Taxpayers who incur expenses for child or dependent care while working or seeking employment may qualify for the Child and Dependent Care Credit. For married couples filing jointly, both spouses must have earned income to claim the credit or exclude dependent benefits from income—unless one spouse is a student or disabled.
Who is Considered a Student?
A taxpayer or spouse qualifies as a student if they were enrolled full-time at a school for at least part of five calendar months during the tax year.
(Note: Credit programs, correspondence courses, internet-only schools, and on-the-job training programs do not count as eligible schools.)
Who is Considered Disabled?
A taxpayer or spouse is considered disabled if they are unable to care for themselves due to a physical or mental condition.
How to Include Income for a Student or Disabled Taxpayer/Spouse in the Child Care Credit Calculation:
On the left-side menu, go to Federal Section > Deductions, then select Credits Menu.
Click Child Care Credit.
Complete the required three steps, then proceed to Page 2.
Page 2 – Entering Additional Income for the Credit
For the Taxpayer: If the taxpayer was a student or disabled, enter the greater of:
(a) The number of months they were a student/disabled × $250 or $500, OR
(b) Their earned income during that period.
For the Spouse: If the spouse was a student or disabled, enter the greater of:
(a) The number of months they were a student/disabled × $250 or $500, OR
(b) Their earned income during that period.