I haven't been in your exact situation but I was self employed for 3 years and had to fill out the schedule C. As a daycare provider in your home the biggest deduction you would be entitled to would be a portion of your rent/mortgage payments and utility payments (for example if one room of your house is solely devoted to daycare and you have a five room house, 1/5 of your rent and utilities are a business expense) These claims are the easiest to back up because you can show proof of what your rental payment and utility bills have been without going to too much trouble. Also if you provide transportation for the child you watch then figure up the miles you drive round trip just to pick up/drop off the child and multiply that by the number of days that you do it per week, then multiply again by the number of weeks you watched them. There is a set amount that can be deducted per mile. Those two deductions alone will probably help out a lot and then you can use any other items such as child proofing equipment, toys, etc that you do have receipts for. You aren't likely to be audited anyways as long as your deductions aren't way out of line with what you made. Beyond the ones that I've listed you can basically claim anything that you use to carry out your business as a deduction, just don't go overboard with it. The other thing to keep in mind for the future is that you can only claim a loss from a business for like 3 consecutive years, so be careful that you don't use every deduction in the book and end up showing that it cost you more to have the business than you made because you can only do that so many times.