Originally Posted by TomCopeland:
If you were better off in previous years taking the standard deduction before you started doing child care, this will be even more true now that you are in business. When claiming property tax and mortgage interest you must divide these expenses between Form 8829 (time-space % amount) and Schedule A (the personal portion of these expenses). Since you will deduct less mortgage interest and property tax on Schedule A it will be more unlikely you will have enough expenses to itemize.
You can't deduct charitable deductions on your federal tax return unless you itemize on Schedule A.
I am a real dummy when it comes to taxes Tom, so please forgive me, so are you saying being in business will NOT help me at all anyway if I take the standard dedcution? There is NO WAY I would ever have more than $11,000 in deductions........ Should I stop wasting my time and just forget trying to go through all these reciepts and folders then?