All the ones that you mentioned seem like they would be deductible expenses. According to the IRS:
" To be deductible, a business
expense must
be
both ordinary
and necessary. An ordinary
expense is
one that is common and accepted in your trade
or business
. A necessary
expense is
one that is helpful and appropriate for your trade
or
business
.
An
expense
does
not have to be indispensable to be considered
necessary .
"
Here are first some common expenses for most business and then some that might apply to you as a childcare provider. Please feel free to post any additional details or questions in the comment section.
Common Expenses
- Communication costs, for example cell phones, data plans, internet or wireless services, land or fax lines, long-distance charges, voicemail or answering services, call waiting, etc.
- If also used for personal reasons (for example, internet service), then only the proportion used in business is allowed as an expense
- Office supplies (paper, toner, writing instruments, etc.), software, stamps, envelopes, shipping materials, cleaning supplies
- Any licenses or permits that are required for your profession
- Fees and membership dues you paid to professional associations or unions
- Continuing education or certification related to your work
- Mileage accumulated during the course of your work
- However, regularly commuting to and from a fixed office wouldn't qualify
- Advertising costs, including business cards and websites
- Fees for attorneys, consultants, accountants, and other professionals
- Liability insurance, errors and omissions insurance, surety bonds
- Credit card and bank fees
- Health care premiums
As a self-employed caretaker, babysitter, or nanny, here are some additional expenses you can deduct, in addition to those listed above:
- CPR certification, first aid training
- Miscellaneous supplies such as diapers, food, toys, books
- Liability insurance
- Advertising, including websites
- Cell phones, data plans, second phone line
- Vehicle expenses or standard mileage
- Work-related education or training
- Licenses and permits, membership dues
- Fees for legal or professional services (Childcare only)
These out-of-pocket expenses will offset (reduce) your earnings, lowering the amount of income you pay taxes on.
To get started:
Simply search for "Schedule C" and then click the "Jump to" link in the search results.
Then (assuming your business has already been set up in TurboTax), you'll want to click Edit next to your business and then scroll down to the Business Expenses topic on the Your Business summary screen.
Otherwise, if you haven't set up your business yet, follow the onscreen instructions and eventually you'll come to the part where we ask about your business-related expenses.
