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New Member
posted Jan 22, 2022 12:24:27 PM

Why is my child care credit showing so low shouldn't it be 50 percent of amount paid?

0 6 836
6 Replies
Level 15
Jan 22, 2022 12:50:10 PM
Alumni
Jan 22, 2022 12:52:55 PM

Did you have more than $8,000 of expenses ($16,000 for two or more qualifying persons)? The total credit cannot exceed 50% of that amount. These limits are further reduced if you receive a deduction or W-2 exclusion (i.e., dependent care FSA) for child care expenses.

 

Also, was your AGI greater than $125,000? If so, the 50% is reduced.

 

For more specifics on how the child CARE credit (as opposed to the child TAX credit) is figured for 2021, see IRS Publication 503 at https://www.irs.gov/pub/irs-pdf/p503.pdf . See also TurboTax help on this credit at https://ttlc.intuit.com/community/credits-and-deductions/help/what-is-the-child-and-dependent-care-credit/00/25907 .

New Member
Jan 22, 2022 1:29:23 PM

No it didn't exceed 8000 for each child it was less I have two children and barely made anywhere near 125000 its only showing me 11.00 back

Level 15
Jan 22, 2022 1:55:12 PM

Ok ... first did you enter in all your income yet ?    If not please do so.  

 

Next ignore the Refund-O-Meter and look at the actual forms ... that credit is used first to reduce the federal taxes before the excess will be added to the refund. And it is limited to the lesser of what you paid for daycare not to exceed 8,000 (16K for 2 kids), your earned income and your spouse's earned income if married.

New Member
Jan 22, 2022 2:50:45 PM

Yes all income was added already the amount says 11.00 for dependent care not sure what's going on

Level 15
Jan 22, 2022 2:59:25 PM

Look at the form 2441 ... which line us the $11 on?