Tax question, help!!!

Ok I am watching 1 child for my best friend for the 08-09 school year. I am doing my taxes and when I go through the SE income quesitons on taxact, there are a bunch of daycare use of the home questions. Am I entitled to these deductions from my childcare income, when I'm only watching one kid (therefore I am not licensed), or do you need to be a registered licensed daycare provider to get these deductions. Thanks in advance for you help!

Sarah

[Phil_EH]

Sarah - You really want the correct answer here (wish I had it for you). I'd recommend contacting the IRS directly or an accountant in your area. That way you'll know for certain you handle it correctly.

[tymaboy]

Some states you do not have to be licensed or registered to be a provider so yes you can claim those deductions.

[cadaycare]

Definitely contact a CPA. If you don't have one who does your taxes personally, ask a friend. You would most likely get the best advice this way.

[GretasLittleFriends]

Our CPA told us that if your daycare income is under a certain amount you don't have to claim it. I was unemployed for most of 2008, and what little daycare income I earned wasn't enough to claim.

Also, since I wasn't officially licensed until March of 2009 she said I could hold off on my "start-up" costs (license fees, classes, etc) and claim them all on 2009 taxes because that's when I officially became licensed.

I used to do my own taxes when I had a regular paycheck, but when I married my husband who is self-employed, he had a CPA. She used to work with the IRS, and she's incredible!!! I'd highly recommending finding one.

[Ms.Sue]

doing my taxes and when I go through the SE income quesitons on taxact, there are a bunch of daycare use of the home questions. Am I entitled to these deductions from my childcare income, ...........

when I had my home daycare I used Tom Copeland "home Daycare Tax Book" it was wonderful --- but as I grew I had to get an accountant. Get it --- it answers everyting!