1099 NEC Childcare Credit

[Tx287]

Hello,

My husband and I both have earned income, his w2 and my 1099-NEC. This year we can’t add the childcare credit despite meeting all the requirements, the only choices to qualify when we attempt to add it are full time student or disabled. In years passed we have qualified and nothing is different this year.

I did claim business expenses but not that exceed my income on my 1099 NEC. 

How do I add the Childcare credit?

[xmasbaby0]

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 2023 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

[Tx287]

Thanks, we have added both of our earned  income and we’re still not able to apply it. We can’t even get to the point to add the childcare facility tax id because it tells us we’re ineligible despite meeting all the requirements.

[xmasbaby0]

@Tx287 Make sure your child's information is entered correctly in My Info.  And....you get the childcare credit for a child younger than 13----if the child is older than 12, you lose the childcare credit.    I suggest going back through the screens in My Info to check the date of birth you entered for your child and check all of your other answers to the questions about your child.

If that does not help---

To call TurboTax customer support

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

Customer support is available from 5 a.m. to 9 p.m. Pacific time