Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Credit for Child and Dependent Care Expenses

Five Eligibility Tests

Earned Income Test

     

Earned Income Test

Did you have earned income during the year?

If NO, You CANNOT claim the child and dependent care credit.

If YES, go to work-related expense test.

The next test is the earned income test. The taxpayer (and spouse if married) must have earned income during the year. Earned income includes:

  • Wages
  • Salaries
  • Tips
  • Other taxable employee compensation
  • Net earnings from self-employment
  • Strike benefits
  • Disability pay reported as wages

Refer to the Earned Income Table in the Volunteer Resource Guide, Earned Income Credit tab, which explains earned income.

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