My wife is a freelance consultant. In order for her to work we have to pay for childcare for my son. I know I can deduct a small amount of childcare from my personal taxes. If my wife incorporated, would we be able to deduct more childcare as a necessary business expense?
I know – I’m a cheapskate asking on this site instead of going to an accountant, but that’s what the internet is for, right?
What you deduct is a certain percentage in relation to the total amount you make. Child care is not considered a necessary business expense, that is why there are special forms to deduct child care on.
January 19th, 2010 at 4:24 am
Firstly u r not a cheapstake, as with children one needs to save as much as possible. Yes you could do it jointly with your wife. This works out better for both of you in the long run. all the best
References :
January 19th, 2010 at 4:41 am
What you deduct is a certain percentage in relation to the total amount you make. Child care is not considered a necessary business expense, that is why there are special forms to deduct child care on.
References :
I do taxes for a living.