How does the Child Tax Credit and Dependent Care Credit impact this year's tax return?

[conniem123]

The Child Tax Credit for 2022 is now worth up to $2,000 per qualifying child.  It directly reduces the tax you owe.  It can be limited if your adjusted gross income exceeds a specific amount based on your filing status.

The Child and Dependent Care Credit for 2022 has a maximum amount you can claim of $3,000 for one person, or $6,000 for two or more people.  The percentage of your qualified expenses that you can claim ranges from 20% to 35%.

https://turbotax.intuit.com/tax-tips/family/child-tax-credit/L9ZIjdlZz

https://turbotax.intuit.com/tax-tips/family/the-ins-and-outs-of-the-child-and-dependent-care-tax-cre...

Hope you find this helpful!

[SuziM]

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[three4atvs]

I've asked this in the community through my login, but I haven't gotten a response or read a response for others that are similar as to why I'm not able to claim my dependent care expenses, when we have earned income?

We were able to claim last year with roughly the same Gross income.  Please explain.

Thank you

[VolvoGirl]

Make sure you are each showing income.  Check each W2, should be assigned to the right spouse.   If you have self employment income you need to have a profit to qualify.  Have you entered all your income yet?

[three4atvs]

Yes I have everything in and my Husbands self employment income had a profit.  Granted it is small, it is still a profit.

[three4atvs]

Also, I can't even get to where I can enter any of my expenses for Dependent Care.

[CatinaT1]

This article should help - Child and Dependent Care

It's possible you don't have any tax to offset, and that's why you don't qualify. The child and dependent care tax credit is nonrefundable, which means the credit cannot reduce your tax any further if it is already zero.  

Make sure you meet all the qualifiers for the credit.  

To qualify for the Child and Dependent Care Credit, ALL of the following must be true:   

• Your dependent is listed (and is either under age 13 or is marked as disabled).   
• You have earned income.   
• Your spouse (if filing jointly) also has earned income, is a full-time student, or is disabled.   
• Your filing status is not Married Filing Separately.   
• You have provided the caregiver's social security or tax ID number.   
• You must owe tax.    

 You can check to be sure that is what is happening by viewing your Tax Summary.   Here is how to do that:   

1. Log in to your tax return 
2. Click on Tax Tools on the left side of the screen (you may need to click on Continue in the center first).   
3. Click on Tools.   
4. In the box that pops up in the center, click on View Tax Summary.   
5. If you see a  0  for Total Tax, then that is the reason you don't qualify for this particular credit.