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  #1  
Old 04-06-2018, 10:58 AM
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Default 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".
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Old 04-06-2018, 11:08 AM
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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.
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Old 04-06-2018, 11:29 AM
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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.
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Old 04-06-2018, 12:24 PM
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$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!
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Old 04-06-2018, 01:03 PM
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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.
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Old 04-06-2018, 01:04 PM
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$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!
I get all of that, I'm just thinking if there is something that I'm missing that I already spend money on. I just looked back at other taxes I had done by another person and with the food program, I can claim monthly 2 meals and a snack, so the statement I get at the end of the year says there are "unreimbursed meals like 2,200 of them" For that 3rd snack. My last tax person did something with that on my taxes to get more money back. This lady didn't do that. Does anyone know about that?
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Old 04-06-2018, 01:16 PM
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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.
Are you part of the food program? How do you claim meals? My last tax person gave me something on the "unreimbursed" meals. Meaning I can get money from teh state for 2 meals and a snack, but not the 2nd snack, so he would do something with that, but I'm not sure how he did that.
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Old 04-06-2018, 01:30 PM
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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.
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Old 04-06-2018, 01:48 PM
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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.
We broke even-ish this year without dependants (owed $80ish State). I guess that is the goal, but it felt anticlimactic.

Other time spent used to be something I often forgot to add in.
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Old 04-06-2018, 01:56 PM
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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.
How is t/s figured
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Old 04-06-2018, 02:08 PM
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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
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Old 04-06-2018, 02:20 PM
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How is t/s figured
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.
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Old 04-06-2018, 02:21 PM
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We broke even-ish this year without dependants (owed $80ish State). I guess that is the goal, but it felt anticlimactic.

Other time spent used to be something I often forgot to add in.
Yes, that is what we've been told too.
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.
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Old 04-06-2018, 02:45 PM
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Yes, that is what we've been told too.
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.
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.
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Old 04-06-2018, 03:16 PM
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Default meals/snacks

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I get all of that, I'm just thinking if there is something that I'm missing that I already spend money on. I just looked back at other taxes I had done by another person and with the food program, I can claim monthly 2 meals and a snack, so the statement I get at the end of the year says there are "unreimbursed meals like 2,200 of them" For that 3rd snack. My last tax person did something with that on my taxes to get more money back. This lady didn't do that. Does anyone know about that?
You can deduct up to one breakfast, one lunch, one supper and three snacks per day per child, if you serve that many. One snack for one child each day is worth a $189 deduction per year. Be sure to claim all of the snacks you serve.
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Old 04-06-2018, 03:38 PM
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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.
Oh gotya! That would be nice to have it separate!
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Old 04-06-2018, 03:40 PM
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You can deduct up to one breakfast, one lunch, one supper and three snacks per day per child, if you serve that many. One snack for one child each day is worth a $189 deduction per year. Be sure to claim all of the snacks you serve.
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.
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Old 04-06-2018, 03:48 PM
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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?
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Old 04-06-2018, 04:05 PM
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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.
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Old 04-06-2018, 04:09 PM
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Have you claimed any computer expenses? Paper, ink, software, repairs, internet?
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Old 04-06-2018, 04:22 PM
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Originally Posted by lovemykidstoo View Post
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?
To claim the other snack (over and above what you've been reimbursed for) you could add in another 1,296 snacks (based on the picture you posted), giving you an additional deduction of $946.08 at the current rates.

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
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Old 04-06-2018, 07:32 PM
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Have you claimed any computer expenses? Paper, ink, software, repairs, internet?
I have claimed internet. Is that a t/s deduction?

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.
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Old 04-06-2018, 07:33 PM
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To claim the other snack (over and above what you've been reimbursed for) you could add in another 1,296 snacks (based on the picture you posted), giving you an additional deduction of $946.08 at the current rates.

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
Boy that helps me alot! Can you tell me how to get that figure? How's it figured out?
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Old 04-06-2018, 08:44 PM
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Boy that helps me alot! Can you tell me how to get that figure? How's it figured out?
In this case I took the number of snacks you were reimbursed for (1296) and multiplied it by the IRS standard deduction rate of .73. I'm going on the assumption that you serve two snacks per day like I do, and so you can claim that extra snack as a deduction on top of what the FP reimburses you. The IRS says you can claim up to one breakfast, one lunch, one dinner and 3 snacks per day per child (assuming you actually served them that is) even though you're only reimbursed for a maximum of 3 per day with the CACFP.

Does that explanation help?
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Old 04-06-2018, 08:57 PM
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In this case I took the number of snacks you were reimbursed for (1296) and multiplied it by the IRS standard deduction rate of .73. I'm going on the assumption that you serve two snacks per day like I do, and so you can claim that extra snack as a deduction on top of what the FP reimburses you. The IRS says you can claim up to one breakfast, one lunch, one dinner and 3 snacks per day per child (assuming you actually served them that is) even though you're only reimbursed for a maximum of 3 per day with the CACFP.

Does that explanation help?
It does perfectly thank you! I serve breakfast, am snack, lunch and pm snack. So that pm snack I'm not reimbursed for. So that's how I can get this $946 deduction right?
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Old 04-06-2018, 09:04 PM
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I have claimed internet. Is that a t/s deduction?

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.
Any expenses that is used by both your business and your family can be deducted using your time-space%. No way your internet, cable tv and landline are used 100% for your business, but you could apply your time-space %. To claim your phone, you can deduct the first phone line, but you can deduct your time-space% of a second line.
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Old 04-06-2018, 09:06 PM
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It does perfectly thank you! I serve breakfast, am snack, lunch and pm snack. So that pm snack I'm not reimbursed for. So that's how I can get this $946 deduction right?
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.
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Old 04-06-2018, 09:10 PM
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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.
How do I keep records on that other than the attendance sheets? Thank you! You all have been lifesavers!
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Old 04-06-2018, 09:12 PM
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Any expenses that is used by both your business and your family can be deducted using your time-space%. No way your internet, cable tv and landline are used 100% for your business, but you could apply your time-space %. To claim your phone, you can deduct the first phone line, but you can deduct your time-space% of a second line.
Our last accountant did 100% on internet and cable. Hope I don't get in trouble for that. That's why I hired someone, I have no clue. This account did the t/s on it. I am writing off my landline, which is only about $50 a year since I use Magic Jack, but I think my husband may write off part of the cell phones since he has a carpet cleaning business. I'm assuming only 1 of us can write that off or can both of us?
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Old 04-07-2018, 03:14 AM
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Our last accountant did 100% on internet and cable. Hope I don't get in trouble for that. That's why I hired someone, I have no clue. This account did the t/s on it. I am writing off my landline, which is only about $50 a year since I use Magic Jack, but I think my husband may write off part of the cell phones since he has a carpet cleaning business. I'm assuming only 1 of us can write that off or can both of us?
My current tax guy asked me about what % is used. I told him 100% for paper, ink, and probably 75% for internet and other computer usage. I doubt I'd be on my computer much if not for dc.

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!
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Old 04-07-2018, 06:37 AM
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I wonder what the average t/s is that everyone normally does.
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Old 04-07-2018, 07:38 AM
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I wonder what the average t/s is that everyone normally does.
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%.
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Old 04-07-2018, 07:58 AM
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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%.
That helps thank you! She currently has me at 23%, which isn't even correct based on my attendance alone that I keep track of weekly. So first I need to get that figure right and then kinda take a look and average out what I spend doing all the things you mentioned. What about shopping for 100% daycare items, like if I go to the craft store. Does that count with travel time too?
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Old 04-07-2018, 11:21 AM
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How do I keep records on that other than the attendance sheets? Thank you! You all have been lifesavers!
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. 😄
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Old 04-07-2018, 12:27 PM
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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. 😄
I'm going to order Tom's book online today. I just called Barnes and Nobel and they don't have it in store, but I can order online. Can't I go by this statement from my food program for the end of the year that lists 1,296 snacks?
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Old 04-07-2018, 01:08 PM
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That helps thank you! She currently has me at 23%, which isn't even correct based on my attendance alone that I keep track of weekly. So first I need to get that figure right and then kinda take a look and average out what I spend doing all the things you mentioned. What about shopping for 100% daycare items, like if I go to the craft store. Does that count with travel time too?
Only thing you can do with the shopping, whether it be groceries(as long as over 50% is dc related) or crafts, materials, etc. is count your miles. If you travel for conferences or trainings, log your miles.
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Old 04-07-2018, 01:10 PM
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Yeh, 23% sounds awfully low. Mine runs anywhere from 28-32%, depending on how many hours I put in, in any given year.
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Old 04-07-2018, 02:31 PM
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How do I keep records on that other than the attendance sheets? Thank you! You all have been lifesavers!
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.
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Old 04-07-2018, 02:32 PM
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Originally Posted by lovemykidstoo View Post
Our last accountant did 100% on internet and cable. Hope I don't get in trouble for that. That's why I hired someone, I have no clue. This account did the t/s on it. I am writing off my landline, which is only about $50 a year since I use Magic Jack, but I think my husband may write off part of the cell phones since he has a carpet cleaning business. I'm assuming only 1 of us can write that off or can both of us?
You or your husband can't deduct any portion of the first phone line into your home. You can deduct part of a second line as can your husband.
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Old 04-07-2018, 02:35 PM
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I wonder what the average t/s is that everyone normally does.
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.
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Old 04-07-2018, 02:36 PM
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That helps thank you! She currently has me at 23%, which isn't even correct based on my attendance alone that I keep track of weekly. So first I need to get that figure right and then kinda take a look and average out what I spend doing all the things you mentioned. What about shopping for 100% daycare items, like if I go to the craft store. Does that count with travel time too?
You can't count time spent away from your home. So, shopping, going to the bank, grocery store, trainings, etc. don't count because you are not in your home.
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Old 04-07-2018, 02:37 PM
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I'm going to order Tom's book online today. I just called Barnes and Nobel and they don't have it in store, but I can order online. Can't I go by this statement from my food program for the end of the year that lists 1,296 snacks?
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.
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Old 04-07-2018, 02:58 PM
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Yeh, 23% sounds awfully low. Mine runs anywhere from 28-32%, depending on how many hours I put in, in any given year.
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%?
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Old 04-07-2018, 03:56 PM
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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%?
Tom will know. But again, you won't be able to include the shopping or trainings in the TS% because they're not done in your home. UNless you do online trainings, or homework from regular classes, at home.

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.
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Old 04-07-2018, 04:35 PM
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Tom will know. But again, you won't be able to include the shopping or trainings in the TS% because they're not done in your home. UNless you do online trainings, or homework from regular classes, at home.

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.
I do most, if not all of my trainings online, so I can do that? That makes complete sense about only things done in the home. Our trash pickup fee is in our taxes, which I'll take a % of. We don't get a separate bill for that. When I grocery shop, I would have to say at least 75% of the food I buy, the kids get too. We basically share all the food. Now, a few days ago I went to get things just for our dinner and I also had to get some white out, so I just paid for that separately, so I could claim the mileage. Is that wrong?

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?
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Old 04-07-2018, 07:36 PM
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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.
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
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Old 04-07-2018, 07:40 PM
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You or your husband can't deduct any portion of the first phone line into your home. You can deduct part of a second line as can your husband.
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?
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Old 04-07-2018, 07:44 PM
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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.
I have kids 5 days a week, 10 hours a day. Actually 10 hours and 10 minutes a day lol. When you talk about the average space percent, is that how much of my house that is used for daycare? I have a 4 bedroom ranch and the kids utilize every room except my small bathroom that is in my bedroom. If they're not playing in the rooms, they're sleeping in them.. So would mine be 100% or a bit less because of the bathroom?

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?
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Old 04-08-2018, 07:37 AM
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I have kids 5 days a week, 10 hours a day. Actually 10 hours and 10 minutes a day lol. When you talk about the average space percent, is that how much of my house that is used for daycare? I have a 4 bedroom ranch and the kids utilize every room except my small bathroom that is in my bedroom. If they're not playing in the rooms, they're sleeping in them.. So would mine be 100% or a bit less because of the bathroom?

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?
You would use your T/S percentage for any rooms you use for daycare that you ALSO use for personal use outside of daycare hours. Any room that you use ONLY for daycare and no other personal use (even storing personal items) is 100%.
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%.
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Old 04-08-2018, 10:09 AM
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You would use your T/S percentage for any rooms you use for daycare that you ALSO use for personal use outside of daycare hours. Any room that you use ONLY for daycare and no other personal use (even storing personal items) is 100%.
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%.
I guess this is just so confusing to me. I do have a 4th bedroom that is 100% used for daycare. I have 3 other bedrooms that are used sometimes for napping, some storage. Honestly I don't know if 1 of them is approved through licensing, only because I didn't think I'd need it for a portacrib. How can I figure this out? I am clueless. The kids use my kitchen/dining room, bathroom, living room
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Old 04-08-2018, 11:32 AM
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I guess this is just so confusing to me. I do have a 4th bedroom that is 100% used for daycare. I have 3 other bedrooms that are used sometimes for napping, some storage. Honestly I don't know if 1 of them is approved through licensing, only because I didn't think I'd need it for a portacrib. How can I figure this out? I am clueless. The kids use my kitchen/dining room, bathroom, living room
It can be confusing.
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!
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Old 04-08-2018, 11:49 AM
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It can be confusing.
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!
I understand about figuring the time part of how much I do in my house etc, but it's the square footage part that's hard for me. We have an 1800 square foot house. One bedroom 10 x 12 is used exclusively for daycare. There is 1 bathroom probably 4 X 6 that is not used at all. One of the bedrooms I'm not sure if I'm under licensing as using it, but I do have a little one sleep in a portacrib in there. Do the kids have to sleep in there or can you store things in a room and consider it part of your square footage? So when I figure out the square footage, what do I do with that and the time part? I know that my tax lady won't know how to do this because she has me at 23%, which is not right. I'm going to do it myself next year. I just bought Tom's book.
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Old 04-08-2018, 12:01 PM
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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!
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Old 04-08-2018, 01:46 PM
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It can be confusing.
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!
Holy cow, that's a huge savings, good for you!!! I'm trying to get ours down from $9,000. No way we owe that. She has to be doing something wrong.
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