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Daycare and Taxes>First Time Tax Filer as Self-Employed- So lost!
Unregistered 06:31 PM 11-12-2011
After reading through a majority of these treads about taxes.......I think I've made a big mistake.

I started babysitting 4 children starting in January. In May, I received a lot more interest in my "babysitting" and I'm now a Group Home Daycare with 12 children enrolled.

I applied and received an EIN during the summer, I've copied and documented all income, expenses and miles, I use MMK and will provide my families with the proper documentations.......and I am confident I've covered all bases regarding my home daycare.

My big mistake......taxes. I saw someone mention paying quarterly taxes and this was the first time I've heard of this. I read through Tom Compland's blog and the more I read about quarterly taxes, the more I think I was suppose to be paying quarterly. I haven't been paying any taxes at all.......I assumed I would just do it all at the end of the year like I used to do when I was employed at a daycare center. But now that I'm self-employed - I realize I'm in charge of paying taxes for myself and I've saved a nice amount of money for this purpose.

My question(s):

1) Am I suppose to be paying taxes quarterly or will I be okay with paying taxes anually? Year-to-date, I've made around $15,000.

2) Will I be penalized and owe if I was indeed supposed to be paying quarterly?

3) What are the first steps I should be doing if I am required to pay quarterly? Are there special forms I need to complete and where/who do I send in my taxes to?

I'm so lost.....any help is super, super appreciated!!
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Tags:tax filing
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