form 2441 child care credit

[bogwhan]

I have a family. The wife's W-2 is $64229 the husband has a W-2 for $11040 and a Sch F loss <$11017>. The couple paid $1620 for childcare to a qualified childcare facility. When we process the childcare pmt the family is getting a child care credit of $5. This is based on $23 of earned income for the father @ 20% which is based on the childcare qualified expenses being calculated @ $1597 as per line 2 page 1 of the 2441. Don't understand why basically the childcare expense would be disallowed. In order to do the farming and have the $11017 loss they had to place the child in daycare. Is there s sensible explanation?

[Just-Lisa-Now-]

It uses overall earned income for each person, not sure if that's considered sensible or not.

Maybe you've got some farm assets put into place that you could tailor the depreciation on so the loss isnt as large for 2019?

[bogwhan]

Thank you. My client did not buy any new farm equipment in 2019 so farm equipment depreciation is all determined from prior year depreciation schedules.