I have a certified family child care home. Should I claim a portion of my mortgage as a daycare expense?

[AlanT · Accepted solution]

If you are asking if you can include a portion of your mortgage as an expense to reduce the income you received in running your daycare business, the answer is yes.  

If you are asking if you can use your mortgage to claim the childcare credit, the answer is no.  

Because you are self-employed, housing-related expenses such as mortgage interest, rent, utilities, repairs, and depreciation for the portion of your home or rental that you use to run your business are allowable expenses under the home office deduction.

You may be able to claim the home office deduction if your office is:

• Used regularly and exclusively for your business, and
• Is your principal place of business (both conditions must apply).

When you enter your home office information in TurboTax, we'll ask some questions to determine if you can claim the deduction and how much the deduction is worth. You’ll need information like the square footage of your residence and the rooms you worked in.

To enter your home office expense along with other common business expenses:

1. Open your return. (To do this, sign in to TurboTax and select the blue Take me to my return button.)
2. Search for Schedule C and select the Jump to link in the search results.
3. If this is your first time entering info about your business, you’ll be asked some questions to start. If you have already entered some info about your business, click Edit next to your business.
4. Proceed through any additional screens.
   • You might want to enter your 1099-MISC, 1099-K, cash, and personal check income from your self-employment before you associate any expenses with your business, but this is not required.
5. You'll be asked What kind of expenses did you have for (type of work). Select Home office. You can also select any other expense categories that apply to your business. Select Continue at the bottom of the screen when you're done.
6. On the Here's your (type of work) info screen, scroll down to the Expenses section, and select Start next to Home Office.
7. Enter the info about your home office.

[eanchust]

All of the certified family home income is non-taxable if it is for a family member and you are not running a business