Child Care Expense

Hi June,

I ordered your book yesterday and can't wait till it arrives.

Question: My spouse and I deduct for child and dependent care expenses for our joint return. The care providers were out of the home, primarily day care or day camp facilities. I have also used someone to care for my children after school in our home, while I am working in my home office until my spouse gets home to take over the care. Is this expense deductible for my business. I wouldn't double count it of course for both my business and the child and dependent care expense IRS form 2441.

Thanks,
Dan
Atlanta, GA


Hello Dan,

Doesn't matter where child care takes place -- in or out of the home. It is deductible on your tax return if both spouses have income and if it is legitimately paid. In other words paying the babysitter "off-the-books" does not get you a deduction.

Child care is not a business deduction.

Were you a corporation there are some provisions for deducting child care. However, child care alone is not a reason to incorporate.

Best,
June