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.
@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.
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:
To qualify, your child must meet all of these requirements:
The Child Tax Credit is also fully refundable. Meaning that you’re eligible for the credit even if you don’t owe taxes.
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.
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.
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.
@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.
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.
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.
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.
Is only W-2 income counted? My wife has 1099-MISC and 1099-NEC income and those are properly allocated to her.
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:
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.
Does her income show up on Schedule C? You need a Net Profit on Schedule C to count as earned income.
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.
You cannot get the childcare credit if you are filing married filing separately.
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 …….
I was not aware of that. That is certainly good to know. Thank you for your help.
My wife and I both received Letter 6419 with the same amounts, but the software only let's me enter the amount for me. I can't enter the amount set forth in her letter. It remains "0", even though I am typing over it.
As long as the total amount of advanced child tax credit is entered, your return will be correct. First try signing out of the program and clearing your browser cache. Here is a helpful link.
Next, sign back in and revisit the "Advanced child tax credit" topic. If it doesn't clear this time just put the total amount of both letters in one box. Finish the topic interview and be sure to check the total box to verify it is correct.
So what about when you're married but filing seperate due to pending divorce? I don't have her W2's. How do I input the multiple thousands I've had to pay in childcare?
Sorry you can't deduct Child Care If you file Married filing Separate. Unless you qualify to file as Head of Household. If you are not divorced yet you could still file a Joint return.
Sounds like a headache will be coming soon dealing with her. I appreciate the advice. I'll look into what it takes for head of household.
Do you have any dependents or children? You can't check the HOH box until you have entered dependent info and ssn.
See IRS Pub 501 page 10 for qualifying person.
https://www.irs.gov/pub/irs-pdf/p501.pdf
Who is a qualifying person for Head of Household
See FAQ on Head of Household
https://ttlc.intuit.com/community/family/help/do-i-qualify-for-head-of-household/00/25539
I am having this same issue! I read through the comments, I have double checked and I have earned income listed under myself and my husband(when I see the list my name is listed next to mine and his name is listed next to his- he has two W2s), I have cleared my cache as suggested and nothing is working. What else am I able to do to solve this? We meet the eligibility requirements and this is our last step before being able to complete our tax returns. Our loop starts after we reach the page where we have to check if we were full time students or disabled or none of the above, when I click none of the above it loops me back around to beginning, but we have earned income so we should qualify. Help!
Apparently you're not allowed to be married, file seperate and claim any expenses for child care. From what I've read, in the past people would double dip and each claim the expenses on their own filing. So they made it so you can't do that anymore. If you want to claim your child care expenses then you have to file as joint.
@lizzij316 You mentioned our return
s
-----If you are filing married filing separately you cannot get the child care credit. Or if you are filing a joint return you have to show income from working from both spouses. If one of you is self-employed and showed a loss you will not be able to get the childcare credit.