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Does anyone know if you do deductions on your taxes if they subtract that from your income. I pay 11,180 in daycare a year and I claim it on my taxes. Will the lender/underwriter subtract this from my income as an expense? Also say I make 60000 in 2013, switch to a new position in summer of 2013 and have a new salary of 71,000 and apply for a mortgage in 2014. What salary are they going to use, the previous salary or the current salary. Any input will be greatly appreciated.
They look at your current gross income.