A tax professional can provide insight on special tax deductions

I just received a license to open an in-home daycare, are there any special tax deductions related to my business?

 

outstanding tax bill

Laura Hackney, CPA

There are two tax deductions that are computed in a unique way for in-home daycare providers.

The first is related to the food costs for meals provided to children. The IRS provides standard meal and snack rates that you can use instead of tracking actual costs. 

The second is related to the business use of your home. This is different from the typical business use of the home, in that the space in question can be used for business and personal use at different times of the day. 

There are also special rules regarding how to compute the business use for an in-home daycare business that are beyond the scope of this space. 

As in most cases, you should consult a tax professional to establish a plan of how to track and deduct these two particular tax deductions.