Updated April 29, 2022
allows a parent to hire the services of a daycare business or in-home childcare person (babysitter) to take care of their child. A daycare is commonly a place of business where the parent will drop-off their child and pick up again at a later time. Daycares are predominantly for working parents during the workweek, Monday to Friday, providing childcare after school. Depending on the age and length the child stays at the daycare, responsibilities may include meals, helping with homework, and any other similar responsibilities.
Table of Contents
What is a Daycare?
is a place of business that parents may utilize to provide care for their children when they are at work or other obligations. openings, hours per week, transportation, trips,
- 24-Hour – If a parent is seeking to have their child stay overnight.
– Child is dropped off at a commercial daycare location.
– For parents looking to get a workout and have their child be entertained.
– Child is dropped off at a residential daycare location.
– Full-service and usually more money requiring the necessary care and nurturing of the child.
Home-Based vs Center-Based
two (2) types
of daycare are home-based and center-based. They are both generally utilized on a scheduled basis matching the parents’ work schedules.
Daycares are regulated by each State’s childcare administration office establishing laws related to building and safety codes in addition to how many adults must be available per children. Every daycare must hold a license and be in good standing in order to be located in each State’s daycare registry.
In addition to State laws, there may be local laws and required building codes attributed to daycare centers.
Daycare License Lookup
Click on the State below to perform a license search for a daycare facility:
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
How Much is Daycare?
- Center-Based Daycare: *$1,230
- Home-Based Daycare: *$800
*Based on 25 hours per week.
50-State Pricing ($): 50-State Map (ChildcareAware.org)
Is Daycare Cheaper than a Nanny?
Yes, in most cases. The national average for a nanny is $19.14/hour (source: NannyLane.com).
– If we use the data above (25 hours/week) and account four (4) weeks in a month we have 100 hours/month. Now we take the average center-based is $1,230/month which equals $12.30/hour and the average center-based childcare is $800/month which equals $8/hour.
Daycare Costs vs Nanny Costs
- Center-Based Daycare:
- Home-Based Daycare:
Is Daycare Tax Deductible?
Yes, up to $1,050 for a single parent and $2,100 for both parents. Only children that are
below the age of 13
qualify unless the parent has a child with physical or mental disabilities.
- IRS Form 2441 – Use this to file for the tax deduction (credit) at the end of the fiscal year.
The tax credit is calculated as a percentage, a maximum of 35%, of $3,000 per parent. The amount of the tax deduction depends on the income of the parents. (see table below)
- $0 to $15,000:
- $15,000 to $17,000:
- $17,000 to $19,000:
- $19,000 to $21,000:
- $21,000 to $23,000:
- $23,000 to $25,000:
- $25,000 to $27,000:
- $27,000 to $29,000:
- $29,000 to $31,000:
- $31,000 to $33,000:
- $33,000 to $35,000:
- $35,000 to $37,000:
- $37,000 to $39,000:
- $39,000 to $41,000:
- $41,000 to $43,000:
If a single mother makes $30,000 per year, her tax deduction would be 27% (.27) multipied by $3,000 equaling $810.
Daycare Contract Samples
Sample 1 (simple)
Download: Adobe PDF
Sample 2 (advanced)
Download: Adobe PDF
Babysitting Contract – For the hiring of a babysitter to supervise children for a temporary period.
Nanny Contract – For the hiring of a nanny to supervise children for a long-term period.
Daycare or Day Care Grammar