Ask TaxMama.Com Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 245        February 6, 2004

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Working On Contract » From: Avon, CO Dear TaxMama: I am a contract laborer as a mental health consultant in preschools. As I am preparing my taxes it doesn't show that I receive a child care credit (I have two children in childcare in order to work) because I did not receive a W-2 but a 1099-MISC. How can I get this credit? Thank you. Julia Hi Julia, Report your 1099-MISC income on Schedule C. Here is the Form from the IRS site. Here are the Instructions. Deduct all your business costs and auto expenses or mileage. You may also qualify for the office in home deduction.   - Form   - Instructions What's left is your profit. Take that profit amount and carry it to line 4 of the Form 2441, the child and dependent care credit form. Be sure to remember to take advantage of the child tax credit, as well. Basically, Julia, if you are getting paid via a 1099-MISC, you're in business. You may want to do some reading about how to handle your business and tax life. Jan Zobel has an excellent book. It's under $10, easy to understand, and provides just the kind of information, tips and ideas you need to identify deductions that apply to you. Minding Her Own Business: The Self-Employed Woman's Guide to Taxes and Recordkeeping You'll love the book. It's really easy to understand. And Jan makes perfect sense. You'll find other helpful information in TaxMama's resources for small business. Best wishes, Eva Rosenberg Your TaxMama

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