mother working as household employee

[Juuge]

I provide childcare for my grandchildren as my daughter's household employee. During the summer when all three are out of school, I often use my own money to take them places for "field trips." Is this deductible from my wages?  If so, do I use a schedule C?

[rjs · Accepted solution]

You say that you are a household employee. That would mean that you provide the child care in your daughter's home, not in your own home. Is that what you are doing?

As a household employee you do not file Schedule C. Your daughter should give you a W-2 at the end of the year, and you enter it just like a W-2 from any other employer.

Under the current tax law, at least through 2025, a W-2 employee cannot deduct any job-related expenses. The best solution would be for your daughter to pay for the trips or for you to give her an "expense report," with receipts, and have her reimburse you.

If you provide the care in your own home, then you are not a household employee. You are essentially running a daycare business in your home. You would not get a W-2. You would report your business income on Schedule C, and you would be able to deduct expenses.

[Hal_Al]

Q.  I often use my own money to take them places for "field trips." Is this deductible from my wages? 

A. No.

As others have explained, "employees", including household employees are no longer allowed to deduct job expenses.  

If you are a self employed day care provider, you can deduct "ordinary and necessary" expenses on Schedule C.  Entertainment expenses for "arms length" client's children might be considered reasonable business expenses.  But, food and entertainment for your own grandchildren would not.