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View Full Version : How Much Do In Home Provider Usually Pay Into Taxes??


Provider_Manda
02-11-2013, 06:41 AM
For my 2012 taxes I am doing my first full year of income. Last year we used Turbo Tax and done fine, we got back a return and all. Well this year I bought H&R Block software and hate it I can't figure it out for the life of me, so I went onto Turbo Tax online, filled it out and it says we owe over $1400!! Every provider I know and have talked too, always get a return back? So either someone is being shady, or I am doing something really wrong. We have decided to have our taxes done. I am calling a local cpa today. Im just wondering with it only being our first full year should we be paying that much? My husband and I file joint so I didn't know if that affected it or not. Any input would be great..thanks!

daycarediva
02-11-2013, 07:07 AM
My tax rate between state and federal is around 45% of my income. I use deductions to reduce the amount I owe, but based on income, we usually pay in. We don't qualify for earned income credit, and even with 4 kids and all of the daycare deductions, we still owe.

My dh is also self employed, which I am told affects us a LOT as neither of us pays ANY tax all year. We do put aside about 20% of our income and whatever we don't have to pay in, I consider our 'return'. :D

itlw8
02-11-2013, 07:37 AM
Dh has extra taken out of his taxes to cover mine. The goal is to not get a refund. That means I had too much withheld and they had my money tax free.

With the credits we got I was surprized we could not take the credit for the new windows because we owed 0.... but remember I still owed the self employment taxes. Those are paid by us instead of the employer for SS


Yes if you did not do estimated taxes or have any withheld you may owe. If you got EIC last year and this year made more money that money is gone .

frugalmama4
02-11-2013, 07:56 AM
Again totally confused :confused::confused::confused:...I just responded to another thread with a similar situation.

I think taxes owed are different for everyone...everyone's situation is different. I have four kids of my own and last year did not qualify for the EIC but this year I do; last year I did have "child dependent care expense of $4500.00" and received credit for that. I don't have state taxes either...it looks like this year my husband paid in enough taxes to cover us both...when I went through TT it shows I have an self-employed tax of $605.00 (looks like its taking it out of what my refund should be) and my family has a $0 tax bill...have no ideal how??? So I too will have a tax pro double check before I file.

Good Luck on figuring all this out!

Jewels
02-11-2013, 12:10 PM
last year I got my income down to $18000 and I have 2 kids and my husband files 0 at his work, so he has more withheld to help us, last year we owed in $40.00, and got back $17 from the state, this year I'm not sure how it will work but I'm banking on owing in, I earned about $58000, and I think I can get it down to $30000 maybe even $25000, my husband still claimed 0, so I know we will owe in, no way could we not owe something, although that would be nice!!

TomCopeland
02-11-2013, 04:37 PM
Remember, what you owe in taxes at the end of the year is based on many different factors, so comparing your taxes to someone else's doesn't mean anything. These factors include: how much you or your husband had withheld throughout the year, your business income and expenses, your personal circumstances (health costs, children, etc.) and more.

Once you calculate your business profit you will owe Social Security taxes and income taxes on it. If your husband has enough withheld, you may not owe anything at tax time and will get a refund.


Join me for a webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.com/register/event?oeidk=a07e6vcrqstfc2c8437&llr=yatrx4cab