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Reply to "Why isn’t childcare a business expense?"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think it's because having children is not a requirement for your job.[/quote] 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. [/quote] 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.)[/quote] 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. [/quote] 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.[/quote]
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