Does SSDI income count for Dependent care credit?

[Ledillon1]

My husband is disabled and receives Social Security Disability income.  Our child is in daycare.  Does the SSDI income count as earned income and also qualify us to receive the dependent care credit?  He has no other income but I have a good amount of income. Because I have income, at least 50-85% of it will be included in our taxable income. Thanks!

[rjs]

Social Security disability income does not count as earned income for the child and dependent care credit.

If your husband is "physically or mentally not able to care for himself" he can be treated as having earned income of $250 per month. But if that were the case you would need someone to care for your husband while you work. So if he doesn't work he has no earned income, and you cannot claim the child and dependent care credit.

Being disabled is not the same as being "physically or mentally not able to care for himself."

[Opus 17 · Accepted solution]

You and your spouse must have income from working, in order to claim the dependent care credit for your child.   If your spouse is unable to care for themself (and therefore also unable to care for your child), then you can claim the credit if you pay for daycare for your child so that you can work. The IRS allows "imputed" or imaginary income of $250 per month or $3000 per year that you can use to qualify for the credit. 

I don't see a written requirement that you must also provide care for your spouse, but I agree that it would be common sense that if you claim your spouse is unable to care for himself, the IRS would expect to see care expenses for your spouse as well.

Incidentally, if you do pay for care for your spouse so that you can work away from the home, that expense would also be eligible for the child and dependent care credit.  If you pay for care for two qualifying persons (your spouse and your child) the IRS will allow up to $500 per month or $6000 per year of imputed income to qualify for the credit.  Even though your spouse is never your dependent, he can be a qualifying person for the credit if they are unable to care for themself.