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Why am I not qualifying for the dependent child care credit when I paid almost $9000 last year and I claim all three dependents?

 
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2 Replies

Why am I not qualifying for the dependent child care credit when I paid almost $9000 last year and I claim all three dependents?

You will not get the childcare credit until (unless) you enter income earned from working.   The credit does not work unless you enter your income first.   If you are filing a joint return you must show income for both spouses, or show that one or both of you was a student or disabled.   If you have self-employment income and show a loss you will not get the childcare credit.  You will not get the credit if you are filing married filing separately.  

 

If you have entered all of your income and you have entered your dependent(s) then work on the childcare credit by entering the Tax ID or Social Security number of your childcare provider and enter the amount you paid for the childcare.

 

One of the most common mistakes that messes up the childcare credit for people is listing all of the earned income under only one name on a joint return.  Make very sure that your incomes are listed under each of your names.  It’s pretty easy to check.  Go to the Income section, and click “update” on Wages and Salary.  That will take you to the W-2 Summary.  Do you see income listed under both of your names? 

 

 

 The person receiving the care had to be 12 or under or qualified as mentally or physically disabled. To claim the childcare credit you need to be filing as Head of Household or Married Filing Jointly. (NOT married filing separately)

 

 If your child was born in 2022 make sure you say the child lived with you all year. The credit is a percentage of your expenses based on your AGI (the higher the income, the lower the percentage)  You must provide the Social Security number for each child you are claiming, and the Social Security number or Tax ID for each care provider. 

 

In the case of divorced or never-married parents—only the custodial parent can use the childcare credit.

 

 

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.

 

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
DMarkM1
Employee Tax Expert

Why am I not qualifying for the dependent child care credit when I paid almost $9000 last year and I claim all three dependents?

Assuming you and your spouse, if filing a joint return, had earned income the most likely reason the "Dependent Care Credit" does not increase your refund is that this credit is non-refundable.  

 

Once your tax on line 18 is reduced to zero, no other non-refundable credit can be applied.  After confirming your entries as mentioned by Xmasbaby0, you can view your form 1040 and schedule 3 using the steps below. 

 

Check lines 18 - 22 on the 1040 and line 2 of schedule 3 to see what is happening with your return.  

 

  1. "Tax Tools" in the left hand menu
  2. "Tools"
  3. "View Tax Summary" in the main screen
  4. "Preview my 1040" in the left hand menu
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