Can I donate my services to a parent and then deduct it on my taxes?

No. Sometimes providers help parents who are suffering a family emergency by donating free child care. Or, a provider might give parents a scholarship, discount or otherwise offer free care.

In all of these situations, the provider cannot claim unpaid care as a business deduction. This is because parents are not a tax deductible charity. So, money you don't collect is not a deduction. It means you have less income to report at the end of the year, and therefore lower taxes.

However, don't let the tax consequences get in the way of helping parents!