Child and Dependent Care Credit Filing Problem

[TaxDay2022]

We are filing "Married Filing Jointly" and both of us work. However, whenever I tried to enter information for "Child and Dependent Care Credit" on Turbotax (Home & Business), I was directed to the question if either of us "was a full-time student" or "was disabled."  Whenever I select "none of the above" for both of us, I was returned got back to the main menu. My husband receives a W2 form, and does not seem to be the problem. I receive a 1099, because I am paid off a taxable grant. Is there a way for TurboTax to acknowledge my income? Thanks in advance!

[DawnC]

Taxable grants are generally considered ordinary income, not self-employment.    Do you receive a Form 1099-G?    Is it made out to you or your business and does Box 8 of your 1099-G indicate that the income is business income.    Do you report your income on Schedule C, E or F?   Those schedules report self-employment income that count for purposes of the credit.   You need to either have W-2 wage income reported or have self-employment income reported on one of those schedules to claim the credit.   

[TaxDay2022]

Thank you for the quick reply. I receive a 1099-G form. I work for the government and do not have my own business, so box 8 is not selected. 

[KrisD15]

To clarify, 

what service is the 1099-G compensation for? 

Child and dependent care is based on working, students and or disabled individuals. 

[TaxDay2022]

The compensation is for work. My occupation title is a postdoctoral fellow.

[LenaH]

Per the IRS, scholarships or fellowship grants, except for those reported on Form W-2 and paid to you for teaching or other services, is not considered Earned Income for the purposes of the Child and Dependent Care Credit. 

Please see Publication 503. 

@TaxDay2022

[TaxDay2022]

Thank you very much for the link @LenaH, this helps a lot. In this case, do you think I qualify as a full-time student? My hours are considered full-time at this institution.

https://www.irs.gov/publications/p503#en_US_2021_publink[phone number removed]

Full-time student. You are a full-time student if you are enrolled at a school for the number of hours or classes that the school considers full-time. You must have been a full-time student for some part of each of 5 calendar months during the year. (The months need not be consecutive.)

School. The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. A school doesn't include an on-the-job training course, correspondence school, or school offering courses only through the Internet.

[LenaH]

Yes, if you are enrolled as a full-time student then you would meet the qualifications. 

@TaxDay2022