Tax Trails - Can You Claim the Child and Dependent Care Credit?
Did you (and your spouse) have earned income* during this year?
*Note: Earned income includes wages, salaries, tips, and other employee compensation that is includible in gross income for the tax year, plus net earnings from self-employment. Earned income does not include pensions or annuities, social security payments, workers’ compensation, interest, dividends, or unemployment compensation. A spouse who is not capable of self-care or who is a full-time student may be treated as having earned income.
For more information, see Earned Income Test in Publication 503, Child and Dependent Care Expenses.