Preparing for the 2021 Tax Season - October 2021 English Draft 2

Sep 19, 2026

Preparing for the 2021 Tax Season provides question-and-answer guidance for home-based child care providers preparing tax filings in the context of COVID-19 impacts. The material explains why taxes matter for businesses and how tax preparation affects eligibility for stimulus funding, including common issues that can reduce or prevent Paycheck Protection Program support. It also covers audit risk basics, selecting qualified tax preparers and online tools, and includes attachments such as a mileage log and supplemental worksheets.

LanguageEnglish

CategoryPresentations

FormatPDF

Pages23

Reading Time8 min

AccessFree to download

Introduction

Why care about your taxes?

What is included on my tax form?

How much money did I make?

How much money did I spend?

How do I include the costs of my home?

How do I handle Paycheck Protection Program, grants, and other stimulus money?

How do I find a good tax preparer?

How do I choose an online tax program?

Once my taxes are completed, what do I do next?

Attachment A: Mileage Log

Attachment B: Supplemental Worksheet for Form 7202

Attachment C: Confidence in Quality Tax Prep Rubric© for Child Care Providers

About the Organizations

Preparing for the 2021 Tax Season By Home Grown Child Care With Civitas Strategies and Nielsen Training & Consulting The information contained in this document has been prepared by Civitas Strategies, LLC and is not intended to constitute legal advice. The Civitas Strategies team has used reasonable efforts in collecting, preparing, and providing this information, but does not guarantee its accuracy, completeness, adequacy, or currency. The publication and distribution of this presentation are not intended to create, and receipt does not constitute, an attorney-client any other advisory relationship. Reproduction of this presentation is expressly prohibited. Contents Introduction .......................................... 1 Why care about your taxes? .................................... 1 What is included on my tax form? ....................... 3 How much money did I make? ..................................4 How much money did I spend? ................................. 6 How do I include the costs of my home? ......................... 8 How do I handle Paycheck Protection Program, grants, and other stimulus money? .....................11 Stimulus Checks ............................................. 11 Paycheck Protection Program Loans ...........................11 Stabilization Grants .......................................... 11 Additional Subsidy & Emergency Worker Funding ...............11 In-Kind Supplies .............................................12 Economic Injury Disaster Loans & Other Small Business Administration Loans .........................................12 Families First Coronavirus Act Leave ...........................12 How do I find a good tax preparer? ....................13 Make sure your tax prepare r is qualified........................13 Look at your tax preparer’s history and experience...............13 Other questions to ask .......................................13 How do I choose an online tax program? ................14 Once my taxes are completed, what do I do next? .......14 Attachment A: Mileage Log ............................15 Attachment B: Supplemental Worksheet for Form 7202 IRS Credits for Sick Leave and Family Leave ............16 Attachment C: Confidence in Quality Tax Prep Rubric© for Child Care Providers .............................. 17 About the Organizations ..............................20 Introduction The child care sector is still looking to recover from the devastating impacts of COVID-19. We have endured a global pandemic that not only impacted or threatened our health, but also our livelihoods. Home-based child care providers have felt the impact of the pandemic harder than most industries . As tax season approaches, many home based child care providers have questions about how to best prepare. For this reason, Home Grown Child Care created a tool for this year to provide up-to-date guidance on how to navigate 2021 tax preparation. Geared to the average home-based child care provider, Preparing for the 2021 Tax Season takes you through the steps of getting ready to have your taxes prepared by a professional or completed using online software. The tool is set up in a simple question-and-answer format based on those frequently posed by other home-based child care providers. To answer the questions, we drew upon official US Internal Revenue Service guidance (including their audit guide for child care providers) as well as other nationally-recognized sources. If you have additional questions and comments, you can email us at [ppp@civstrat.com](ppp@civstrat.com) . WHY CARE ABOUT YOUR TAXES? Taxes are an important consideration for any business, and they are a valuable contribution to our government at the national, state, and local levels. From a business perspective, they are also a cost — reducing the hard-earned profit from your enterprise . While you should always pay your fair sh

FAQs

Why should home-based child care providers care about taxes during the 2021 tax season?

Taxes affect costs and business profitability, and fulfilling tax responsibilities supports eligibility for government programs. The guide also connects tax preparation to lower risk during audits and better handling of IRS questions.

What tax preparation issues can affect eligibility for stimulus funding and the Paycheck Protection Program?

Incomplete, incorrect, or missing tax returns can prevent providers from demonstrating eligibility. Examples include using the wrong received amount, or failing to obtain a needed copy when applying.

How can providers choose a qualified tax preparer or an online tax program?

The guide recommends making sure the tax preparer is qualified, reviewing experience and history, and asking additional questions. For online options, it outlines considerations for selecting an appropriate online tax program.

Sep 19, 2026

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