Taxes Food and Other

[mduck]

I've tried to search posts to get my answers but haven't been able to piece together anything to really get an answer for my specific need so here goes. I am not licensed. I only watch one child part time. I guess it would be considered part time? DCM works differ shifts each week so she lets me know her schedule the fri before each week. Dcg is here 4 days max per week, but is here mostly 3 days per week. I charge a flat daily rate to keep things super simple. She is here between 4 to 9 hours per day.

What can I do tax wise that will help with costs? I realize I am not the norm having only 1 child and that child being only part time. That being the case I am not sure that I can realistically expect to get a tax break. I do have children of my own at home so anything that dcg uses is used by my other children. I do not have a separate space just for daycare. We use an open space (living, dining, kitchen area plus I leave a door open most times for her to play in my baby's room which is off of my dining room.

I think my question is mostly based on food. Right now dcg is 1 and is still eating baby snacks, milk, and baby food brought in by parents. I DO give her other things that she sees my children eating and seems to want like whole wheat bread and spaghetti (she ate an early supper with us). I wasn't sure how to broach the subject with the parents about increasing the daily rate if/when I start to provide foods. I really didn't want to do that if I could find a way to get a tax break that would take care of it altogether. I'm not interested in doing any sort of food program. I know there is a standard formula that was mentioned of a certain dollar amount per meal/snack? But wasn't sure what applies to my situation. I'd appreciate any advice.

[TomCopeland]

unlicensed

I've tried to search posts to get my answers but haven't been able to piece together anything to really get an answer for my specific need so here goes. I am not licensed. I only watch one child part time. I guess it would be considered part time? DCM works differ shifts each week so she lets me know her schedule the fri before each week. Dcg is here 4 days max per week, but is here mostly 3 days per week. I charge a flat daily rate to keep things super simple. She is here between 4 to 9 hours per day.

What can I do tax wise that will help with costs? I realize I am not the norm having only 1 child and that child being only part time. That being the case I am not sure that I can realistically expect to get a tax break. I do have children of my own at home so anything that dcg uses is used by my other children. I do not have a separate space just for daycare. We use an open space (living, dining, kitchen area plus I leave a door open most times for her to play in my baby's room which is off of my dining room.

I think my question is mostly based on food. Right now dcg is 1 and is still eating baby snacks, milk, and baby food brought in by parents. I DO give her other things that she sees my children eating and seems to want like whole wheat bread and spaghetti (she ate an early supper with us). I wasn't sure how to broach the subject with the parents about increasing the daily rate if/when I start to provide foods. I really didn't want to do that if I could find a way to get a tax break that would take care of it altogether. I'm not interested in doing any sort of food program. I know there is a standard formula that was mentioned of a certain dollar amount per meal/snack? But wasn't sure what applies to my situation. I'd appreciate any advice.

I assume you are not in violation of your state child care licensing law and can care for one child without a license. If so, you can deduct all the same expenses as a licensed provider. This includes a portion of your house expenses (property tax, mortgage interest, house insurance, house repairs, utilities, and house depreciation). You can also deduct a portion of toys, supplies, etc.

You can use the standard meal allowance rate to deduct food expenses: $1.28 breakfast, $2.40 lunch/supper and $.71 snacks.

[mduck]

Thank you for responding to my question. I am going to risk sounding extremely ignorant here BUT I didn't know that I would be required to check with anyone if someone asked me to watch their child for pay. I guess because I only watch one and at that, part time, I saw it somewhat as a babysitting job though I do realize it is a bit more involved than say a teenager filling for date night. I would never do anything illegal or under the table knowingly.

I planned to pay taxes and didn't know what kind of breaks I could receive especially since it is a part time situation. Is there some where I could check to make sure I'm doing nothing illegal? Also on the meal deduction, do I just keep a simple time in/ time out sheet and fill it out myself( or does DCM need to sign in and out on it) to track hours here to justify # of meals and snacks? Do you get $ for $ back in taxes? Meaning if snack is at .71 per snack, will I get that same amount back in taxes if I count it? I'm particularly interested in meals/snacks because I would rather get $ back than to up the fee for food. Where would I claim the total food amount. I've got my bachelors in business, but you'd never know it sorry about all the random questions.

[mduck]

just checked

Hi Mr. Copeland,
I just checked ky state regs and it looks like (from what I can tell) that I am not required to be licensed or certified. Whew!

[TomCopeland]

unlicensed

Thank you for responding to my question. I am going to risk sounding extremely ignorant here BUT I didn't know that I would be required to check with anyone if someone asked me to watch their child for pay. I guess because I only watch one and at that, part time, I saw it somewhat as a babysitting job though I do realize it is a bit more involved than say a teenager filling for date night. I would never do anything illegal or under the table knowingly.

I planned to pay taxes and didn't know what kind of breaks I could receive especially since it is a part time situation. Is there some where I could check to make sure I'm doing nothing illegal? Also on the meal deduction, do I just keep a simple time in/ time out sheet and fill it out myself( or does DCM need to sign in and out on it) to track hours here to justify # of meals and snacks? Do you get $ for $ back in taxes? Meaning if snack is at .71 per snack, will I get that same amount back in taxes if I count it? I'm particularly interested in meals/snacks because I would rather get $ back than to up the fee for food. Where would I claim the total food amount. I've got my bachelors in business, but you'd never know it sorry about all the random questions.

You don't need parents to sign in and out, you can keep your own records to track meals. When you deduct $.71 for a snack, this will reduce your taxable income by $.71. It won't reduce your taxes by $.71. Here's an example: Your income is $5,000. All of your expenses total $1,000. You will owe taxes on $4,000.

If your business expenses are equal to your business income, you won't have any profit and won't owe any taxes.

[mduck]

Got it. Thanks again!