Tax Question - Maternity Leave

[hsm]

Hi, I am a long time lurker who has learned so much from this forum. My policies and backbone are stronger because of the experiences many of you have shared. I have a tax related question that I can't find an answer to in the archives.

I am currently caring for just one family as their kids put me at my legal limit. DCM was on maternity leave Dec 2- through early Feb. so I was closed. I was receiving payment to hold their spots but not providing care as she chose to keep all of the kids home with her.
When filing taxes for 2021 and then for 2022, I assume I will not deduct any utilities, mortgage interest, insurance, or property tax interest for December or January, correct? Does February need to be prorated for the number of days care was provided in that month or do I count the whole month in or out?

[Alwaysgreener]

tomcopeland Can you answer the post above

hsm
Did you do any work during that time, such as cleaning or organizing toys and supplies?
Did you take calls or handle any required paperwork? Those hours count as working hours when kids are not in care.

This is a question for Tom, so if he doesn't respond here you can always go to his blog at www tomcopelandblog.com and he will respond to you with in a day, most days.

[Cat Herder]

Other Hours: Time Spent Working in Home

[hsm]

Thank you! So I can deduct all of the above (except utilities since the children weren't here to consume any of that) according to time-space percentage as long as I have record of hours spent working on daycare-related tasks during the months they were gone? That will make things so much easier.

[Cat Herder]

No, you still deduct all supplies and utilities like usual, then use your time/space ratio.

You were open for business, you just had no attendance. They were paying and you were available.

Closed means they could not have attended.

If taxes worked that way, every daycare center in the country would have closed permanently during COVID.

[hsm]

Thank you! I should've asked for clarification on this months ago. I could've finished my taxes while I had all that free time

[Cat Herder]

1. Shoveling deck, porch, driveway
2. Salting deck porch driveway
3. Mowing grass, trimming, raking, gardening, pulling weeds, watering lawn & flowers, bushes, trees.
4. Cleaning house,
5.Unloading groceries
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