Why don't we qualify for the dependent care credit? We paid $20,000 in childcare this year and it lowered my federal taxes due, but still says we don't qualify.

[liljamers22]

We both work, are married and filing jointly, and meet all qualifications. We had $5,000 FSA taken out of one paycheck, but the total expense is much more.

[Bsch4477]

@jrs answered that today for someone else. 

For one child, the maximum amount of child care expenses that you can claim for the credit is $3,000. That maximum is reduced by the amount that you used from your FSA. The $5,000 from the FSA is subtracted from the $3,000 maximum. The result is less than zero, so you have already exceeded the $3,000 maximum for one child. You cannot use any additional expenses for the credit.

[xmasbaby0]

@liljamers22 The tax law changed for 2022 and reverted back to the "old" rules.   The childcare credit is not refundable for 2022, and the amounts are less than they were for 2021.   Sorry.

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

[SharonD007]

The child and dependent care tax credit is a nonrefundable credit, which means the credit cannot reduce your tax liability if it’s already zero.  Also, the maximum amount you deduct is $3,000 for one child and $6,000 for two or more.

Ensure that you meet all the eligibility requirements for the Child and Dependent Care Credit to get the credit: 

1. The qualifying person  must be your dependent (and is either under age 13 or is disabled).
2. You must have earned income. 
3. Your spouse (if filing jointly) also must have earned income, is a full-time student, or is disabled. 
4. You must file Married Filing Jointly if married or meet the exception.
5. You must provide the caregiver's name, address and identifying number (social security or tax ID number). 
6. You must owe income taxes.

You can view your tax summary in TurboTax to check if your tax liability is zero.   

1. Launch TurboTax.
2. Select Tax Tools on the left side of the screen (you may need to click on Continue in the center first). 
3. Select Tools. 
4. In the box that pops up, select View Tax Summary. 
5. Check to see if there is a zero for Total Tax.

If that is not the case, review your entries to ensure that you have not made a mistake. 

Review your W-2 entries:

1. Type W2 in the search box.
2. Select the Jump to W2.
3. Review the entries in Box 10.

Review your entries for the Child and Dependent Care credit:

1. Select Deductions and Credits.
2. Type in child care credit in search box.
3. Select the Jump to child care credit.

For additional information, please review the TurboTax article The Ins and Outs of the Child and Dependent Care Tax Credit.

[Edit 2/12 | 3:30pm PST]

@liljamers22