Is childcare a business expense?
No. Childcare so you can work is a personal expense, but it can earn the child and dependent care credit.
The rule
Even when childcare is the only reason you can run the business, the IRS treats it as personal. It doesn’t go on Schedule C.
What you pay for care of a child under 13 while you work can earn the child and dependent care credit, which comes off your tax directly. Self-employment earnings count as earned income for it.
- Where it goes
- Not on Schedule C; the credit is on Form 2441
- What to keep
- Receipts and the provider’s tax number for Form 2441.
Checked on September 25, 2026 against Publication 334, Tax Guide for Small Business. An estimate for your records, not tax advice.
See it on every receipt.
Snap it and Reimburse files it on the right Schedule C line, takes the deductible share and shows what it puts back.