How to Deduct Tax from Our Daycare Supplies

How to Deduct Tax from Our Daycare Supplies

Most of us may think that there is no chance for us to deduct tax from daycare supplies. Commonly we think that only large business that possible to get the deduction. In fact, even a small home daycare business also possible to get deduction if they know which part that possible to write off. Basically, any space or thing that we use for our daycare business then it can be deducted. What we need to do is to understand which part that is possible to deduct and take a look at others that may also can save our money. So what kind of daycare supplies that can be written off from the tax form? There are various types of supplies start from cleaning, first aid, learning supplies and office equipment. Not only that, other kinds of supplies that also include on the list are toys, food serve, household and training material. A lot more daycare supplies are possible to be deducted from tax list. Those are sanitation supplies like hand soap, wipes, diaper and utensil like bottles and eating utensil. If we are sharing the supplies for both household and daycare business then we can use the time space percentage to calculate.

Time space percentage will be useful for us to calculate the tax if we use the same kind of daycare supplies for our household and daycare needs. We need to count how much we use certain supplies for daycare and home activity. From this calculation, we can get the amount of share expense that possible to deduct. So how to do this calculation of time space calculate method? Firstly, we should divide the hours of our home for daycare usage by the whole total number of hours in one year to get your time percent. After that, find out your space percent by divide the square footage that used for your daycare business by the total square feet of your whole home.  Multiply the two numbers that we get to get the time space percentage. The food that we provide for our daycare supplies also can be deducted from the tax. If we are already joining the government sponsored food program then the deducted amount is just for the food that exceed the reimbursement amount. Commonly, daycare supplies that related with children nutritional intake consist of breakfast, lunch and snack in the afternoon.

Do not forget to categorize the daycare supplies based on the one who used totally for the daycare business and the other that shared as household needs. It is important to remember to make it into those two classifications even though we can simply put the cleaning, toys and food into the day care supplies expense but it will be easier to count shared percentage if we make it strictly based on those two classifications. Another essential thing to do is make a good record of all expense receipts. Not only keeping the receipt for daycare supplies but also the cost for home impairment, cleaning and home maintaining. The record keeping should also include the meal that we served especially for those who do not reimbursement by the governmental food program. If you want to get the most effective counting if the time space percentage then it is better to track the hours of our home usage at least two months. When we are calculating the time percentage, do not only count based on the opening and closing hour but also including the time that we spent to cleaning our daycare supplies, make an activities plan and recording all the receipt.

The thing that has to remember when we are counting the space percentage of our home usage then we should count it based on the area that really use for the child care business. So it means that if we used those places for any other activities then we will lose the chance to deduct it from our tax list. Another type of expense that can be deducted from the tax is the utilities and daycare supplies that we used during the daycare business. The utilities will be includes any kind of daycare supplies needed like telephone, water, electricity and gas bills. Sometimes we think that we need to make some renovation of our home for the daycare needs. The cost for renovation can be also deducts for our task. The kind of daycare supplies inventory expense that commonly occur  during the renovation process is painting the wall, change the wallpaper,  add the light features or even install the air conditioner. One tip that we can do is separate the food that we are using for daycare and household when we are shopping. It will make us easier to get separated daycare supplies receipt. Do the same thing on furniture purchasing and toys. Do not forget to also include the expense of outdoor play equipment, sanitizing and art supplies into tax deduction list.

Nowadays, it is common to see that there are many daycares that build a website to advertise their service. The expense that spends for site maintenance should be well record because it can be included in tax deduction. The expenses that can be inputted consist of the hosting, domain name, updates and internet access. Be sure that we have also kept the expense record in a complete form because it is used for daycare supplies deduction. The next possible deduction is the mileage use for the daycare business. It means that we should count any mileage that we spend for transporting the children during the daycare program. Going to the store for buying any daycare supplies and training classes also count in this mileage. However, the mileage will be functioning if we can make a complete record including the dates. Sometimes we are also joining some groups for daycare group membership or join any training program to add our knowledge dealing with the daycare business whether it is a preschool, home or daycare centre. In fact, this kind of expense can be input in our deduction list. It includes any expense for CPR, first aid, child care, child abuse and many types of daycare improvement. So basically, there are many things that can be deducted beside the daycare supplies expense.