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New Member
posted Oct 30, 2019 12:29:01 AM

The software does not deduct child care expense (T778) from my wife's income which has lower income compare to mine although other software (UFILE) does.

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1 Best answer
Level 11
Oct 30, 2019 12:29:04 AM

Childcare expenses are automatically assigned to the spouse with the lower net income unless otherwise named as an exception.

On the screen titled "Claiming Child Care" in the deductions section, answer No to the question "Does the taxpayer with the higher net income qualify to make the child care claim on their tax return?" to assign the expenses to the spouse with the lower net income.

5 Replies
New Member
Oct 30, 2019 12:29:03 AM

I can not find the "Claiming Child Care" in deduction center. Is there a way you can post the snapshot of that section. Thanks.

Level 11
Oct 30, 2019 12:29:04 AM

Childcare expenses are automatically assigned to the spouse with the lower net income unless otherwise named as an exception.

On the screen titled "Claiming Child Care" in the deductions section, answer No to the question "Does the taxpayer with the higher net income qualify to make the child care claim on their tax return?" to assign the expenses to the spouse with the lower net income.

New Member
Oct 30, 2019 12:29:06 AM

Thanks, I realized this setting is not included in the Free version but the Standard one. Is that correct?

Level 11
Oct 30, 2019 12:29:07 AM

In TurboTax Free, you can also modify the information.
From the higher earning spouse's "Your Taxes" section, delete the form T778.
On the lower earning spouse's T778, leave the box below the statement "Child care expenses claimed on line 214 of the other person’s 2016 return, if any" blank. This box should only have a value if you qualify under special circumstances to assign the childcare credit to the higher earning spouse.

New Member
Oct 30, 2019 12:29:09 AM

So if I delete form T778 from the higher earning spouse's "your taxes" AND leave the box blank on the lower earning spouse's T778, THEN where do I put the child care expense amount that we paid for 2016 so that it actually shows up on the lower earnings spouse's T1, Line 214, as a deduction?