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Daycare_Mama 09:25 AM 12-30-2010
Originally Posted by TomCopeland:
Using tax software (Turbo Tax, etc.) is fine but only if you already know what you are doing.

Software won't tell you what is deductible.
It won't explain how to deduct items that are used both business and personal. So, you must know how to calculate your time-space percentage and apply this to items before you enter them into the software.
It won't tell you that reimbursements from the Food Program for your own children are not taxable income.
Using software to calculate your depreciation can be difficult to understand.

So, if you know all this stuff then using software can be an easy way to prepare your taxes. But it you aren't sure about what you are doing, don't use it. I've seen many providers who got into trouble with the IRS because they didn't know how to use software (claimed house expenses twice, etc.).
This makes me nervous now because I was going to try to use turbo tax this year. I'm unlicensed (legally) and only care for one family and I can't afford to pay hundreds for someone to do my taxes. My mom's accountant who was my dad's accountant for years for his business has done mine every year for $60, but last year I got the feeling he didn't know much about daycare taxes. I would love to go to someone who knows what they're doing in the daycare area, but I can't afford more than $100 for it. Tom, is there anyone in the Minneapolis area you can reccommend that is affordable and knows what they're doing? I've been told my taxes are easy - I don't own any real estate or anything and it usually takes him just 10-15 minutes to do mine. If I buy your book, would I then be able to use turbo tax easily?
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