What COVID-19 Expenses Can You Deduct?

Are you spending money to keep the children in your program safe during the COVID-19 pandemic?

The answer is probably "yes" for most family child care providers.

Here are some examples of COVID-19 spending:

• COVID-19 supplies

  • Gloves

  • Masks

  • Disinfectants

  • Sanitizers

  • Thermometers

  • Delivery service fees (food, supplies, etc.)

  • Expenses to keep children apart (screen dividers, etc.)

  • Painting, remodeling, etc. (to get ready for reopening)

  • Costs associated with distance learning (computers, Internet, Zoom fees, curriculum/activity expenses, etc.)

How much of these, and other expenses, can you deduct?

If you only use an item for your business, you can deduct 100% of the cost. If you also use an item for personal use, deduct the business portion, which is probably your Time-Space Percentage.

Keep receipts for all of these expenses. In fact, it's a good business practice to keep receipts of all expenses, whether you think it's deductible or not.

What other expenses do you have because of COVID-19?

Tom Copeland - www.tomcopelandblog.com

Image credit: https://www.cnbc.com/2021/03/18/despite-billions-in-relief-advocates-say-more-needs-to-be-done-to-fix-the-child-care-crisis.html