Day Care Tax Deductions

Do you run a daycare out of your home? If so, you might be eligible for daycare tax deductions. A daycare is a business, and every business has expenses. Save all your receipts for every purchase and talk to your tax professional to see what is deductible. Write off every expense you can to save money on your tax bill.

Location

Calculate how much of your home is used for your daycare. You should have a set area used only for your business. All the expenses for maintaining that area should be tax-deductible. This includes mortgage or rent payments and utilities.

Food

All the food used in your daycare should be tax-deductible. This can include employee meals also. It might help to have a separate area set aside just for your daycare food. Check the link below for more specific information.

Toys or Books

Any toys or books purchased for your daycare should be tax-deductible. These supplies are needed to run your business.

Fees or Licenses

If your state requires you to get a license to run a daycare out of your home, those fees may be tax-deductible.

Travel

If you need to drive to pick up kids, your vehicle expenses might be tax-deductible. Track your mileage. Don't forget your car registration, insurance and any extra car seats needed.

Resources

• IRS.gov