Owning an in-home daycare can be rewarding and quite expensive. There are many costs that you may not realize can actually be deducted from your taxes each year. The following guide walks you through a few things that you may actually be able to deduct from your taxes if you own an in-home daycare.


If you are responsible for providing the food that you feed the children while they are in your home, you can deduct a portion of your food costs from your taxes. A tax consultant can help you determine exactly how much of your food costs are deductible depending on how many children you watch and how often you watch them.

Cleaning Supplies

You need to keep the home clean and sanitary to keep germs and illness from spreading among the children. Cleaning supplies including bleaching wipes, vacuums, and even soap all count as deductions from your taxes because they are necessities you need in order to create a hygienic space for the children.


When the children are in your care, they need to have toys to play with to stay entertained and learn throughout the day. The toys that you buy need to be age appropriate and some can be very expensive depending on the type you choose. The toys will need to be replaced every once in a while as children are often very rough with toys, and once they are broken, they should no longer be given to the children to use. The cost for the toys can be deducted, as long as you keep receipts for the purchases.

Outdoor Play Equipment

Children need to play outside throughout the day in order to be able to burn up some of their energy. A swing set, sand box, and riding toys are all supplies that are needed for children to use outside when they are playing and you may be able to deduct them all from your taxes if you own an in-home daycare.

Medical Supplies

You need to be prepared for bumps, scrapes, and boo-boos that can happen when children are in your care. Thermometers, bandages, and ice packs are necessary when you own a daycare.

Meet with a tax consultant to find out exactly what things you can deduct from your taxes at the beginning of the year. This will give you the opportunity to save all of your receipts throughout the year so that you have proof for the money that you spent on your daycare. Click here for more information.