Before getting involved with home daycare, be aware of the tax laws regarding this new home business. It is critical that you invest in a great tax preparer who is well informed of the write offs and deductions that apply. Your home also happens to be your place of business and a proactive approach is important in understanding all of the tax implications.

I learned this lesson the hard way, I assumed I had money taken out for supplemental health insurance and I was wrong. This is an important message to get across to all home childcare providers. Since our jobs do not provide health benefits you must make sure you have paid into this every year. As a single mother I did not have health insurance, so I can tell you first hand that you should bring this to your tax preparer's attention, as some may not be informed of this.

A great tool and resource to help inform you further of your tax return is the Tax Companion, written by Tom Copeland who is one of the nations leading experts in childcare tax laws. To access this information visit Red Leaf Press.