Why am I not eligible for Dependent Care credit? My wife and I both earned money, but my wife earned less than $6000. TurboTax says we're not eligible.

[robert2929]

We both have income under our names. TurboTax asks if we were full time students or disabled. This isn't the case, so we're ineligible. I thought any expenses for child care while both parents worked was deductible.

[VolvoGirl]

Have you entered all your income?  You both need earned income.  Make sure each W2 is assigned to the right spouse.    If you have self employment income you need to have a profit to qualify.

See the Child Care Credit for qualifications

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

[xmasbaby0]

Th childcare credit is available on a joint return if both parents worked and earned income. You have to enter your income before you try to work on this credit.   But if one or both of  you had self employment income that showed a loss, you cannot get the credit.  And....your spouse earned a small income.  

Try this IRS interactive tool to see what it says.

https://www.irs.gov/help/ita/am-i-eligible-to-claim-the-child-and-dependent-care-credit

[robert2929]

My W2 is entered, and her 1099-NEC is entered. She earned a profit for the year.

[robert2929]

Thanks for the response. I went through the questions and I should qualify. I double checked income and we both have it, and she doesn't show a loss.

[xmasbaby0]

And remember that the childcare credit is a NON-refundable credit.  It can reduce your tax owed down to zero, but it is not added to your refund.

[robert2929]

I checked, I still have a tax liability. I double checked and I have 1099 income listed under my wife's name. It seems like TurboTax is bugging out and thinks my wife didn't make any money.

[xmasbaby0]

If one of you had self-employment income and shows a loss, you will not get the childcare credit.  

[KeshaH]

If you'd like, we can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

Please reply to this message with your token so that we can further assist you. Let us know what state is included in your return.

@ehrmann-robert