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TaxPrep85
New Member

1099-K Income not registering correctly in desktop TT - Interfering with claiming childcare credit (EIC issue)

There is a major bug in the TT desktop software, where 1099 income does not show up in the summary. It still apparently shows up on the 1040 generated by the software, which would be fine, except that this missing information is now leading the software to incorrectly state that we (couple filing jointly) cannot claim childcare credit because EIC is only evident for me, not my spouse (he has the 1099). This is costing us a big chunk of change in our refund. 

 

Someone has claimed in a prior post on this bug that this bug has been corrected in an update, however, they do not provide a link to this update and when I check for a software update from with TT on my desktop, TT says that the app is up to date. 

 

My 3 questions are:

1. can someone direct me to a link for this specific patch/update?

2. if none exists does anyone have a method for forcing the TT software to take the childcare credit?

3. if none of the above, does anyone know if this bug is present in the online version of the software?

 

Thanks

 

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2 Replies

1099-K Income not registering correctly in desktop TT - Interfering with claiming childcare credit (EIC issue)

Did your spouse file the 1099 income as self employment on Schedule C?  Does Schedule C show a Net Profit?  Each spouse has to show income to claim the Child Care Credit.  A loss won't count.  What about the EIC?  That's separate from the Child Care Credit .  Oh make sure that Schedule C is assigned to the right person.  

DawnC
Employee Tax Expert

1099-K Income not registering correctly in desktop TT - Interfering with claiming childcare credit (EIC issue)

There is no bug with the childcare credit.   The 1099-K income should show up on the BUSINESS summary, not the personal summary.   Only the Home & Business version of TurboTax desktop has the BUSINESS tab.   If you are using a different version, and you have 1099 income reported on a Schedule C (business income), you won't see the amount on the summary, but that is not an error, you should not see business income on the personal income summary.   

 

Both the 1099 and the associated Schedule C needs to be assigned to your spouse.  Currently, it sounds like the business income is assigned to you - and therefore TurboTax does not see any earned income coming from your spouse - and without earned income from both of you, you won't qualify for the Dependent Child Care Credit.   

 

So go back and edit them and make sure they are assigned to your spouse and not you.   At the top of the screen, TurboTax will ask who the form belongs to.   

 

Then go to Forms (upper right-hand corner) and find your Earned Inc Wks and make sure there is earned income reported for both of you, not just one of you.  

 

 

 

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