Family Daycare Expenses: Form 8829 or Schedule C, and at What Percentage

Expenses for a home day care fall into a few groups (Pub. 587):

• Shared home costs — rent, utilities, homeowner's or renter's insurance, general repairs — go on Form 8829 and are deductible at your Time-Space percentage.
• Costs only for the day care space — painting the playroom, a repair in a room used only for day care — are direct expenses on Form 8829 at 100%.
• Day care-only items — toys, art supplies, cribs, licensing fees, liability insurance, advertising — go on Schedule C at 100%.
• Items used by both — paper towels, cleaning supplies, a vacuum — go on Schedule C at the business share; using your Time-Space percentage is common.
• Food: if you use the standard meal rates, the day care groceries aren't deducted separately.

Naptally guesses the group from each description. Add a Category column to your expense file to set it yourself.

Not tax advice.

Last reviewed 2026-10-28. General information, not tax advice. Your tax adviser can tell you what applies to you.