Can I deduct anything on my 1099-NEC for providing attendant care for a special needs child in my home?

So I started providing attendant care for a special needs child from September through December 2024, and I'll continue throughout 2025. This is my first time filing with a 1099-NEC and I'm trying to figure out what deductions I might qualify for. I provide care in my own home - I've basically dedicated half of our downstairs area to this (though my family still uses the space too). The care includes housekeeping, feeding, and food preparation. I've already set aside money for self-employment taxes including my state rate, but honestly it would be really nice to lower my tax bill if possible. I'm wondering specifically if I can deduct the mileage for driving the child from their day clinic to my home? It's about 75-125 miles every week. Also, can I deduct the cost of mileage log books? Is there anything that's mandatory to expense for this type of work? Any advice would be super helpful - thanks in advance!

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18 comments

Dmitri Volkov

•8M

You absolutely can deduct business expenses as a self-employed care provider! Since you're operating as an independent contractor (1099-NEC), you're essentially running a small business. You'll report your income and expenses on Schedule C. For the mileage, you can definitely deduct the miles driven for business purposes using the standard mileage rate (65.5 cents per mile for 2025). The drives from the day clinic to your home would count as business mileage since you're transporting your client as part of your services. Keep a detailed log with dates, starting/ending odometer readings, purpose, and total miles for each trip. For the home space you're using, you might qualify for a home office deduction if that area is used "regularly and exclusively" for your business. Since you mentioned your family also uses the space, the exclusive use requirement might not be met, but you should evaluate if any portion is truly exclusive to your business. Other potential deductions: supplies for care activities, portion of utilities, additional insurance costs, training/education related to caregiving, and any special food/supplies specifically for the child's needs.

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Dmitri Volkov

•8M

Food is a bit tricky. Regular meals provided to the child are generally considered personal expenses and not deductible. However, if you're purchasing special foods required by the child's medical condition or special needs, those might qualify as deductible business expenses. For regular food expenses, they're only deductible in certain business contexts - like if you're hosting a business meeting or if providing meals is an explicit requirement in your contract and you're specifically compensated for it.

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Tyrone Johnson

•8M

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Tyrone Johnson

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Raj Gupta

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Lena Müller

•8M

I've been a home care provider for 5 years now and wanted to add a few things that might help. Make sure you keep all receipts for anything you buy specifically for the child's care - special utensils, educational materials, safety equipment, etc. These are all deductible business expenses! Also, if you're using part of your home "regularly and exclusively" for the business, definitely track all associated costs. I deduct a percentage (based on square footage) of my utilities, internet, cleaning supplies, and even my homeowner's insurance. For mileage, get a dedicated log book and record EVERYTHING the day it happens - trying to recreate it later is a nightmare. And yes, transportation between work locations is absolutely deductible.

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Lena Müller

•8M

That's a great question about the play area. The "exclusive use" test is pretty strict with the IRS. If your family uses the area on weekends, it technically wouldn't qualify for the home office deduction under the exclusive use requirement. However, there's a special rule for daycare providers that might apply to your situation. If you're a licensed care provider, you can still take the deduction even if the space is used for personal purposes during non-business hours. The deduction would be prorated based on both the percentage of your home used AND the time it's used for business. For example, if you use 20% of your home for 40 hours a week (out of 168 total hours), you'd multiply those percentages to get your business use percentage.

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