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Old 04-17-2019, 01:01 AM
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Vanka Vanka is offline
Daycare.com Member
 
Join Date: Apr 2019
Location: California
Posts: 6
Default Tax Return Example

Hi everyone,
I am having a bit hard time understanding what taxes in home daycare providers pay.
I have searched the internet without luck, so maybe anyone can give me an example of how the whole tax system works.
Let's say I am married, filling jointly in the state of CA.
For the sake of simplicity let's say, the revenue from my daycare is 100k and my husband works and gets a salary of 100k.
Let's say I have calculated all my business related expenses which amount to 20k, so I am left with 80k taxable income.
Questions 1
I pay 15,3% self employed tax on the 80k. Right?
Question 2
I pay 24% federal tax on the 100k revenue? Or is this 24% also on 80k???

Question 3
Any other taxes I have to pay?? Any specific state taxes?
If you can share your own examples that would be great.
Thank you!
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