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Why did child and dependent care credit not calculate in 2018?

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Client MFJ has same number of kids, income level stayed above $270k, dependent care expenses above $6000, and no other significant changes between 2018 and 2019. However, the credit of $1200 was not calculated for 2018 but is now showing up for 2019.
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Level 15
Level 15

You'll just have to follow the math down the 2441 and see how its computing the 1200   

You're sure the DCB in Box 10 was included on the W2?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Level 15
What is (was) in box 10 of the W2 for each year?

ex-AllStar
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$5,000 for both years.

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Level 15
Level 15
Compare the 2018 and 2019 printed 2441s to each other, what's different?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Main difference is Lines 5, 6, and 9 are missing from 2018. I'm not sure what is driving those line calculations because I see amounts on those lines in 2019.

Also, I believe since the W2 has $5,000 in both years, they should only qualify for $200 credit. However, 2018 is calculating $0 while 2019 is calculating $1200. 

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Level 15
Level 15

Did both spouses work and have earned income in 2018?   


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Yes, for both years.

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Level 15
Level 15
They both had W2 income? or was someone self employed? They need to have a net profit from self employment, if they have a loss, it doesnt count as earned income.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Both spouses each had W2 wages. In addition, 1 spouse received 1099 income. They also had rental income as well.

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Level 15
Level 15

2018 has some kind of issue with the earned income of one of them...if Line 5 of the 2441 is blank that means someone didnt have any earned income.

Maybe all W2s got assigned to only 1 person by accident?  Did the self employed person have a loss?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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You're right. Both W2's were classified under one spouse in 2018. I updated 2018 and the credit adjusted to $200 which is what I expected.

However, 2019 is showing $1200 for the credit. I believe it should be $200 for 2019 as well but this time the W2's are correctly applied to 1 per spouse.

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Level 15
Level 15

You'll just have to follow the math down the 2441 and see how its computing the 1200   

You're sure the DCB in Box 10 was included on the W2?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post

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Thank you for your help. I now see that there was an override entry in 2019 that was somehow making the return eligible for the $1200. I removed it and it now properly calculates at $200. 

 

Thanks for all your help and the quick response times.