There are two kinds of expenses for child care providers, 100% business expenses and shared expenses also known as our time/space percent expenses… things we use in daycare but also share with our families such as toilet paper, paper towels, laundry soap. It would be extremely difficult to calculate how much the daycare uses these items so we calculate a percent. To learn more about Time/Space please click on time/space.
We have many categories, when preparing your tax return it is better not to lump all your expenses into one category this could be considered a red flag.
We suggest using Household Supplies as a category showing items that you would share with your own family, there are thousands of items you could add to this list, a few examples are…
Toilet paper, paper towels, laundry soap, fabric softener, salt for water softener, light bulbs, furnance filters, cleaning supplies
Be sure to claim all the household supplies that you purchase for the year, don’t claim every other one, or every third one purchased, you get a percent of the cost and if you only claim some of them you will short change yourself.
We like to call Supplies our 100% category for things that are not shared with your family, a few examples could be…
Wipes, diapers, crafts and curriculum