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Hi and welcome to Just Answer!Your S-corporation may hire someone to watch your children and pay all required employment taxes.However these expenses are not considered business expenses because they are not related to your business - but rather your personal expenses.
Benefits of using your S-corporation – that all employment taxes are handled together with minimal overhead. But there is no tax saving for providing payments via the S-corporation.Your S-corporation should treat all expenses for having someone watching your children as your wages and in additional should report them on your W2 forms. Your wages are deductible for the S-corporation.You will be able to deduct child care expenses on your own tax return - on the form 2441 - www.irs.gov/pub/irs-pdf/f2441.pdf