My wife is going back to work in August. At that point we will be paying
$400 month for child care. Can that be deducted to get our adjusted gross income for
a USDA Guaranteed Loan? My son is 9 months old right now and my wife is not working so we are not paying day care at this point but this is what can be reasonably expected to be paid by us in the next 12 months.This is straight formthe USDA web site RD 1980d:
§1980.348 Adjusted annual income.
Adjusted annual income is annual income as determined in §1980.347 of
this subpart less the following:
(a) A deduction of $480 for each member of the family residing in the
household, other than the applicant, spouse, or coapplicant, who is:
(1) Under 18 years of age;
(2) Eighteen years of age or older and is disabled as defined in
§1980.302(a) of this subpart; or
(3) A full-time student aged 18 or older.
(b) A deduction of $400 for any elderly family as defined in
§1980.302(a) of this subpart.
(c) A deduction for the care of minors 12 years of age or under, to the
extent necessary to enable a member of the applicant/borrower's family
to be gainfully employed or to further his or her education. The
deduction will be based only on monies reasonably anticipated to be paid
for care services and, if caused by employment, must not exceed the
amount of income received from such employment. Payments for these
services may not be made to persons whom the applicant/
borrower is entitled to claim as dependents for income tax purposes.
Full justification for such deduction must be recorded in detail in the
loan docket.
Kenny
> Thanks
