1112 Day Care Providers
2 rules
1. Income Payments made to day care providers to provide meals for children, other than their own, are considered self-employment income. Allowable costs of doing business are excluded from the gross self-employment income, and the remainder is subject to the 20% earned income deduction. 2. Costs of Doing Business A standard 40% of the gross income will be excluded as the cost of doing business. [1] Rev. 5-01-11