be:

• A child aged 12 or younger at the end of the year whom you claim as a dependent on your tax return.
• Your spouse, if that person is unable to take care of himself or herself and has lived in your home for at least half the year.
• Any other person claimed as a dependent on your return if that person can't take care of himself or herself and has lived in your home at least half the year.

Additionally, because you are married, you and your spouse must have earned income such as wages earned from a job.  Investment income, such as dividends and capital gains would not count as earned income.  It does appear that you and your spouse have earned income as your spouse has a 1099-NEC, and we assume you entered the 1099-NEC as self-employment income.  However, if the 1099-NEC and the 1099-Misc were entered as "other income," that is income not from a job or self-employment, then the requirement that the both of you have earned income may not have been met.  Thus, double-check how you entered the 1099-Misc and 1099-NEC income amounts.  You must also have paid for the care so that you and your spouse could work or look for work, and you must also file a joint return.  

@slingkong

[VolvoGirl]

Does her income show up on Schedule C?  You need a Net Profit on Schedule C to count as earned income.

[digou182]

I am experiencing this same loop. Only my income is listed in the Income section, as my wife and I are Married - Filing Separately this year. After selecting Yes to the question of paying for child care in 2021, as well as the Principal Place of Residence being in the US more than half the year, as well as selecting the boxes of the person whose care was paid for living with me for more than half of 2021 and the paid more than half of expenses of maintaining my home, the Continue button reverts me back to the Tax Breaks page without the ability to input the amount paid for Child Care.

[xmasbaby0]

You cannot get the childcare credit if you are filing married filing separately.

[VolvoGirl]

Sorry, you can't take the Child Care Credit if you are filing separately.

What is the Child Care Credit

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

That is one of the list of things that are limited for MFS.  And may I ask why you are filing separate returns?  Sometimes people don't realize the differences between filing  Joint and MFS.

Unless you have a specific reason to file separate returns,

It is usually better to file Joint. Joint has the lowest tax rates and the highest Standard Deduction.   And if you are in a Community Property state MFS gets tricky to figure out.  Here's some things to consider about filing separately……

In the first place you each have to file a separate return, so that's two returns.  And if you are using the Online version that means using 2 accounts and paying the fees twice.  

Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong.  If one person itemizes deductions on Schedule A then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!  (Business expenses are not itemized deductions.  Business goes on Schedule C not A.)

And there are several credits you can't take when filing separately, like the

EITC Earned Income Tax Credit

Child Care Credit

Educational Deductions and Credits

And contributions to IRA and ROTH IRA are limited when you file MFS.

Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.

See …….

https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-...