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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.

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Old 02-23-2021, 06:42 AM
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MusicTatter MusicTatter is offline
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Question Kith & Kin

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
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Old 02-23-2021, 08:05 AM
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Originally Posted by MusicTatter View Post
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.
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Old 02-23-2021, 09:34 AM
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Thank you. This was a surprise for me and I just want the K.I.S.S. path at least for 2020 until I can get the understanding for this process. To me acting as a Grandmother to these 2 kids, It seems like a lot of work that I wasn't counting on.
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Old 02-23-2021, 09:59 AM
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Originally Posted by MusicTatter View Post
Thank you. This was a surprise for me and I just want the K.I.S.S. path at least for 2020 until I can get the understanding for this process. To me acting as a Grandmother to these 2 kids, It seems like a lot of work that I wasn't counting on.
If you use the KidKare program it is super easy. It is only $8 a month and tells you how to do everything. You just hit print once per year. https://app.kidkare.com/ The parents can even pay you through direct deposit so you have proof of employment for any loans you may be looking at later. Then you can print off their tax forms to help them, too.

I think they still do 30 days, free, to give you a chance to see if you like it. Can't hurt to play around with it to learn.
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Old 02-23-2021, 10:02 AM
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Thanks! I will look into it. I'm just trying to find what basic sheets I need to use for filing 2021. I think I'm just going to see what I can claim for 2020 like the meals. As I don't really have records that'll be my best shot. I just hope I don't have to pay much as I haven't saved for it.
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Old 02-23-2021, 11:34 AM
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Originally Posted by MusicTatter View Post
Thanks! I will look into it. I'm just trying to find what basic sheets I need to use for filing 2021. I think I'm just going to see what I can claim for 2020 like the meals. As I don't really have records that'll be my best shot. I just hope I don't have to pay much as I haven't saved for it.
By the time you do your time/space for all utilities, cleaning supplies, household items, paper goods, art supplies, toys, mileage, etc. then add all of your meal deductions, I think you will be pleasantly surprised.

Just record meal counts, receipts and attendance daily. Then "other hours" doing things like mowing, raking, pressure washing, shopping, training, researching crafts, writing curriculum, etc. The program does all the forms for you.
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