Sunday, February 1, 2009

Childcare is not a business expense.

Hello June -

I started a home business 1 1/2 years ago in Forest Park, IL. I hand paint wood items for kids rooms (plaques, frames, etc...)

I was wondering if I can deduct my babysitting expenses? I spent approx. $1200 last year for a babysitter to watch my son while I worked.

I just found your website. I plan to go pick up your book this week!


Forest Park, IL

Dear Kelly,

Babysitting cannot be deducted as a business expense.

You may be eligible for a childcare tax credit if the following two conditions apply:

-- You have a profit from your indie business or you have earned income from a job. If you are married then your spouse must also have earned income.

-- Your sitter or daycare must be legitimate. If it's a service or school you will need an employer identification number. If you pay a babysitter then you must have a social security number for your sitter and the sitter must claim the income.

If you are a budding indie then you will find my book, Self-employed Tax Solutions useful. The least expensive place to purchase it is right here.


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