What I check on every return
- Every credit you qualify for checked, including the Earned Income Credit and Child Tax Credit
- Time-space percentage calculated from your real hours
- Meals claimed at IRS standard rates or actual cost, whichever is better
- Food program and subsidy payments reported correctly
- Your home costs split between personal and business
Deductions home daycare providers often miss
- A share of rent or mortgage interest, utilities, insurance and repairs (time-space %)
- Food for daycare children at the IRS standard meal and snack rates
- Toys, books, cribs, art supplies and outdoor equipment
- Cleaning supplies and extra laundry
- Licensing fees, CPR and training hours
- Field trip costs and mileage for daycare errands
Houston and Texas rules that apply to you
- State registration: Texas Health and Human Services oversees home-based child care as listed family homes, registered child care homes or licensed child care homes. Registration and training costs are deductible.
- Subsidy and food program income: payments through Workforce Solutions Gulf Coast child care subsidies and food program reimbursements are income. Food program reimbursement also lowers the meal deduction for those meals.
- No Texas income tax: your return is federal only, but self-employment tax (15.3% for Social Security and Medicare) applies once your net self-employment income reaches $400.
New for 2026 returns (filed in 2027)
- Meal rates: for 2025 returns the IRS standard rates were $1.66 breakfast, $3.15 lunch, $3.15 dinner and $0.93 per snack per child (one breakfast, lunch and dinner and three snacks a day). I use the 2026 rates from Publication 587 when the IRS publishes them.
- Parents' credit: the child and dependent care credit is larger starting in 2026, so more parents will ask for your taxpayer ID. Give them a free EIN on Form W-10 instead of your Social Security number.
What to bring
- Attendance records or your daily schedule (hours open, prep and cleanup)
- Square footage of your home and of the daycare areas
- Parent payment records and subsidy and food program statements
- Receipts for food, supplies and equipment
- Rent or mortgage interest, utility, insurance and repair bills
Common questions
What counts in my time-space percentage?
Time includes hours with children plus prep, cleanup, shopping and paperwork, divided by the 8,760 hours in a year. Space is the share of your home used regularly for daycare. Rooms don't have to be used only for daycare.
Do I have to give parents my Social Security number?
No. Get a free EIN from the IRS and give that on Form W-10. It protects your identity and parents still get their credit.
Where I work
I'm based in Houston and work with clients across Harris, Fort Bend, Montgomery and Brazoria counties, including Pasadena, Pearland, Sugar Land, Missouri City, Katy, Cypress, Spring, Humble, Baytown and The Woodlands. Meet in person in Houston or do everything online, in English, Spanish or Portuguese. I also work by video with clients in Beaumont & Port Arthur, Duncanville, DeSoto, Cedar Hill & Lancaster.
Get a flat-fee quote before I start
Book a free 15-minute call. I'll tell you what your return needs and what it costs. Fees are never a percentage of your refund.
Book a free callSee typical pricesOfficial sources: IRS Publication 587 (home daycare) ↗ · IRS Form W-10 ↗ · Texas HHS: Child Care Regulation ↗
Updated October 2026 for 2026 returns filed in 2027. General information only, not tax advice for your situation. Rules and amounts can change; your situation is confirmed when your return is prepared.
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