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jtsm1th01
New Member

Earned Income is not being counted towards the Child and Dependent Care credit requirement.

 
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1 Reply
IsabellaG
Expert Alumni

Earned Income is not being counted towards the Child and Dependent Care credit requirement.

What kind of Earned Income is this?

The income must be earned income to qualify for the child and dependent care credit.  If this income is on a K-1:

If  the K-1 is from a partnership (Form 1065), it will count as earned income if there is an entry in box 14 with code A net earnings from self-employment. 

If this K-1 is from an S corporation (Form 1120S), then the corporation must have issued a W-2 as an employee for you to have earned income.

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