Originally Posted by BrightBeginnings2014:
I'm so nervous. My husband and I do this together so we don't have other money. Maybe I should go to someone else. She did tell me all these things to save but maybe there are more things i can write off. Last year we owed $5,000! However, part our fault. i went off our estimated from the previous year which we had made much more..anyway..just so nervous..need to figure out a better system.
Since both of you rely on this income and don't have outside taxable income, that can be rough!
Save every-single-receipt. Read up on Tom Copeland's blog & Facebook page. You can learn a lot there.
Record every expense related to your house. Pretty much everything you pay into your home will have a Time/Space deduction.
Speaking T/S- make sure you factor in EVERY moment you are doing work related things. Including the time spent reading this post. Shopping, Continuing Ed courses, mailing your licensing info, responding to emails, returning books to the library after hours. ALL of it that relates to daycare in any way.
Get to know the little things that can benefit you... like instead of giving gifts to children for birthdays and Christmas to take home & open, they open their gifts at daycare to play (then bring home) and it is then an "activity" (100% deductible) instead of "gift" ($25/year limit).