End-of-Year Tax Savings Tips for Family Child Care Providers - post

As a family child care provider, running your own business means staying informed about every opportunity to save money. With the end of the year quickly approaching, now is the perfect time to maximize your tax deductions and plan for a financially savvy new year. One of the most impactful strategies you can use is investing in professional #development—and prepaying for training through ChildCareEd could be a smart move to help reduce your taxable income for this year.

Why Professional Development Is a Smart Tax Deduction

In most instances, professional development expenses are 100% tax-deductible because they are directly related to improving your skills and maintaining your qualifications as a child care provider. This includes:

• Online training courses.
• Certification programs.
• Workshops or seminars.
• Continuing education requirements for licensing.

By taking advantage of these deductions, you not only invest in your professional #growth but also reduce your tax burden. Prepaying for professional development before December 31st ensures that the expense counts toward your 2023 tax year deductions.

Prepay for Training with ChildCareEd’s Group Admin Feature

If you’re planning to invest in professional development, consider using ChildCareEd’s Group Admin feature to purchase training for yourself and any #staff members. Here’s how it works:

1. Convenient Prepayment: You can prepay for training hours now and assign them to participants when it’s convenient. This allows you to lock in the expense for this tax year while spreading out the training schedule.
2. Bundle Savings: Purchase clock hours in bulk at a flat price and then assign classes to staff members. No expiry of purchased hours; these hours can also be transferred to other accounts
3. Trackable Records: Tracking progress of assigned classes. Access to staff's certificates once courses are completed.

ChildCareEd offers a variety of self-paced, online training courses designed for child care providers, including topics such as child development, #health-and- #safety, and trauma-informed care. Explore courses that align with your business goals and requirements for ongoing certification.

Other Tax-Saving Opportunities

To make the most of your tax savings, consider these additional deductions available to family child care providers:

1. Home Office Deduction:
• If you run your business out of your #home, you can deduct a portion of your mortgage, rent, utilities, and maintenance costs based on the percentage of your home used exclusively for your business.
2. Supplies and Equipment:
• Items like toys, #books, art supplies, furniture, and even cleaning products used in your child care business are deductible.
3. Mileage and Travel:
• Track the miles you drive for business-related purposes, such as trips to purchase supplies or attend training sessions. These can be deducted at the standard mileage rate.
4. Meals and Snacks:
• The cost of meals and snacks provided to the children in your care may be deductible under the Child and Adult Care Food Program (CACFP) guidelines or actual expense reporting.
5. Insurance and Licensing Fees:
• Business-related insurance premiums and licensing or registration fees are also tax-deductible.

Tips for Staying Organized

To ensure you’re maximizing your deductions:

• Keep detailed records of all receipts and invoices.
• Use accounting software or hire a professional accountant familiar with child care businesses.
• Stay updated on tax laws and deductions relevant to family child care providers.

Invest in Your Future and Save Today

By prepaying for training through ChildCareEd and taking advantage of other tax deductions, you can reduce your tax burden while investing in the quality of your child care program. Don’t wait until it’s too late—take action now to set your business up for success in the year ahead. Explore the comprehensive training options on ChildCareEd today and enjoy the dual benefits of professional #growth-and tax savings!

Disclaimer

The information provided in this article is intended for general guidance and educational purposes only. Tax laws and regulations can vary by state and are subject to change. Family child care providers should consult with a qualified tax professional or accountant familiar with their local and state tax codes to ensure compliance and to maximize deductions specific to their business circumstance