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Level 1
April 26, 2024
Question

Credit for Child or Dependent Care

  • April 26, 2024
  • 3 replies
  • 9 views

Credit for Child or Dependent Care Expenses in the amount of $1,050 was disallowed due to tax liability limitations. US - Ref #730

Why is this credit disallowed? 

client made 17000 self employed (head of household)  and 600+ in w-2, care expenses were a total of $6600 for 1 dependent. 

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    3 replies

    IRonMaN
    Level 15
    April 26, 2024

    Have you researched whether or not the dependent care credit is refundable?

    Slava Ukraini!
    Level 15
    April 26, 2024

    Have you looked at line 10 of Form 2441?

    BobKamman
    Level 15
    April 26, 2024

    When income tax is zero, the credit is zero.  What may be distracting you from this inconvenient truth is that the client is paying tax -- but it's only SE tax, not income tax.