Tax preparation for Washington adult family homes

We prepare the business return and your personal return together, because in an adult family home they are one story. We know how Medicaid income, Section 131, the house and your own pay fit together, and we check before we claim.

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Tax filing dashboardfor Adult family homes

Operating your Adult Family Home as an LLC? An S-Corp election can cut self-employment tax for Washington AFH owners — but not every home benefits. See if an S-Corp election is right for your home.

Read our Washington AFH S-Corp guide

Where care home tax returns go wrong

Medicaid income

Not sure how your Medicaid and private-pay income should be reported at tax time?

Paying yourself

Not sure how to pay yourself from the home, or what it means at tax time?

Section 131

Not sure whether Section 131 applies to your home, or how much of your income it covers?

Missed Deductions

Not sure the house, the vehicle and the equipment are being depreciated properly?

What we look at on every AFH return

More than filling in forms

We review how the home is set up, what the house and equipment are worth on paper, how you pay yourself, and whether Section 131 applies.

Medicaid and private-pay income reported correctly

Section 131 checked properly, and applied where it fits

The house, vehicle and equipment depreciated properly

Owner pay and draws handled correctly

Business and personal returns prepared together

Plain language

We explain your return in plain words before you sign it.

If the IRS writes

If the IRS writes to you about a return we prepared, we explain the letter, pull the records and help you answer.

Records that stand up to questions

We explain your return in plain words before you sign it.

Every number ties back to a document on file

Documents stored with the return

A digital copy of everything you send us

If we make a mistake, we correct it at no charge and help you answer any letter

Work handled by preparers who only do care homes

Year-round, not just at tax time

Your tax picture changes during the year, not just in April. We are here when it does.

Ask us before a big decision: a second home, a vehicle, a change in how you pay yourself

Quarterly estimated-tax reminders

We watch for rule changes that affect adult family homes

A planning conversation when your situation changes

Your documents kept on file from year to year

Local Expertise

We work only with Washington care homes, so state-specific rules are everyday work for us.

Let's find the right plan for your facility

AFH Essential

2-8 bed facilities

$500 annually

Section 131 review, Medicaid income reporting, home and equipment depreciation

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Virtual Tax Services (Secure & Convenient for Busy Facility Owners)

Professional Caregiving Facility Tax Prep

Why drive across town when everything can be handled securely online?

Privacy first

Encrypted client portal
Multi-factor sign-in
Digital signatures

Faster, More Efficient

Video consultations
Documents upload
Portal access
Work from anywhere

Complete Flexibility

Video consultations
Documents upload
Portal access
Work from anywhere

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Gain Peace of Mind and Financial Clarity

Experience the difference specialized services CarebearBooks can offer. Our service is designed to simplify your operations, provide crucial insights, and ultimately give you greater peace of mind.

Care home deductions, claimed properly

We work with adult family home returns every day, so deductions that fit a care home are recorded and claimed properly.

Enjoy a stress free tax season

We take the scramble out of tax season, from telling you which documents to gather to filing the return.

File with confidence

Your returns are prepared carefully and filed on time.

Get expert tax guidance

Benefit from the expertise of professionals who understand the financial landscape of AFHs. We’re here to answer your questions and provide clarity.

Frequently asked questions

How is care home tax preparation different from regular small business taxes?

A care home has income and costs most small businesses do not: Medicaid payments, residents living in the owner's house, caregivers on site around the clock. A preparer who sees them every day is less likely to miss something.

Are my Medicaid payments always taxable?

Usually they are business income. In some situations part of them can be excluded under Section 131. It depends on how your home is set up, so we look at your case before answering.

How does Section 131 apply to my Adult Family Home specifically?

Section 131 can let some providers exclude part of their Medicaid income from federal tax. Whether it applies, and to how much, depends on how your home is set up. We check that for you.

CarebearBooks

Financial care for caregivers

Specialists in payroll, books and tax for Washington adult family homes

CarebearBooks is an NSBC brand, providing professional accounting services.

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