Question

Tax situation change due to spouse starting a home day care

Forum|Forum|2 years ago
October 25, 2023
2 replies
0 views

Does turbotax support filing for a home day care business and claim the allowed expenses ? Does turbox tax guide me througth the specific expenses which could be claimed towards home day care expenses ?

Ask the Experts - Extension - Sept 2023

EleanoreS

Good afternoon maheshpujara,

Congratulations to your spouse on starting a home daycare.

TurboTax supports filing for a home daycare business and helps you claim all of the expenses you are entitled to including business use of home .

Thank you for reaching out to the TurboTax Community

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

M

maheshpujaraAuthor

Thanks I have two of follow-up questions regarding the business use of home .

As I understand part of the mortgage interest depending on the time and space used can be deducted as expense towards in home child care.

The first follow-up question is, how about property taxes? Can I deduct property taxes also as an expense towards in home child care business ?

And second follow-up question is,

If this is a primary residence which is also used for in home childcare, Can I deduct mortgage interest paid towards regular taxable income calculation and also as an expense towards in home child care business? or only one is allowed ?

M

maheshpujaraAuthor

Thanks I have one more follow-up question regarding the business use of home .

Can I deduct the maintenance and cleaning expenses toward the business use of home when home is used as a licensed childcare facility ? if a Cleaner and Gardner takes cash payments, can I still deduct those expenses towards home day care expenses ?

X

xmasbaby0

Employee

Yes. You will need online Self-Employed or any version of the CD/download. You will have self-employment income for which you pay Social Security and Medicare, as well as ordinary tax. You have to prepare a Schedule C for the business expenses. TT will walk you through it.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**