Why isn’t childcare a business expense?

[Anonymous]

There are multiple child-related tax benefits in the tax code already. They aren't Business Deductions. Some of these are targeting lower income households, so will phase out as income rises. ChildCare HSA is an example of one that does not phase out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's because having children is not a requirement for your job.

This is the answer. Children are a personal choice unrelated to employment. Childcare is no different than other personal nondeductible expenses which make it easier for people to work, like a home closer to your place of employment, a car to commute in, clothes to wear to work (if not a required uniform), a watch make sure you arrive at work on time, etc. Those are all personal, not business expenses.

This. Some people choose to travel to work by car. That doesn’t make their car a work expense (aside from those who actually use the car for work purposes.)

Please. Every small business owner I know has figured out how to count using their car for work, deducting home office space (and yes, this can mean they are able to take on a larger mortgage), even do stuff like hire their minor children for tasks at ridiculous rates so they can set up tax advantaged retirement accounts for them in elementary school.

[Anonymous]

Anonymous wrote:I’m just setting up payment for a new nanny. I withhold taxes, so I pay her taxes on my already post-tax dollars. It drives me kind of crazy.
If you have two working parents or you are a single parent, you more or less need childcare to work. How is this not a business expense and tax-deductible?

I guess that you could argue that you could get away with not having childcare, but you can also work from home and get away with not having a home office. Yet the home office is tax-deductible.
And you could say that it’s a cost of living expense like food or rent, but it really isn’t. It’s an expense that I have because I am working.

I just feel like the tax code is designed to penalize two income households.

And home offices are tax deductible in very specific situations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's because having children is not a requirement for your job.

This is the answer. Children are a personal choice unrelated to employment. Childcare is no different than other personal nondeductible expenses which make it easier for people to work, like a home closer to your place of employment, a car to commute in, clothes to wear to work (if not a required uniform), a watch make sure you arrive at work on time, etc. Those are all personal, not business expenses.

This. Some people choose to travel to work by car. That doesn’t make their car a work expense (aside from those who actually use the car for work purposes.)

Please. Every small business owner I know has figured out how to count using their car for work, deducting home office space (and yes, this can mean they are able to take on a larger mortgage), even do stuff like hire their minor children for tasks at ridiculous rates so they can set up tax advantaged retirement accounts for them in elementary school.

This seems unfair.

[Anonymous]

Having children is a lifesyle choice. Business deductions do not exist to subsidize lifestyle choices.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's because having children is not a requirement for your job.

This is the answer. Children are a personal choice unrelated to employment. Childcare is no different than other personal nondeductible expenses which make it easier for people to work, like a home closer to your place of employment, a car to commute in, clothes to wear to work (if not a required uniform), a watch make sure you arrive at work on time, etc. Those are all personal, not business expenses.

This. Some people choose to travel to work by car. That doesn’t make their car a work expense (aside from those who actually use the car for work purposes.)

Please. Every small business owner I know has figured out how to count using their car for work, deducting home office space (and yes, this can mean they are able to take on a larger mortgage), even do stuff like hire their minor children for tasks at ridiculous rates so they can set up tax advantaged retirement accounts for them in elementary school.

Everyone is free to give up W2 jobs and start their own business.

Of course if you drive to see a client or otherwise for your business, you can take a mileage deduction. Many times, a car is titled in the name of the business and then you deduct everything.

Hiring children was always a great way to get audited…but probably nobody is auditing anyone through 2028.

You do have to pay 100% of SS and other payroll tax costs at around 15.5% vs just the employee portion for a W2.

Actual nanny costs would be trickier though if you actually have employees and the company hired the nanny and that person watched multiple kids, you could deduct.

[Anonymous]

Why not babysitting deductible too for SAHMs date night?

[Anonymous]

Doesn’t the child care tax credit cover this to a certain extent?

[Anonymous]

Anonymous wrote:(Satire) I know, let us have the government setup and manage subsidized child care, as in Sweden. That would work really well in a large diverse country like the USA.

Sweden's birth rate has reached a record low, with the current rate at around 1.43 children per woman, the lowest since records began in the 18th century. Won’t need to bother with that for long!

[Anonymous]

Anonymous wrote:

Anonymous wrote:(Satire) I know, let us have the government setup and manage subsidized child care, as in Sweden. That would work really well in a large diverse country like the USA.

Sweden's birth rate has reached a record low, with the current rate at around 1.43 children per woman, the lowest since records began in the 18th century. Won’t need to bother with that for long!

It’s safe to say that few 1st world countries have a good answer considering the US is now at 1.6 and continuing to drop. Korea is insanely low at 0.78.

I think France at 1.8 is the highest for all 1st world countries. They do offer generous childcare benefits.

[Anonymous]

Anonymous wrote:Why not babysitting deductible too for SAHMs date night?

Why would a SAHP qualify for a business expense?

[Anonymous]

Anonymous wrote:I think it's because having children is not a requirement for your job.

Sure. But since I do have them, I need my nanny in order to do my job.

I mean, having a receptionist isn’t technically a requirement for my job either. Someone else with different skills might be able to get away without one. Do you think it’s unreasonable that I have her on my business payroll? Or should that be a personal expense?

[Anonymous]

Anonymous wrote:Because ideally women should stay home barefoot and pregnant.

+1

Patriarchy.

[Anonymous]

Anonymous wrote:What "business" are you operating that you would deduct such expenses?

OP here. I’m a dermatologist with a solo practice.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think it's because having children is not a requirement for your job.

This is the answer. Children are a personal choice unrelated to employment. Childcare is no different than other personal nondeductible expenses which make it easier for people to work, like a home closer to your place of employment, a car to commute in, clothes to wear to work (if not a required uniform), a watch make sure you arrive at work on time, etc. Those are all personal, not business expenses.

Children are the future of society, and the decision to have them or not has consequences for demographics, social structures, and the continuation of human life.

While individuals have the freedom to choose whether or not to have children, the decision is not a simple lifestyle choice in the same way as choosing a hobby or a travel destination. It's a deeply personal and impactful decision with profound implications for individuals and society as a whole.