|
Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc. |
|
Thread Tools | Display Modes |
#1
|
||||
|
||||
I Need To Claim More
I am clearly not claiming enough expenses and now we owe $9000. So I have homework to do. I'm claiming gifts, daycare insurance, homeowners insurance, taxes, mileage, supplies, cable/phone, water, electric/gas.
I found out I can claim cleaning and paper product on a t/s%. So I need to do that. How much does everyone on average claim for that for the year? What am I missing. My tax person said "go look". |
#2
|
||||
|
||||
We have owed the past two years and I claim everything under the sun
My tax person actually said don't run out and buy a ton because it really doesn't help in deductions. We are losing our own kiddo's so I think that has something to do with it-we don't get all those credits.
__________________
Each day is a fresh start Never look back on regrets Live life to the fullest We only get one shot at this!! |
#3
|
||||
|
||||
I claimed four kids, and two extra kids this year AND I almost owed in. We are getting a $130 combined fed/state return. My accountant is happy with that- as we estimated and paid our quarterlies correctly.
repairs. mileage. activity expenses. meals. supplies. I literally save EVERY receipt. I scan them, and make a photocopy. I highlight each thing that was used for dc use. My dh and I are both self employed, so it's years and years of practice to NOT owing that HUGE amount at the end of the year. |
#4
|
||||
|
||||
$9,000 may be a lot but that depends on your income. If you had to pay in very little or not at all, you would not be operating on much of a profit. That doesn't help with your current bill, but I guess I look at it as I want to make money. Also, there is so much more to taxes that just your daycare business.
Tom Copeland has list of all the things you can can claim, but as someone else above stated, spending money to reduce taxes does not make sense unless you actually need the stuff you are buying. Good luck! |
#5
|
||||
|
||||
You should pick up a copy of Tom Copeland's book, it gives a lot of information about what you can claim, a lot of stuff you might not think of.
I also save every receipt for absolutely everything I buy through the year and scan them so that I have a copy that won't deteriorate as easily over time. Tom's book also talks about how to document purchases if you don't have or didn't get a receipt. |
#6
|
||||
|
||||
Quote:
|
#7
|
||||
|
||||
Quote:
|
#8
|
||||
|
||||
My DH and I are both self-employed as well and my T/S is always 100% so I literally claim everything relating to daycare and we still pay in between $2500-3500 every single year.
....and my kids are too old for me to claim as dependents anymore. |
#9
|
||||
|
||||
Quote:
Other time spent used to be something I often forgot to add in.
__________________
- Unless otherwise stated, all my posts are personal opinion and worth what you paid for them. |
#10
|
||||
|
||||
How is t/s figured
|
#11
|
||||
|
||||
http://www.uft.org/files/attachments...de-english.pdf
This is a good resource, obviously don't follow the meal rates because they change yearly. Pg 25-42
__________________
- Unless otherwise stated, all my posts are personal opinion and worth what you paid for them. |
#12
|
||||
|
||||
http://tomcopelandblog.com/how-to-ca...e-year-is-over
I don't calculate anything as my daycare is 100% separate from my home. Like 7 miles down the road separate. |
#13
|
||||
|
||||
Quote:
Breaking even is the goal... There have been years (when the kids were still at home) that we got just enough back from state to pay federal or vs. Gah...taxes suck. period. |
#14
|
||||
|
||||
Right? I am also still nervous about how it will go next year. I am not buying any new equipment or supplies this year. I plan to float along with what I have already collected.
__________________
- Unless otherwise stated, all my posts are personal opinion and worth what you paid for them. |
#15
|
||||
|
||||
meals/snacks
Quote:
__________________
http://www.tomcopelandblog.com |
#16
|
||||
|
||||
Quote:
|
#17
|
||||
|
||||
I serve breakfast, lunch and 2 snacks. I do get reimbursed for breakfast, lunch and 1 snack in my food program check each month. Can you tell me how that would work then? I am most definitely buying your book so I can be going all year doing the right thing.
|
#18
|
||||
|
||||
Here's my food program tax statement. Is there something on here that can tell me how to claim the $189 per day per child type of thing?
|
#19
|
||||
|
||||
I pay in about 6K every year to Federal and another 600 to state. I keep thinking I must be missing things but I always come up with the same lists every year. Do make sure when you figure your hours that you worked, you add all those hours you've put in at home doing dc-related activities. Cleaning dc rooms, planning meals, being here on this forum, taking on-line classes at home, prepping curriculum or materials, working on taxes, rewriting your policies, meeting with potential clients, etc., etc. It will up your T/S ratio and help a bit.
Another thought...the first several years I worked I made zilch because I was just getting started. I was so excited. But all those years are coming back to haunt me because I won't get much at all in social security. Certainly not enough to retire at 65. |
#20
|
||||
|
||||
Have you claimed any computer expenses? Paper, ink, software, repairs, internet?
|
#21
|
||||
|
||||
Quote:
I keep a meals and snacks tally along with my attendance records to make this easier at the end of the year. Also, don't forget to calculate mileage for any trips that are more than 50% for your daycare. I overlooked that for a number of years. My mileage mainly comes from trips to deposit daycare payments and for hitting garage sales, but it's a few hundred dollars every year. Don't forget to include things like landscaping, cleaning and paper products, anything that the daycare even uses only sparingly (I once included a bathroom scale because they like to play with it when we're in the bathroom ). And I agree, taxes suck |
#22
|
||||
|
||||
Quote:
My last tax preparer added up my internet and cable tv and landline and deducted 100%. I don't know if that was right or not. I do need to add on for printer ink and paper. For some reason I don't have any receipts for that. |
#23
|
||||
|
||||
Quote:
|
#24
|
||||
|
||||
Quote:
Does that explanation help? |
#25
|
||||
|
||||
Quote:
|
#26
|
||||
|
||||
expenses
Quote:
__________________
http://www.tomcopelandblog.com |
#27
|
||||
|
||||
food
Assuming you serve 1296 pm snacks that were not reimbursed by the food program, yes, you can deduct $946 for serving them. Keep records showing you served these snacks.
__________________
http://www.tomcopelandblog.com |
#28
|
||||
|
||||
How do I keep records on that other than the attendance sheets? Thank you! You all have been lifesavers!
|
#29
|
||||
|
||||
Quote:
|
#30
|
||||
|
||||
Quote:
Tom, thanks for the info about t/s% off 2nd phone! I never knew that and missed out on it this year. If you throw any parties or functions for dcfs don't forget to count all the $$$ you put into that plus all your outside of work hours! |
#31
|
||||
|
||||
I wonder what the average t/s is that everyone normally does.
|
#32
|
||||
|
||||
I don't know that there really is an average. The best way to figure it out is to keep records for two months of the year of every hour that you spend in your home doing anything related to daycare, then use that figure to estimate for the rest of the year. You can claim any time you spend preparing for daycare (curriculum, activities, etc.), cleaning for daycare (anything over and above what you'd normally do), surfing the internet if it's daycare related, etc. When I do mine it normally comes out to between 38-43%.
|
#33
|
||||
|
||||
Quote:
|
#34
|
||||
|
||||
Tom's Tax Organizer has a blank page at the back to keep track of meals. When I scan and total my sign in sheets at the end of the week, it just takes a couple of minutes to check off the lines. You don't have to remember that Tommy wasn't here for breakfast Tuesday or left before afternoon snack on Friday. It's right there on your sign in sheet. Particularly helpful a few months into the year when you have slacked off a bit. 😄
|
#35
|
||||
|
||||
Quote:
|
#36
|
||||
|
||||
Quote:
|
#37
|
||||
|
||||
Yeh, 23% sounds awfully low. Mine runs anywhere from 28-32%, depending on how many hours I put in, in any given year.
|
#38
|
||||
|
||||
meal counts
Track meal counts on attendance sheets is all you need to do. Any other method that shows the name of the child and the type and number of meals and snacks served every day will work.
__________________
http://www.tomcopelandblog.com |
#39
|
||||
|
||||
telephone
Quote:
__________________
http://www.tomcopelandblog.com |
#40
|
||||
|
||||
time-space%
The average number of hours providers care for children is 11 hours a day. That is equal to 33% of the year. The average number of hours providers conduct business activities in their home after children are gone is about 13 hours a week. That is equal to 8% of the year. That's an average time percent of 41%. I haven't seen studies on the average space percent. I'd guess that an average time-space % would be 30-35. However, I've seen them as high as 98%! Don't worry about averages. Instead, keep records and claim whatever it is for you.
__________________
http://www.tomcopelandblog.com |
#41
|
||||
|
||||
travel time
Quote:
__________________
http://www.tomcopelandblog.com |
#42
|
||||
|
||||
meal counts
Yes, you can use this food program statement as proof of how many meals and snacks you served. But this only represents your reimbursed snacks, then you need to have your own records showing your unreimbursed snacks.
__________________
http://www.tomcopelandblog.com |
#43
|
||||
|
||||
She totally figured it wrong. I gave her my book called forms facts and figures. Right in it it says the actual daycare hours I had kids was 2,428 hours, so that right there divided by 8,760 hours in a year is 28%. So now is it ok to go back and estimate how many hours I've done bookwork, training, shopping, cleaning, interviews etc? I'm not going to go crazy, but even a couple of percentages up would help alot. Is it ok to do that? I figured the t/s % right correct? 2,428/8760 is 28%?
|
#44
|
||||
|
||||
Quote:
The way I do mileage for shopping is figure out how many miles to certain stores I regularly shop at, then count my receipts to that store. And as long as my purchases total more than 50% for dc I can count the trips. Do you also count going to the dump or paying for trash pick-up in your deductions? I didn't notice if you had or not. |
#45
|
||||
|
||||
Quote:
Bonus is I'm still doing paperwork for last year and I found the receipt for the new screen door that I had to put up because the kids kept breaking my other one. It was $341. Do I use the t/s on that? |
#46
|
||||
|
||||
On my yearly statement that's on KidKare, it shows how many breakfast, lunch and snacks. All of my kids are here the entire day. Can I go by that KidKare statement then if my attendance book shows that they were here all day? There's not a spot on the Forms Facts and Figures to put anymore info other than time in, time out, total hours, amt due and amt paid
|
#47
|
||||
|
||||
We have a landline that is Magic Jack, so I only pay less than $50 a year for it. Then we have the cell phone for me, my husband and 2 kids. That normally is $350 a month. He has a carpet cleaning business and he normally claims a portion of the cell phone bill. Are you saying I can claim a portion of it too?
|
#48
|
||||
|
||||
Quote:
Is there a way that I can estimate a bit for my taxes that I'm doing for last year since I didn't know I could do this? |
#49
|
||||
|
||||
Quote:
My own T/S percentage is 39.26, which gave me a $10k deduction this year. I have one room used exclusively for daycare, the rest of the sq footage I use is deducted at 39.26%. |
#50
|
||||
|
||||
Quote:
|
#51
|
||||
|
||||
Quote:
First, you need to figure out the square footage of each room and the total square footage of your home. Then figure out how many hours you spend working in the home (including cleaning, prepping, internet research-like this, plus working hours). Tom explains T/S here: http://tomcopelandblog.com/how-to-ca...e-year-is-over The formulas are all entered in Turbo Tax if you do taxes yourself- you just need the basics (sq ftg and time working). Unless you have a good tax preparer who really knows daycare allowances, it's almost more beneficial to read up on what's allowed and do taxes yourself. I had a tax preparer who SAID she knew daycare, yet didn't deduct HALF of what I knew I was allowed. She said I owed over $5000 in 2015. I redid them myself asking Tom some questions here about my big expenses I wasn't sure of ended up only owing $400! |
#52
|
||||
|
||||
Quote:
|
#53
|
||||
|
||||
I just looked at my licensing page. They only have approved my playroom, the kitchen, dining and living room as approved spaces. The kids are in those rooms all of the time. The playroom is not used by our family at all. So it's 110 square feet for the playroom and 627 square feet for the other rooms (living, kitchen, entry way, bathroom). Our entire house is 1,800 square feet. I calculate 3100 hours between working and extra hours cleaning, training online, record keeping etc. Can someone show me the math on this? Thank you so much
This is from Tom's book. "Step two: Identify the rooms in your home that are regularly used for your business. Regular use means a room is used at least two-three times per week for business purposes. You can count laundry rooms, office, and other rooms that children don’t enter, but you use for business purposes. Include your basement and garage if they are used regularly. Add up the square feet of these regularly used rooms. Divide this number by the total number of square feet in your home." So if I don't use the extra bedroom because licensing hasn't approved it, but my son is at college and I do my bookkeeping at his desk now, I can count that square footage, the garage because that's where I keep the outside toys, my laundry room because that's where I do the blankets and sheets the kids use? This is my last obstacle before I can call 2017 taxes done! |
#54
|
||||
|
||||
Quote:
|
#55
|
||||
|
||||
Do you have a LLC? I just have one kid, my husband does 50k per year, I am playing to open a LLC and take care 6 children, I hope I never gonna own money , and I will safe all the receipts, thank you
|
#56
|
||||
|
||||
Quote:
I have a DBA (doing business as) because I named my daycare. I looked into a LLC but it was to expensive. |
Tags |
deduction, meal deductions, meals served, write off, write offs, write-off |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Can I Claim A New Camper And Expenses? | CraftyMom | Daycare and Taxes | 2 | 03-17-2017 11:28 AM |
Vehicle Insurance Claim | daycare | Daycare and Taxes | 3 | 02-26-2013 09:06 PM |
Tom-What Year to Claim Things In? | Country Kids | Daycare and Taxes | 1 | 02-11-2013 03:28 PM |
Do I HAVE to Claim Expenses? | rmc20021 | Daycare and Taxes | 6 | 02-10-2013 11:42 AM |
Claim Without Receipt? | Unregistered | Daycare and Taxes | 3 | 10-04-2012 07:49 AM |