Daycare.com Forum
Daycare and Taxes>Do I Need To Keep Non-Daycare Related Receipts?
Crazy8 05:28 AM 08-12-2015
I thought I remember when I started daycare someone saying that I should save ALL receipts, even if they weren't daycare related but as I go thru tons of old paperwork I am wondering if that is really necessary??
permanentvacation 06:23 AM 08-12-2015
That depends on what you think are not daycare related receipts.
Since you work out of your home, you can write off things like your electric bill, mortgage/rent, and any other household bills like those. You can write off a certain percentage of those bills according to your time/space calculations.
You can also write off any receipt related to errands for daycare such as (you have to chose) either gasoline or mileage expenses, buying your meal while you shop for daycare related items, if you have a meal out and discuss daycare related things (a lunch/dinner meeting with your daycare helper or some people actually interview possible clients over a meal out to see how the kids will behave when eating).
My accountant and I (since learning this from my accountant) suggest using EVERY room in your house for daycare. Even if that room isn't licensed for the children to go in, use every room for something related to daycare. Such as the den is your 'daycare office', store extra toys, extra daycare blankets, extra playpens, whatever you have, spread it out into each room of your house. That way, you can include those rooms in your time/space calculations. And, if you decide to paint or redecorate your daughter/son/your bedroom, you can write off a portion of the paint and redecorating supplies. If you have to repair anything in those rooms, you can write off a percentage of the repairs.
Do you pay anyone to cut your lawn, shovel your snow, do landscape, etc.? If so, get and keep receipts from them. You can write those expenses off. If you get any work done to beautify, remodel, repair, redecorate the inside or outside of your home/yard, you can write the fee for the workers plus the price of the tools and items used for the work.
Honestly, almost everything I spend money on, I can find a way to legally write that item off for daycare.
I would suggest that you talk to an accountant or maybe a couple of accountants. See if you can find one that specializes in In Home Daycare or at least in small home businesses. Once you find a good accountant, he/she should tell you all the information I told you and maybe have some other suggestions for you. I did daycare for a couple of years before I found an accountant who specialized in home daycare. For our first meeting, she told me she ALWAYS goes to the daycare providers' home to look around and give advice on how they should organize their home to have the best tax advantages. She literally walked through my entire home, counted the rooms, asked what daycare items I had in each room and if I told her 'none', she would make suggestions on items that I should put into each room. She also told me about the time/space calculations and told me to write off my household bills, repairs, remodeling, redecorating, maintenance, lawn service, and other expenses.
So yes, I would suggest that you keep ALL of your receipts at least until you talk to a good accountant who specializes in small home businesses or preferably home daycares and are told by him/her what you can and can't write off.
Since you work out of your home, you can write off things like your electric bill, mortgage/rent, and any other household bills like those. You can write off a certain percentage of those bills according to your time/space calculations.
You can also write off any receipt related to errands for daycare such as (you have to chose) either gasoline or mileage expenses, buying your meal while you shop for daycare related items, if you have a meal out and discuss daycare related things (a lunch/dinner meeting with your daycare helper or some people actually interview possible clients over a meal out to see how the kids will behave when eating).
My accountant and I (since learning this from my accountant) suggest using EVERY room in your house for daycare. Even if that room isn't licensed for the children to go in, use every room for something related to daycare. Such as the den is your 'daycare office', store extra toys, extra daycare blankets, extra playpens, whatever you have, spread it out into each room of your house. That way, you can include those rooms in your time/space calculations. And, if you decide to paint or redecorate your daughter/son/your bedroom, you can write off a portion of the paint and redecorating supplies. If you have to repair anything in those rooms, you can write off a percentage of the repairs.
Do you pay anyone to cut your lawn, shovel your snow, do landscape, etc.? If so, get and keep receipts from them. You can write those expenses off. If you get any work done to beautify, remodel, repair, redecorate the inside or outside of your home/yard, you can write the fee for the workers plus the price of the tools and items used for the work.
Honestly, almost everything I spend money on, I can find a way to legally write that item off for daycare.
I would suggest that you talk to an accountant or maybe a couple of accountants. See if you can find one that specializes in In Home Daycare or at least in small home businesses. Once you find a good accountant, he/she should tell you all the information I told you and maybe have some other suggestions for you. I did daycare for a couple of years before I found an accountant who specialized in home daycare. For our first meeting, she told me she ALWAYS goes to the daycare providers' home to look around and give advice on how they should organize their home to have the best tax advantages. She literally walked through my entire home, counted the rooms, asked what daycare items I had in each room and if I told her 'none', she would make suggestions on items that I should put into each room. She also told me about the time/space calculations and told me to write off my household bills, repairs, remodeling, redecorating, maintenance, lawn service, and other expenses.
So yes, I would suggest that you keep ALL of your receipts at least until you talk to a good accountant who specializes in small home businesses or preferably home daycares and are told by him/her what you can and can't write off.
DaveA 06:39 AM 08-12-2015
In a nutshell, yes keep them all. Had an accountant tell me years ago "Better to have and need not than need and have not."
TomCopeland 08:53 AM 08-12-2015
Originally Posted by Crazy8:
I thought I remember when I started daycare someone saying that I should save ALL receipts, even if they weren't daycare related but as I go thru tons of old paperwork I am wondering if that is really necessary??
I agree completely with the above two responses!I thought I remember when I started daycare someone saying that I should save ALL receipts, even if they weren't daycare related but as I go thru tons of old paperwork I am wondering if that is really necessary??
daycarediva 11:27 AM 08-12-2015
Originally Posted by permanentvacation:
That depends on what you think are not daycare related receipts.
Since you work out of your home, you can write off things like your electric bill, mortgage/rent, and any other household bills like those. You can write off a certain percentage of those bills according to your time/space calculations.
You can also write off any receipt related to errands for daycare such as (you have to chose) either gasoline or mileage expenses, buying your meal while you shop for daycare related items, if you have a meal out and discuss daycare related things (a lunch/dinner meeting with your daycare helper or some people actually interview possible clients over a meal out to see how the kids will behave when eating).
My accountant and I (since learning this from my accountant) suggest using EVERY room in your house for daycare. Even if that room isn't licensed for the children to go in, use every room for something related to daycare. Such as the den is your 'daycare office', store extra toys, extra daycare blankets, extra playpens, whatever you have, spread it out into each room of your house. That way, you can include those rooms in your time/space calculations. And, if you decide to paint or redecorate your daughter/son/your bedroom, you can write off a portion of the paint and redecorating supplies. If you have to repair anything in those rooms, you can write off a percentage of the repairs.
Do you pay anyone to cut your lawn, shovel your snow, do landscape, etc.? If so, get and keep receipts from them. You can write those expenses off. If you get any work done to beautify, remodel, repair, redecorate the inside or outside of your home/yard, you can write the fee for the workers plus the price of the tools and items used for the work.
Honestly, almost everything I spend money on, I can find a way to legally write that item off for daycare.
I would suggest that you talk to an accountant or maybe a couple of accountants. See if you can find one that specializes in In Home Daycare or at least in small home businesses. Once you find a good accountant, he/she should tell you all the information I told you and maybe have some other suggestions for you. I did daycare for a couple of years before I found an accountant who specialized in home daycare. For our first meeting, she told me she ALWAYS goes to the daycare providers' home to look around and give advice on how they should organize their home to have the best tax advantages. She literally walked through my entire home, counted the rooms, asked what daycare items I had in each room and if I told her 'none', she would make suggestions on items that I should put into each room. She also told me about the time/space calculations and told me to write off my household bills, repairs, remodeling, redecorating, maintenance, lawn service, and other expenses.
So yes, I would suggest that you keep ALL of your receipts at least until you talk to a good accountant who specializes in small home businesses or preferably home daycares and are told by him/her what you can and can't write off.
That depends on what you think are not daycare related receipts.
Since you work out of your home, you can write off things like your electric bill, mortgage/rent, and any other household bills like those. You can write off a certain percentage of those bills according to your time/space calculations.
You can also write off any receipt related to errands for daycare such as (you have to chose) either gasoline or mileage expenses, buying your meal while you shop for daycare related items, if you have a meal out and discuss daycare related things (a lunch/dinner meeting with your daycare helper or some people actually interview possible clients over a meal out to see how the kids will behave when eating).
My accountant and I (since learning this from my accountant) suggest using EVERY room in your house for daycare. Even if that room isn't licensed for the children to go in, use every room for something related to daycare. Such as the den is your 'daycare office', store extra toys, extra daycare blankets, extra playpens, whatever you have, spread it out into each room of your house. That way, you can include those rooms in your time/space calculations. And, if you decide to paint or redecorate your daughter/son/your bedroom, you can write off a portion of the paint and redecorating supplies. If you have to repair anything in those rooms, you can write off a percentage of the repairs.
Do you pay anyone to cut your lawn, shovel your snow, do landscape, etc.? If so, get and keep receipts from them. You can write those expenses off. If you get any work done to beautify, remodel, repair, redecorate the inside or outside of your home/yard, you can write the fee for the workers plus the price of the tools and items used for the work.
Honestly, almost everything I spend money on, I can find a way to legally write that item off for daycare.
I would suggest that you talk to an accountant or maybe a couple of accountants. See if you can find one that specializes in In Home Daycare or at least in small home businesses. Once you find a good accountant, he/she should tell you all the information I told you and maybe have some other suggestions for you. I did daycare for a couple of years before I found an accountant who specialized in home daycare. For our first meeting, she told me she ALWAYS goes to the daycare providers' home to look around and give advice on how they should organize their home to have the best tax advantages. She literally walked through my entire home, counted the rooms, asked what daycare items I had in each room and if I told her 'none', she would make suggestions on items that I should put into each room. She also told me about the time/space calculations and told me to write off my household bills, repairs, remodeling, redecorating, maintenance, lawn service, and other expenses.
So yes, I would suggest that you keep ALL of your receipts at least until you talk to a good accountant who specializes in small home businesses or preferably home daycares and are told by him/her what you can and can't write off.
One of the BIGGEST perks of daycare is in the taxes!
permanentvacation 11:51 AM 08-12-2015
Daycarediva,
Yes it is! I'm constantly saying, "That's fine, I can write it off."!
Yes it is! I'm constantly saying, "That's fine, I can write it off."!
Crazy8 01:50 PM 08-12-2015
I'd say 90% of my purchases are not daycare related - not in my eyes anyway. I don't see how I could consider redecorating my child's room as a daycare expense??? My own kids are older and my daycare has been well established for many years with toys and stuff that I rotate so I just don't find I spend a lot on the daycare itself these days. So I have hundreds of receipts but very few seem to be for daycare. I do have all utilities bills, etc. that would be used with my time/space percentage and I keep my grocery store receipts just for the paper goods I use - I use the standard rate for snacks, not actual food expenses (I don't provide lunch).
kitykids3 01:45 PM 08-14-2015
I think I read somewhere that we have to keep all non-daycare food receipts, so I do that. I think it is to prove the distinction. I keep all my other 'personal' receipts anyways just to be safe and most of the stuff I buy I deduct.
TomCopeland 10:06 PM 08-14-2015
Originally Posted by kitykids3:
I think I read somewhere that we have to keep all non-daycare food receipts, so I do that. I think it is to prove the distinction. I keep all my other 'personal' receipts anyways just to be safe and most of the stuff I buy I deduct.
If you use the standard meal allowance rate you do not need to keep any food receipts. If you use the actual food cost method you must keep all business and personal food receipts.I think I read somewhere that we have to keep all non-daycare food receipts, so I do that. I think it is to prove the distinction. I keep all my other 'personal' receipts anyways just to be safe and most of the stuff I buy I deduct.
Preschool/daycare teacher 08:25 AM 09-17-2015
Originally Posted by TomCopeland:
If you use the standard meal allowance rate you do not need to keep any food receipts. If you use the actual food cost method you must keep all business and personal food receipts.
Would I need to keep track of which meals I have a child then and which child(ren) it was to do the standard meal allowance? And do I need proof they were here those meals, or would my own records count (without a parent signature or anything else "proving" my records are correct)?If you use the standard meal allowance rate you do not need to keep any food receipts. If you use the actual food cost method you must keep all business and personal food receipts.
TomCopeland 02:38 PM 09-17-2015
Originally Posted by Preschool/daycare teacher:
Would I need to keep track of which meals I have a child then and which child(ren) it was to do the standard meal allowance? And do I need proof they were here those meals, or would my own records count (without a parent signature or anything else "proving" my records are correct)?
Keep attendance records showing how many children and who was there for how long each day. Keep a daily record showing how many meals/snacks you served each day to each child. That's all the proof you need. No food receipts are needed.Would I need to keep track of which meals I have a child then and which child(ren) it was to do the standard meal allowance? And do I need proof they were here those meals, or would my own records count (without a parent signature or anything else "proving" my records are correct)?