Research suggests that poverty impacts cognitive development early, as an economic achievement gap is evident prior to entry into primary school. This study examined 95 low- and middle-income parent-child dyads micro-analytically to test for income related differences in patterns of parent-child interaction during a standardized pretend play task. Sequential analysis suggested differences in parent-child contingency, with middle-income dyads evidencing stronger contingency relationships between parent and child behavior. Importantly, sequential analysis also showed that middle-income infants spend significantly more time in mutual pretend play with parents than low-income 12-month-olds. A full test of the mediation model using a micro-level measure of parent-child interaction as a mediator yielded insignificant results.