Are you confusing the child care credit with the child tax credit? In order to use the childcare credit---the one for paying someone to take care of your child so you can work----you can be looking for work--but the catch is you have to actually find a job and begin working or you do not get the childcare credit. Or---if you are self-employed and show a loss, you will not get the credit.
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A
Anonymous
March 11, 2025
apologies, yes its the child & dependent care credit, not the child tax credit.
To answer the other questions...
* I haven't entered any business expenses at all for my wife, so she is showing a net gain of around $2000
* I have earned income, higher than $6000
* Turbotax is saying we are not eligible because my wife did not make $6000 in earned income.
Thank you for that clarification. There is a limit on expense of $6,000 per child, but there is not a $6,000 requirement for the income. I'd like to take a closer look at this in your case.
To let me do that, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:
TurboTax Online:
Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.
TurboTax Desktop/Download Versions:
Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number (including the dash) that was generated in the response.
*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)
If possible, please post a screenshot with the number to avoid deletion by our privacy filters which sometimes delete or shorten these numbers.
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Assume you referring to the Child and Dependent Care credit, not the Child Tax Credit, totally different type of credit.
For the Child and Dependent Cared Credit, both of you must have earned income to be eligible for the credit. Did you have earned income in 2024 and if so, have you entered that income in the TurboTax program?
Was your wife's only income this year from her new business? If so, check to be sure she has net profit in that business, or it won't count as her having "earned income" for purposes of the dependent care credit. If she has more expenses than she had income, showing a loss or a $0, then you won't be eligible for this credit this year.
Return to the Income section and look at the 2024 column for "Business Income and Expenses (Sch C)".
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