Ok here is the situation: My wife works for a company and has day care expenses taken out pretax. Her wages show up on W2, box 1. Her child care benefits show up on W2, box 10. I am self employed and showed a loss in my business last year.
Question 1: On 1040 wages (line 7) do we add her W2 box 1 and 10 together or do we just use line 1? Question 2: Since I took a loss on my business, do I technically have "no earned income", therefore I get no benefit under form 2441? It doesn't seem fair that just because I showed a loss that I don't get a credit for daycare expenses.
Any help would be appreciated, as I can't find the answer to these questions anywhere and the clock is ticking!