Tax Tips for Child Care Providers

Do you care for children in your home?  Well…other than your own, I mean!  Are you taking advantage of the tax breaks that are available to you?  Are you keeping up with your books and recordkeeping?

There are special tax breaks for people who run a childcare business either out of their own home, or in a separate facility.  Some examples include:

  • deducting part of the use of your home
  • specialized rules in terms of income and expenses
  • a program called the Child and Adult Care Food Program (CACFP) which helps provide nutritious meals and snacks for qualified programs.

The IRS is conducting a webinar on June 5, 2012 to discuss these issues.  The webinar will be archived on the site after June 5th.

The rules for the deductions can be complex — for example, if the children play outside in your yard, then the expense of maintaining the yard, such as the amount charged by a lawn mowing service can be partially deducted.  It’s the “partially” part that can get sticky.  If you need help, please give our office a call at 770-478-7424, even if you are not in the Atlanta area.  We are experts in helping small businesses save on taxes!

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Please note that we will only post things that are from official sources and have been passed into law. We will not post any information about pending legislation.