Do you make a living by taking care of children? Whether you are a nanny, child care worker, or pre-school assistant, there are some lucrative tax deductions that are available for you. Unfortunately, most people are unaware of the same and have been missing out on these tax deductions. Here is a comprehensive guide of the child care workers’ tax deductions that you can make use of in the next tax return.
Common Tax Deductions for Child Care Workers
Here are some of the key areas where you can enjoy tax deductions while taking care of children:
Work Equipment and Materials
When taking care of or supervising children, you may be forced to make payments out of pocket. These would be good items to claim back as part of tax deductions. Some of the items include:
- Musical instruments
- Teaching materials
If you have bought any of these items out of pocket, you can claim them back on your tax return. However, you need to make sure that you have all receipts in place that you have not been reimbursed for the same.
Clothing and Uniforms
Any branded clothes that you are required to wear for work are deductible during the tax return. This refers to clothes that are specific to your company and are not commonly used by the general public. As such, this means when you wear common clothes like black pants and a white shirt, you cannot make a claim for such. However, you can make tax deductions claims for the cleaning and laundry costs of the clothes you wear to work. Have all the receipts of all the weekly washes.
Child care workers may use their personal mobile phones for different reasons related to work. This includes calling parents and other staff members. In such cases, once you have received your monthly bill, work out the calls that are specifically for work purposes. You should be able to claim a portion of the bill as part of the tax deductions on your next tax return.
There are some activities that would need you to have protective wear when taking care of your children. If you are cooking, painting, playing outside, or any other activity that needs some form of protective clothing, you can get tax deductions. This applies to items like smocks, aprons, protective shoes, sun protection, and gloves among others. If the items have been provided by your employer, you cannot make claims for them. You only claim for items you have paid out of pocket and have not been reimbursed.
Self-Education and Training
Training and self-education in the child workers’ industry is also another tax-deductible item. As long as you have undertaken a course that is relevant to your current job, the costs incurred are tax-deductible. Some of the expenses include:
- Professional development courses
- Travel expenses
If you have to use your car to attend meetings, sports activities, pick supplies, or any other thing, you can claim this expense. However, you cannot include the cost of traveling from your home to work. For the related travel costs for child care workers, a rate of 72c per kilometer is applied and this can be claimed up to 5,000Km a year.
Get Professional Help with Your Tax Deductions
There are so many other tax deductions that are applicable to child care workers. At Accurate Business & Accounting Services, we will help you get the maximum tax deductions in your next tax return. Get in touch with us for professional help.