đ¨ AFH Owners: Avoid These 3 Costly Tax Mistakes! đ¨
- Christina Nguyen
- Mar 6
- 1 min read

Running an Adult Family Home (AFH) comes with unique tax challenges, and mistakes can cost you thousands in overpaid taxes or IRS penalties! â
đ Here are 3 Common AFH Tax Mistakes to Avoid:
1ď¸âŁ Missed Deductions = Missed Savings đ°
Many AFH owners fail to deduct eligible expenses like utilities, food for residents, home repairs, and medical supplies.
Proper documentation ensures you claim every tax-saving opportunity!
2ď¸âŁ Underreporting Caregiver Wages = IRS Trouble â ď¸
If youâre paying caregivers under the table or misclassifying them as contractors, you could face IRS audits, penalties, and back taxes.
Always report wages properly and file W-2s or 1099s correctly!
3ď¸âŁ Not Tracking Mileage = Lost Tax Write-Offs đ
Business-related driving for medical appointments, supply runs, and resident care is 100% deductible, but only if you track it!
Use an app or logbook to capture mileage and maximize deductions.
đ Tax mistakes can cost you bigâdon't wait until it's too late! Need help filing your AFH taxes correctly? Letâs chat! đŠ
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