Family Child Care
Hi! I've created these child care tax help pages to help child care providers with their income tax deductions and tax returns. So many providers, especially new ones, ask me and others how to go about doing their daycare taxes. When I began my family child care business back in 1991, tax accounting really confused me. I'm hoping that with the knowledge I have now I can help others set up a tax filing system that won't overwhelm them.
Please let me start by saying that I'm NOT an expert in daycare tax preparation. That being said, I cannot guarantee that everything on these pages are absolutely correct. Tax laws change. People give wrong information. And so on. If you know of anything here that is not correct, please send me an email and let me know about it. Likewise, if you'd like to add something to what I have here, I'd also like to know about it.
Let's begin. You need to choose some sort of daycare accounting method. It really doesn't matter which way you choose as long as you are consistent and thorough. You have 2 choices. You can do your accounting the old-fashioned way by hand or you can purchase and use a software program. I've listed some of them below. I use the print version of Calendar-Keeper and do mine by hand with this workbook and a pen and pencil. You can purchase Calendar Keeper inexpensively through Redleaf Press or order below with Amazon. Calendar Keeper is a 12-month calendar and record keeper. It is all inclusive.... you can use it to keep track of your actual daycare hours, extra hours, mileage, and all expenses incurred. The name of what you are looking for is: "Redleaf Calendar-Keeper 2017: A Record-Keeping System for Family Child Care Providers."
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Once you've chosen a tax record keeping method, you have another decision to make. You can elect to hire an accountant to do your taxes each year or you can do them yourself. Personally, I keep thorough records and then hire an accountant who is familiar with child care taxes to actually do the proper forms (because those confuse me). It is important, that if you hire an accountant, you choose one who knows what they are doing when it comes to child care taxes. Don't just assume they know what they are doing, do your homework and ask them how many child care tax returns they've done over the past 3 years. It will cost you somewhere between $130 and $160 (or more) for an accountant depending upon where you live. The fee you pay your accountant is 100% tax deductible. Here is an excellent article to aid you in locating an accountant that is right for you.
Finding a Tax Preparer
Now that you've choosen a recordkeeping method and have decided whether or not you will hire an accountant, it's time to talk about how you go about keeping track of your actual records. Click on the "5 Steps" Link below to get started!
Click above to get started!
Below you will find a page of Frequently Asked questions regarding child care taxes and also a page of helpful links!
Where would you like to go now?
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