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Daycare and Taxes>Tax Time Help!
Shelley525 08:17 AM 12-28-2009
I have been a provider for 6 years, I use every deduction I can think of but last year I owed 3,000 dollars!!! My preparer is an accountant and a provider as well. Do any of you do your own taxes with software? Do you ever get a refund? HELP!
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mac60 02:04 PM 12-28-2009
I never get a refund, and as far as I know, most providers don't, as they don't pay in taxes throughout the year. The way we do it, is my husband has a few extra $$$ taken out of his check for federal and state, then that applies towards mine when taxes are done. I always have to pay into city and school tax.

I know some say we should never have to pay in, but, I don't necessarily believe that, as I have had 2 different tax people over the years, and still come out making an income. I honestly don't know how some people come out not showing some kind of profit, I would think that would cause red flags, and that is what my second accountant told me.
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gbcc 04:02 PM 12-28-2009
I have been doing child care for four years now. I have always gotten a refund. I have a child to claim as a dependent so that helps. I am also very petty and claim everything. Including a portion of utilities, insurance, toilet paper, food, litterally everything is claimed. I was audited my second year but I kept all my receipts so I was ok. Most of my provider friends that have children get a good size refund. I do know a couple providers that don't have small children to claim and they pay in. One actually went back to work after 2 years of paying in.
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momofsix 05:18 PM 12-28-2009
We always get a refund, but mainly b/c we have had 6 kids of our own to claim, so our taxable income after we itemize is zero or close to it. Our refunds are getting smaller though every year as our children are getting too old to qualify for the extra tax credit. (even though older kids are just as expensive as younger ones--especially in this economy when they can't find jobs)
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originalkat 09:08 PM 12-28-2009
We always get a refund. We do have 2 children to claim. Since my husband is in the Military a lot of our income is not taxable (housing allowance) so it makes us have a lower yearly income so we have qualified for the earned income credit in the past. Last year I owed like $400 in taxes from my business but we already had a refund from everything else so it was just deducted like that.

I use a childcare management program throughout the year. Here is the link to what I use. http://www.minutemenu.com/web/mmkids.html
They charge a yearly fee $65 for the first year and $35 each year thereafter. It is totally worth it. You can use it for so many things. I use it for accounting and tax recording on a regular basis. At the end of the year I can print out all my tax forms that I need (they update new forms and laws for the new year).

You should be deducting your Time/Space Percentage (mine is 29% this year)
for the following all year:
Home Mortgage Interest
Home Insurance
Home Taxes
Cable/Int
Gas
Electric
Water/sewer
Trash
Phone (if it's the second line into home)
Food (I use the standard meal deduction)
Supplies
Curriculum
Toys
Home Maintenance
Home Repair
Equipment
Etc...Etc... Etc...

Not to mention mileage, home depretiation, and a multitude of other potential deductions.

If you do not have Family Childcare Record Keeping Guide by Tom Copeland it is a MUST for every provider in my opinion. Here is the link. http://www.amazon.com/Family-Child-C.../dp/1929610491

Last year we had our taxes done by a "professional". Never again! Most tax professionals do not know about the details of family childcare. I knew more than he did (from reading the book above) and we were charged an arm and a leg! I am doing them myself from now on.

Hope this helps!
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jen 09:52 PM 12-28-2009
We always get a refund...everything my husband pays in plus our tax credit for families. My Dad used to do my taxes...he is retired but he was the division chief for the collections department of the IRS...but after a few years I started doing it myself with Turbo Tax. The small business version has all the information for daycare that you need!
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jen 09:55 PM 12-28-2009
Originally Posted by mac60:
I never get a refund, and as far as I know, most providers don't, as they don't pay in taxes throughout the year. The way we do it, is my husband has a few extra $$$ taken out of his check for federal and state, then that applies towards mine when taxes are done. I always have to pay into city and school tax.

I know some say we should never have to pay in, but, I don't necessarily believe that, as I have had 2 different tax people over the years, and still come out making an income. I honestly don't know how some people come out not showing some kind of profit, I would think that would cause red flags, and that is what my second accountant told me.
I do show a proft however it is never enough to cause me to pay in, or to offset what my husband has paid in. Do you have minor children? That makes a big difference because of the tax credits.
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tymaboy 06:51 AM 12-29-2009
We got a refund from State but had to pay a couple 100 into Fed. My DH also has extra taxes taken out of his check to help with the taxes.
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Unregistered 01:25 PM 12-31-2009
I use quickbooks and I do my own. I get back around 2,000 a years, But my husband has been a student which helps. Been doing my own for about 10 years.
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terrivh 10:03 AM 01-01-2010
Just found this person and comes highly recommened. Books by Kelly. She has several different options. i am debating on using her. it is $45.00 per month for her to do all your reciepts. you mail to her and she has bookeepers that input and you get everything you need at end of year or she can do taxes for you.

She use to do daycare and is a bookeeper. Sounds really interesting. Can be done by mail or if you have working email she emails you all the info. The only down fall is you need to make sure all reciepts in to her by 8th in good condition or there is a daily late feel.

Might give it a shot
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Tags:accountant, deductions, taxes
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