Daycare business – How to do the Personal Income Tax Return?

I have seen many home daycare providers do not know how to report their income and expenses. Gross income has to be reported in line 162 and net income in line 135 of T1 General Return (I have chosen Ontario Link). Make sure the software you buy has T2125 form. You can deduct business related expenses to arrive at net income.

Image by neuroskeptic.blogspot.com

Here is a list of some expenses that can be deducted:

Supplies

Kids meals

Business use of home office

Field trip expenses

Professional fees (accountant, lawyer etc)

Office expenses

Salaries.

Keep your receipts incase CRA comes for audit.

CRA site has wealth of information on this