Women who provide day care in their own homes augment their modest earnings in some cases if they take afvantage of deductions permitted under the Internal Revenue regulations concerning use of private homes for business purposes. Where combined family income is at a level where income tax is payable, it may be profitable to calculate all permissible deductions and to reduce the tax owed, thereby effectively increasing the amount of disposable income. Allowable deductions include both direct expenditures such as cost of food and toys, as well as indirect costs, such as mortgage payments, rent, or utilities. Illustrative examples of various deductions are given to demonstrate the necessary computations and the minimum record keeping procedures required by family day care mothers in order to claim the deductions. The illustrated deductions in the hypothetical example reduce taxable income by almost one half. (Author)