Working from home affords you many luxuries, including being able to spend time with your children on a regular basis. Running an in-home daycare is often a great way to be able to make money from home and still be able to take care of the daily things that need to be done to keep a home running smoothly. If you own a home daycare, it is important to plan ahead for when you need to file your taxes. There are many deductions that are available to you, if you properly document them. Use the following guide to learn a few things that you may be able to deduct from your taxes.
When you run a daycare, you will be responsible for feeding the children through the day. If you supply the food that the children eat, the cost of those foods can count as a deduction from your taxes because they are necessary in order for you to be able to do your job. Keep receipts for items that you buy for your daycare separate from the receipts you have for food that you buy for your family.
Toys, diapers, and wipes will all be necessary in order for you to be able to do your job as a daycare provider properly. You want to be sure that you document how much of each item you bought, when you bought it, and when it was used, if possible. This will allow you to track that the supplies you are claiming are truly for your business and not for your own children.
A portion of the costs that you pay each month to heat and cool your home can be deducted from your taxes. If the home is not kept at a comfortable temperature, the children will not be able to be comfortable during the day. The size of the space used for the daycare will be taken into account and the amount the accountant determines is used to heat and cool the space will be able to be deducted.
You will need to childproof your home to ensure that no children get injured while they are in your care. The costs associated with childproofing a home can be quite significant. Keep receipts for everything you do or have done to your home to make it a safer environment for children.
Once you have gathered all of the receipts that prove what money has been spent on your daycare, you need to submit all of the information to your accountant. He or she will be able to file all of the necessary deductions to get you as much as they possibly can for your tax return. These few deductions could end up saving you a ton of money on your taxes and are not overly difficult to get.
Talk to experts like Alexander & Associates CPA for more information.