Earned Income Test
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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 (Tab H), which explains earned income.
