IRS Form 8829 - Understanding Expense Deductions for the Business Use of Your Home - February 2026

Sep 19, 2026

Family Child Care Home Provider Tax Tips explain how child care providers can claim tax benefits for operating a business from their home using IRS Form 8829. The guide distinguishes shared expenses that are partly personal and partly business from expenses that apply to the business only (Schedule C). It outlines the Time-Space percentage method based on business hours and business square footage, then connects that calculation to shared expenses like rent and mortgage interest, while listing common shared expense categories and record requirements.

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Family Child Care Home Provider Tax Tips

Shared vs. business-only expenses

IRS Form 8829 in brief

Time-Space percentage method

Common shared expenses

Adequate record requirements

Family Child Care Home Provider Tax Tips IRS Form 8829: Understanding Expense Deductions for the Business Use of Your Home February 2026 Child care is a business. For Family Child Care providers, there are tax benefits to claim related to operating a business out of your home. Shared Expenses. Family child care providers may have some expenses that are considered“shared expenses” – they are partly for personal purposes and partly for business purposes. When a family child care provider has shared expenses – use IRS Form 8829 to report those expenses. When an expense is related to your business only, use IRS Form Schedule C (see the one page explainer for Schedule C) . IRS Form 8829 in Brief. The IRS Form 8829 is related to the business use of your home. Expenses on this form are shared – partly business and partly personal (e.g., rent or mortgage interest reflects a monthly payment. Because you also live in your home, these payments are not 100% business related. They are partly business and partly personal) . The Time-Space Percentage. There is a“Time-Space” formula that calculates the business use of your home. The Time Percentage is the number of hours your home is used for business purposes divided by the total number of hours per year. The Space Percentage is the \# of square feet in your home used regularly for business purposes divided by the total number of square feet in your home. Both the time and the space percentages are multiplied together for an overall time-space percentage. The overall time-space percentage is then calculated against your shared expenses such as your rent. For a more detailed explanation of the Time-Space calculation, see our one page brief. Common “Shared” Expenses Reported on IRS Form 8829 Home or Rental Insurance Rent Mortgage Interest Utilities (gas, oil, electric, sewer, water, etc. ) Property Taxes House Repairs Furniture Appliances Swing set Lawnmower Expenses Need an “Adequate Record” • Receipt • Cancelled check • Credit/debit card statement • Written record • Photograph Tom Copeland: [http://tomcopelandblog.com/checklist-for-form-8829-expenses-for-business-use-of-your-home](http://tomcopelandblog.com/checklist-for-form-8829-expenses-for-business-use-of-your-home)

FAQs

What is IRS Form 8829 used for?

IRS Form 8829 is used to report the business-use-of-home expenses that are shared between business and personal use.

How do shared expenses differ from expenses used only for the business?

Shared expenses are partly personal and partly business, so they are reported on Form 8829. Expenses related to the business only are reported on Schedule C.

How is the Time-Space percentage calculated?

Time percentage equals business hours divided by total annual hours. Space percentage equals square feet used regularly for business divided by total square feet, and the two percentages are multiplied to get the overall Time-Space percentage.

Sep 19, 2026

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