Originally Posted by MusicTatter:
I watch a neighbors 2 children. This isn't the first year, but first to file taxes (long story)
Not sure where to start as she (the neighbor) decided to file taxes for 2020. I have nothing to show but her total of what she paid.
And what do I need to do for the 2021 year? I just watch the 2 kids. Do I have to pay quarterly taxes? or just 1x a year? Can I do a standard food deduction as one child ate what I ate? (the other was on a bottle).
The kids are all over the house, as I treat them like my grand kids. Eat in the kitchen, plays in the family room, sleeps in 2 bedrooms. So do I do the t/s of the whole house? mortgage, ins? my Cell phone for texts back and forth? food?
I am reading the website for Tom Copeland and learning a bunch!
Thanks
Report this income on Schedule C. You can deduct expenses on Schedule C (food, supplies, etc.). If you are not in violation of state licensing rules you can also deduct house expenses on Form 8829. If you are single you should file quarterly estimated taxes using Form 1040ES. If you are married, you husband can have enough taxes withheld to cover your taxes. You can use the standard meal allowance to deduct food expenses. You calculate the time-space% just like any other child care provider. You can only deduct the business portion of your cell phone if you have another phone line into your home.