Married, have always filed jointly. 3 kids <18, 1 in daycare. My gross is ~$60k.
Looking for clarity on the earned income requirements- or if there’s a minimum of $2500 per earner, or just combined income?
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For the Child Care Credit I don't know if there is a minimum amount. Just have earned income.
Child Care FAQ
If one of the spouses is self-employed and showed a loss, then you cannot get the childcare credit. Both spouses have to show earned income in order to get the child care credit.
with only 1 child in daycare, and your adjusted gross income above $43,000 the credit rate is 20% and the maximum credit is $3,000. The maximum credit is determined by multiply the lower of your earned income or hers by 20%, so each of you would need $15,000 in earned income (wages, net schedule c income, se income from partnerships).
there is a further limit to tax liability before this credit.
this assumes your employer is mot providing and dependent care benefits
you should review form 2441 where the credit is computed.
Look at the form 2441 line 6 ... enter the lesser of lines 3-4-5 ... so if line 3 is $3000 for one child or $6000 for 2 or more kids then the earned income for each spouse must be at least the amount on line 3.
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