I have a follow-up question on your dependent care question and answer in the January 2009 issue of Tax Reduction Letter, Vol. 18, No. 1. To make this clear, let’s assume the following facts:

The husband is a sole proprietor with a net income of $100,000 on his Schedule C.

The wife is a stay-at-home mom with three children under age 6.

The wife has no earned income.

The couple spends $6,000 on child care during the year.

With this situation, this couple gets zero ... Log in to view full article.