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Daycare Providers 2019 Rates by Location Breakfast Lunch, Dinner* Snacks (up to 3)
Income and Continental U.S. $1.31 $2.46 $0.73
Expenses Alaska $2.09 $3.99 $1.19
$1.53
Hawaii
$2.88
$0.86
*Lunch and dinner, allowance for each.
Daycare Business Expenses Business Use of Your Home
All businesses are allowed to deduct expenses that are Part of the cost of maintaining your home may be de-
ordinary and necessary for the business. The following ductible as a business expense.
list is not all inclusive. • You must be in the trade or business of providing day-
care for children, persons age 65 or older, or persons who
Expense Daycare Examples
are physically or mentally unable to care for themselves.
Advertising • Print and online ads.
• Business cards and business logo items, such as • You must have (or be exempt from having) a license or
t-shirts, etc. other approval to operate under state law. If your ap-
Auto Expenses • Business miles (transporting children, shopping, plication was rejected or your license or approval is in
education, meeting with parents, etc.) a revoked status, you do not qualify for this deduction.
• Parking, tolls. Home-related expenses. If you meet the conditions
Bank Charges • Business bank account fees. above, you can deduct the business portion of the fol-
• Check printing fees. lowing home-related expenses.
Dues, • Daycare license, membership in daycare
Publications organization. Deductible Whether or Not You Are in Business:
• Daycare magazines and books for you or the • Real estate taxes and mortgage interest.* • Qualified mortgage insurance
children. • Casualty losses.* premiums, if available.
Education • Daycare seminars and classes. Deductible Only if for Business:
Employee- • Wages, payroll taxes, workers’ compensation, • Homeowner’s insurance and association • Security system.
Related employee benefits. dues. • Utilities and services.
Expenses • Reimbursement of expenses. • Rent (if renting your home). • Depreciation (subject to
• Repairs and maintenance. certain limitations).
Insurance • Business liability insurance.
• Daycare rider on home policy. *Subject to limitation.
Legal and • Attorney for daycare issues. Calculating the home business-use percentage. The
Professional • Accounting and tax preparation fees. business use percentage used in deducting home ex-
Office Supplies • Postage, paper, pens, pencils. penses is based on the number of hours spent on day-
• Record books, calendars. care activities during the year and the area used regu-
Rent • Toy, equipment, DVD rental. larly for daycare compared to the total square footage of
• Building rent (if not operating the daycare in your the home. Provide these numbers to your tax preparer
home). to compute the business use percentage.
Supplies • Business portion of household supplies, such as
cleaning supplies, paper goods, etc.
• Children’s food, supplies, games, toys, crafts, etc.
• Diapers, wipes, spare clothing.
Telephone • Daycare business line.
• Daycare-related extra features added to basic land Contact Us
line.
• Daycare portion of cell phone. There are many events that occur during the year that can affect
your tax situation. Preparation of your tax return involves sum-
Other Expenses • Admission to zoo, museum, events, etc. for children. marizing transactions and events that occurred during the prior
year. In most situations, treatment is firmly established at the
time the transaction occurs. However, negative tax effects can
Daycare Food be avoided by proper planning. Please contact us in advance
Instead of tracking every penny you spend on food for if you have questions about the tax effects of a transaction or
the children or adults in your care, you can use the stan- event, including the following:
dard meal and snack rates. • Pension or IRA distributions. • Retirement.
• Significant change in income or
• Notice from IRS or other
deductions. revenue department.
• Job change. • Divorce or separation.
This brochure contains general information for taxpayers and • Marriage. • Self-employment.
should not be relied upon as the only source of authority. • Attainment of age 59½ or 70½. • Charitable contributions
Taxpayers should seek professional tax advice for more information. • Sale or purchase of a business. of property in excess of
• Sale or purchase of a residence $5,000.
Copyright © 2019 Tax Materials, Inc. or other real estate.
All Rights Reserved

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