I have a 1099 for $24,850 in 06 I paid child care of $5,165 Will I get to deduct that full amount?

Answer 1

I assume you are self-employed with gross income of $24,850 before expenses are deducted.

Fill out form 2441 to figure your credit for dependent care expenses. The income used to figure the credit will be your net income from self-employment, minus the adjustment for social security and medicare.

If you have no other income or adjustments, this amount is your adjusted gross income.

Your credit against taxes owed will be between 20% and 35% of your dependent care expenses, up to $3,000 for one child and $6,000 for two children.

Answer 2

Probably so.