What can be Written Off from Daycare Tax?
Daycare tax is one of responsibility of daycare provider. Since daycare expense is seems endless, it will be great if you can find several thing that can be written off from the tax. The tax form itself will be vary depend on the type of daycare business. In fact, the form and amount of the tax for home daycare will be different with daycare center. However, there are always several things in common that can be written off from the daycare tax.
Here are several items that can be written off from your daycare tax:
Toys and Equipment
Toys are one of important daycare supplies to support children development and boost the educational process. Any type of toys that you provide and use for daily daycare activity is possible to be put on the daycare tax deduction. Another thing that also can be written off is the equipment. The example for this is the vehicle and travel expenses. If you are using certain vehicle to take daycare children out the any operational and maintenance can be written off from daycare tax.
Home that used for daycare business
If you use your home as daycare business then you are possible to put it into your daycare tax deduction list. There are various possible deduction like rent cost, insurance, repair, mortgage interest and utilities. The amount of deduction itself will be vary depend on the calculation of percentage of home that is used for daycare business. You can have this daycare tax deduction only if your home is the main area for daycare business and do not have other fixed location outside.
One of daycare biggest expense is food. It makes food becomes essential element in daycare business. The deduction of daycare food supplies from daycare tax refer to any kind of food that is consumed by daycare children. Be sure that you keep all of the receipt from the grocery to make sure that those items will be really used for daily daycare business. To make it easier, you can separate the grocery items between your daycare needs and family items.
If you are the employee of daycare provider then you are possible to input the daycare employees cost into daycare tax deduction. The deduction itself will be including salary, insurance, vacation and benefit. If you are also reimburse the cost of your staff mileage expense then you are also allowed to put the reimbursement amount into your daycare tax deduction. Besides that, you may also include the loan, pay in advance and fringe benefit into your daycare tax deduction.