Maximize Your Tax Benefits: How COVID-19 May Affect Your Taxes

We are living and working in challenging times. For child care providers, COVID-19 has complicated business in many areas, not the least of which is expenses and taxes. That’s why the Office for Children held an important webinar earlier this year with Tom Copeland, a recognized national expert in the business of family child care, on how to manage the financial effects of the COVID-19 pandemic.
Tom shared tips on how to ensure business expenses are properly deducted; claim expenses and supplies related to COVID; review tax forms (8829 and Schedule C) and claim all allowable deductions and income; document to maximize deductions; and stay current on new funding opportunities. 

Tom’s tax tips included:

• The better your records, the lower your taxes.
• Properly report income and claim expenses. For every $10 of expenses you claim, you will save $3-$4 in taxes.
• Carefully track the hours you are doing business activities in your home when children are not present.
• An expense can be deducted if it is “ordinary and necessary” for your business.
• Be careful before claiming Social Security benefits early.
• Take advantage of the Small Business Administration’s 24-week forgivable Paycheck Protection Program loan.

For more information, visit tomcopelandblog.com. You may also contact Tom with questions at tomcopeland@live.com.