Industries
Child Care Tax Help
Bookkeeping and tax preparation for child care providers, in person or remote, plus insurance questions in Concord.
Child care providers need attendance-based income, food and supply receipts, and payroll if there are employees. We organize those records and prepare the return. We do not give licensing advice.
Appointments are in San Pablo or Concord, by appointment only, or remote. Business insurance questions, including liability, are handled by Josephine at the Concord office.
Services that usually fit
Documents to start
- Attendance and tuition records with family names removed if you prefer totals
- Food and supply receipts
- Prior-year return
- Payroll reports
- License number only if you want it on the organizer
Your chart of accounts, built for child care
Stanza creates and maintains a chart of accounts so the deductions you are allowed to claim are identified and documented.
We set up income, cost of goods or job costs, and expense accounts organized around this industry’s deductible categories and the tax form lines they map to (Schedule C, or Form 1065 or Form 1120-S when the business files as a partnership or an S corporation). Sub-accounts separate items with a special tax treatment, so a repair is not mixed with a capital purchase and a liability is not booked as an expense.
Food program
Food you buy for the children, and food-program reimbursements, need their own accounts. A reimbursement is not a personal grocery bill. How you report it follows the program and the return.
Supplies
Diapers, crafts, and classroom supplies used in the business are generally deductible. Household items that are personal are not.
Home-use percentage (Time-Space %)
Providers who care for children in their home may allocate shared household costs with the Time-Space percentage. It uses your hours of business use and the space used regularly for the care. That space does not have to be exclusive. The percentage still comes from your log.
Toys and equipment
Small toys and materials are often supplies. Larger playground equipment or appliances may be capital assets and may be depreciated when the rules are met.
Liability insurance
Business liability premiums are generally deductible. A personal homeowner policy is not automatically a business expense.
Activity fees
Fees for activities that are part of the care are generally business expenses when you pay them for the children in care.
Assistant pay
Wages for helpers are payroll, not a supply. Amounts paid to a helper who is not an employee may need a Form 1099 when the filing rules are met.
Licensing fees
The license to operate the child care is generally a deductible fee. It stays apart from penalties.
How it is managed
- Each month we categorize transactions and reconcile the accounts to the bank.
- Receipts and mileage stay with the transactions they support.
- Personal spending stays out of the business accounts.
- Capital purchases are reviewed against repairs before anything is expensed.
- Vendors are tracked so a Form 1099 can be prepared when a form is required.
- A quarterly review of profit can be used to adjust estimated tax payments when those payments apply.
- At year end we review the accounts with the preparer so deductions are captured and the records support them.
Whether a deduction is allowed depends on your facts and on IRS and FTB rules. We help you claim what you are entitled to and keep records that support it. We do not guarantee savings or a dollar amount.
Book bookkeeping and QuickBooks setup with Lucia Leiva, Certified QuickBooks ProAdvisorCommon questions
- No. That is a licensing agency matter. We prepare tax and bookkeeping work.
- Bring the square footage and the hours you actually used, if you want that discussion. We do not estimate a room size.
- Josephine Leiva, CA Insurance License #0I86522, at the Concord office. A quote depends on the application and is not guaranteed.
- Family child care providers who work in their home may use the Time-Space percentage to allocate shared household costs between business and personal use. It is computed from your hours and from the space used regularly for the care. That space does not have to be exclusive. Recording the costs does not set the percentage.
Offices in San Pablo (510-778-1579) and Concord (925-349-6924). Remote work is available in California.
Ready when you are
Ready to get organized? Book an appointment today.
Pick a time that works for you — in person at San Pablo or Concord, or fully remote.