Why can't I claim the dependent daycare credit? I have W2 and my husband is self employed?

[Lisa995 · Accepted solution]

Does your husbands self employment Schedule C show a profit?  You each need earned income to qualify for child care credit...if he has a loss, he has no earned income.

[rahaffa08]

We did have a schedule C but he had a loss and it was his first year. That makes sense. Thank you so much!!

[rahaffa08]

I just had a thought. While that makes sense I still have to pay for daycare because I work full time and he runs his business full time, even if it doesn’t make us money. Is there any way around this?

[Lisa995]

It doesn't make much sense logically, I agree.  That's how it works with the childcare credit.

[rahaffa08]

Ok. I appreciate your help!!