What to Do If You Filed for a Tax Extension: A Guide for Child Care Providers
Tax season can be overwhelming—especially when you're running a child care business and juggling daily responsibilities. If you filed for a tax extension this year, you're not alone. Many providers take advantage of the extension to get more time to gather documents, organize expenses, or work with a tax preparer. But now that you’ve been granted extra time, what should you do next?
Here’s a simple guide to help you stay on track and make the most of your extension period.
📅 Know Your New Deadline
If you filed for a federal tax extension, your new deadline is October 15, 2025. Mark this date on your calendar—missing it could result in penalties or additional interest.
Also, check with your state tax agency to confirm if your state return was automatically extended or requires separate action.
📂 Get Your Documents in Order
Use this time to make sure all your financial documents are accurate and complete. Key documents might include:
1099 forms if you received them
Records of income from parents or subsidy payments
Receipts for expenses (supplies, meals, repairs, etc.)
Mileage logs for business-related transportation
Time-space percentage calculation (for home-based providers)
If you haven’t already, organize your documents into folders—physical or digital—to make tax prep smoother.
🧾 Maximize Your Deductions
Child care providers are eligible for many business-related deductions. Make sure you’re not leaving money on the table:
Home office and shared space deductions (using the time-space percentage)
Supplies and educational materials
Food and meal expenses
Toys and play equipment
Utilities and maintenance for your home-based business
Taking time now to calculate these properly can lower your tax bill.
💼 Decide If You Need a Tax Professional
If you were rushed during the original tax season, now is a good time to work with a tax preparer—ideally one who understands small businesses or the child care field. A professional can help:
Spot deductions you might miss
File both federal and state returns accurately
Help you plan better for next year
🧮 Plan for Payment
Remember: a tax extension gives you more time to file, not more time to pay. If you didn’t submit an estimated payment with your extension, you may owe interest or penalties. Once your return is complete, plan to submit payment as soon as possible if you owe taxes.
If the total feels overwhelming, look into payment plans through the IRS or your state.
✅ Prepare for Next Year
Use this experience to set up systems that will make next tax season easier:
Track income and expenses monthly
Use a spreadsheet or bookkeeping app
Save receipts digitally
Set aside a portion of your income for taxes
Final Thoughts
Filing for a tax extension can relieve immediate stress—but don’t wait too long to take action. The extra time gives you the opportunity to get organized, reduce errors, and potentially save money.
By getting ahead now, you’re setting your child care business up for financial health—and peace of mind.
