Being a daycare provider can be rewarding, but it can also put a strain on your finances. Thankfully, the IRS provides you with some relief in the form of tax deductions and write-offs that you can use to offset your costs.
Here are some of the common deductions used by daycare providers.
- Travel. You can claim travel expenses if you spend time going to classes to help you perform better in your position, or if you take your daycare attendees on field trips. Errands that you go on for your business only and trips to the store for supplies can all be considered travel expenses as long as you keep track of your business miles.
- Supplies. Any items that you use for your daycare, including food, diapers, wipes, and toys can be deducted from your tax return. To make this process easier, make sure that you’re getting those supplies on a separate receipt.
- Capital Purchases. These purchases follow different rules than your supplies do. Purchases like playground equipment, cribs, and other items that cost more than $100.00 and can reasonably be expected to last more than a year can be deducted. Keep them on separate receipts!
- Home Use. If you run the daycare out of your home, you may qualify for deductions for the business use of your home. There are strict guidelines regarding how the specific area of your home may be used, so you may want to consult a professional.
If you have any questions about your available deductions, give Pro Tax Resolution a call in San Antonio today!