Question

Dependent Care Tax Credit not working for self-employment

Forum|Forum|1 year ago
March 12, 2025
1 reply
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I have a w-2, my wife has a sole proprietorship, so she files (we file jointly) within her personal taxes. She is showing an income (revenue greater than expenses), but still TurboTax says we are not eligible. It says that I entered less than $6000 of earned income for her. This is not the case, her self-employment income is greater than that.

Can anyone provide any insight?

TurboTax Self Employed Online

DawnC

Did you enter that your wife is the owner of the Schedule C? It may be attached to your name instead of hers. You can verify this in the Business Profile. Did her business have net income on Line 31 of Schedule C?

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S

sdkk1499Author

I don't understand the screenshot. I am doing this in the online TurboTax. I can click into "Business Summary" under the self-employed section and it lists her name as the "Who did this work". Where can I find the form on the screenshot that you showed?

Thanks!

SusanY1

There are a few other things to check for the Schedule C, now that you've confirmed that it shows her name for "who did this work". Make sure that her expenses do not exceed her income (or the credit won't be allowed). She must show a positive net profit (not zero or a loss).

Also, double-check that the answer to "Did you actively participate in this work?" is answered yes for her as well.

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