Tax Deductions for Child Care Providers

Child-care providers use tax deductions not only to offset the amount of the tax bill but as an indirect way of recouping the expenses needed to run a day care. Child-care providers can take deductions for things that are specific to their profession.

Food

Child-care providers can deduct the cost of food bought to feed the children. These items are tax deductible because they are required by law to run a child-care service.

Education and Supplies

In addition to printer paper and pens, child-care providers can deduct the cost of craft supplies and those needed for other activities. This includes books, software and anything else required to educate the children. Field trip expenses, as well as DVDs, VCRs and TVs are also tax deductible and depreciable.

Equipment

Deductions include swing sets, cribs, infant swings, car seats, highchairs and other specialty items required to care for the children.

Housing

Home day-care providers can also deduct a percentage of their housing expenses: utilities, rent, insurance and mortgage.

Gifts

Any birthday and Christmas gifts bought and given to the children can be a tax deduction. The gift must be for a child that is receiving the child-care's services.

References

• Tax Deductions for Child Care Providers
• Basic Deductions