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Effective: December 1, 2006 |
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20.25.20.35ar1 - In-Home Day Care (Archive) |
Archived: February 1, 2010 |
Clients who provide day care in their homes are considered self-employed for Minnesota Health Care Programs.
Note: Clients who provide day care in someone else's home are not eligible for in-home day care deductions. Treat wages from day care provided in someone else's home following standard earned income policy.
The following policy regarding in-home day care is only for MA and GAMC.
Allowable In-Home Day Care Expenses.
To determine countable self-employment income, for in-home day care, deduct allowable expenses from gross receipts.
Note: Do not count payments from the Minnesota Child Care Food Program in calculating the gross receipts of the self-employment business.
Allowable In-Home Day Care Expenses
The following expenses are allowed as business expenses for in-home day care. These expenses must be itemized if they are being used as a business expense.
l Food.
l Toys and books.
l Supplies.
l Transportation.
l License fees and professional dues.
l Advertising costs.
l Equipment rental and lease expenses.
l Equipment which is not a capital expenditure.
l Expenses for use of home.
In-home day care providers may use one of two ways to calculate their in-home day care expenses. Be sure to use the method most advantageous to the household.
The two methods are:
l Itemize actual allowable expenses.
Note: Do not deduct expenses reimbursed through the Minnesota Child Care Food Program.
l Take a flat rate deduction of 60% of gross receipts.
In-home day care providers must itemize actual allowable expenses.