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owner
New Member

I am self employed and run a LLC from my home. When I put in my childcare expenses, it says I do not qualify because I do not have any income. What do I need to do?

 
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ChristinaS
New Member

I am self employed and run a LLC from my home. When I put in my childcare expenses, it says I do not qualify because I do not have any income. What do I need to do?

In order to have a child and dependent care benefit, your LLC income self-employment income cannot be negative. When your LLC income is negative, that means you have no income for this purpose.

If your income is not negative, are you married and filing a joint return? Both spouses need income for this, or to be a full-time student or disabled. 

Does it make sense that your LLC is operating at a loss? If not, review your income and expenses on that.

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6 Replies
ChristinaS
New Member

I am self employed and run a LLC from my home. When I put in my childcare expenses, it says I do not qualify because I do not have any income. What do I need to do?

In order to have a child and dependent care benefit, your LLC income self-employment income cannot be negative. When your LLC income is negative, that means you have no income for this purpose.

If your income is not negative, are you married and filing a joint return? Both spouses need income for this, or to be a full-time student or disabled. 

Does it make sense that your LLC is operating at a loss? If not, review your income and expenses on that.

ChristinaS
New Member

I am self employed and run a LLC from my home. When I put in my childcare expenses, it says I do not qualify because I do not have any income. What do I need to do?

Single member LLC on Schedule C or in LLC partnership and get K1?
owner
New Member

I am self employed and run a LLC from my home. When I put in my childcare expenses, it says I do not qualify because I do not have any income. What do I need to do?

It's a partnership LLC but between me and my spouse only so my understanding is I can treat it like a sole proprietorship in file a Schedule C
ChristinaS
New Member

I am self employed and run a LLC from my home. When I put in my childcare expenses, it says I do not qualify because I do not have any income. What do I need to do?

Maybe. An LLC can be treated as 2 Sch Cs only if you and your spouse live in a community property state. Otherwise, you must file a 1065
owner
New Member

I am self employed and run a LLC from my home. When I put in my childcare expenses, it says I do not qualify because I do not have any income. What do I need to do?

We are in Texas so yes
ChristinaS
New Member

I am self employed and run a LLC from my home. When I put in my childcare expenses, it says I do not qualify because I do not have any income. What do I need to do?

Ok, good:-)
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