Day Care Providers Income and Expenses 2021
As a daycare provider, you generally receive income from several sources. Examples include:
- Direct payments from parents or guardians.
- Direct payments from the employee benefit plan of a parent or guardian.
- Subsidy payments from state and local agencies or from charitable organizations for specific children or adults in your care.
- Sales of assets used in your daycare business.
- Grants from state, local, or private agencies.
- Reimbursements for expenses you incur, such as food program payments through the Child and Adult Care Food Program (CACFP).
All the above items are included in your daycare gross income.
- Grants made directly to your business are generally included in business income. If you spend the grant money in your daycare business, you can deduct those expenditures.
- Most tax professionals recommend that you include reimbursements in your business gross income. You can then claim a deduction for the expenses included in the reimbursement.
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