A BIG question we get asked ALL the time is “Can I claim my childcare costs?”. Jason talks through why, unfortunately, it’s a NO from the IRD.
Unfortunately, childcare costs are not deductible as a business expense as they’re not directly related to your income earning. A business expense needs to be directly attributed to the income you are deriving from that expense. Whereas with childcare costs, you are paying it so you can go out and earn, it’s not directly related to that earning.
It’s frustrating because if you didn’t have your kids in care, you probably couldn’t earn but that’s the rules at present with the IRD.
There are tax credits that you can claim for donations that you make to daycares, kindergartens, etc. Find out more on the IRD website.
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