Office expenses appear as a business expense category on the IRS Form Schedule C, line 18.
What expenses might you have that you can deduct on this line?
Adding machine, tape
Bank charges (checks, monthly account fees, bounced check fee)
Books (childrens’ books, parenting books, family child care books, my books!)
Business forms (contracts, policies, accident reports, field trips, etc.)
Computer software (Minute Menu Kids Pro, Microsoft Word, Excel, QuickBooks, printer ink, computer supplies)
Dues (membership in the National Association for Family Child Care, state and local associations)
Education and training (See my article on whether classes to get a post secondary degree are deductible)
Greeting cards (birthday, holiday, get well, sympathy – for children and parents)
Magazines (children’s magazines, parenting magazines)
Notebooks, notepads, folders
Paper, paper clips
Pencils, pencil sharpener, pens
Stapler and staples
That’s a lot of stuff! Make sure you are saving receipts for these items.
To be able to deduct an expense, you must use it in your business. If you use it only for your business you can deduct 100% of the cost. If you use it for business and personal purposes, you can deduct the Time-Space Percentage of the cost.
Note: You may think that some of the above expenses belong on another line on Schedule C. For example: paper, envelopes, sticky notes, and pencils could easily also be called Supplies and entered on line 22. However, it doesn’t matter where you put your expenses on Schedule C. See my article, “How to Choose an Expense Category For Items You Purchase.”
Did I miss something that you deduct as Office Expenses?
Tom Copeland – www.tomcopelandblog.com
Image credit: smallbusiness.chron.com
For more information about what’s deductible in your business, see my book Family Child Care Record Keeping Guide which lists over 1,000 allowable business deductions.