dianakcpa Posted April 2, 2014 Report Share Posted April 2, 2014 Have a couple with dependent care expenses of $6,300 with $4,500 coming from salary. One individual has a salary the other one has $48,000 in a stipend that is considered a fellowship. This income is not subject to self-employment tax and therefore it doesn't seem to be considered earned income for the dependent care credit. And therefore the $4,500 is being added to income. Am I missing something or is there a way of them being eligible for the credit. Thanks for any help. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted April 2, 2014 Report Share Posted April 2, 2014 Could the one with the fellowship be considered a full time student? If so, he or she would be considered to have earned income. If not, and if the fellowship money doesn't qualify the individual, they are probably out of luck. 'Cause I don't think anyone with that large a grant could be considered physically or mentally incapable of self-care. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.