Daycare.com Forum
Daycare and Taxes>Help Tom!
bzzzybee 11:03 AM 03-07-2014
I opened my daycare June 3, 2013. Prior to that I worked outside the home and my husband does as well. We decided to use a tax preparer to help us file this first year since they know daycare taxes. Anyway combined last year my husband and I made roughly over $64,000. I did not make any quarterly tax payments either. The tax preparer said I owe $14,255 in federal. Does this seem right to you? I do not think it should be that high!!!
I know this is probably difficult to assess with the little info I've given.
I know this is probably difficult to assess with the little info I've given.
ColorfulSunburst 12:55 PM 03-07-2014
TwinKristi 12:59 PM 03-07-2014
Well I'm not Tom but I don't know how that's even possible. You can calculate a tax rate for that much income, especially if you worked a job that took taxes out, I can't imagine you having to pay so much! That's over a 20% tax... include anything you paid, deductions... yeah that's impossible! Even if you didn't pay a dime in taxes all year, there's a standard deduction...
I would find a new tax person!!
I would find a new tax person!!
bzzzybee 02:02 PM 03-07-2014
Well apparently there was a software error and it was adding over $11,000 in taxes that I don't owe. That was good news, the disappointing thing is that it was caught because I said that sounded outrageous! Next year I'm doing my own taxes!
TwinKristi 02:07 PM 03-07-2014
Originally Posted by bzzzybee:
Well apparently there was a software error and it was adding over $11,000 in taxes that I don't owe. That was good news, the disappointing thing is that it was caught because I said that sounded outrageous! Next year I'm doing my own taxes!
HA! Software error? LOL Well apparently there was a software error and it was adding over $11,000 in taxes that I don't owe. That was good news, the disappointing thing is that it was caught because I said that sounded outrageous! Next year I'm doing my own taxes!
that's a good one! Imagine how many people just write a check and don't think twice when their tax prep says what they owe!
bzzzybee 02:51 PM 03-07-2014
Originally Posted by TwinKristi:
HA! Software error? LOL that's a good one! Imagine how many people just write a check and don't think twice when their tax prep says what they owe!
Seriously!! I don't even know why it took me questioning it to make her double check what happened.HA! Software error? LOL
that's a good one! Imagine how many people just write a check and don't think twice when their tax prep says what they owe!
daycare 02:56 PM 03-07-2014
by any chance did you go to HR Block... my first year in DC I went there and they told me I was going to owe $9k.
I researched other CPA, talked to other providers in my area see who they used and went there. Got a refund of $800.00
I researched other CPA, talked to other providers in my area see who they used and went there. Got a refund of $800.00
SilverSabre25 03:06 PM 03-07-2014
I do my own taxes every year with TurboTax. easy peasy and it even remembers a lot of the info from year to year!! I do have to pay for Turbo Tax and use the business version (I just do it online) but you can have the payment deducted from your refund and your refund direct deposited so it doesn't matter. HIGHLY recommend. If you use Minute Menu Kids to keep track of stuff, then you're even MORE in the "easy peasy" place.
bzzzybee 05:34 PM 03-07-2014
Originally Posted by daycare:
by any chance did you go to HR Block... my first year in DC I went there and they told me I was going to owe $9k.
I researched other CPA, talked to other providers in my area see who they used and went there. Got a refund of $800.00
No, I found a place that the owner knows all about daycare taxes apparently (said she learned it after reading Toms stuff), however a different employee prepared ours and had never done daycare taxes before. by any chance did you go to HR Block... my first year in DC I went there and they told me I was going to owe $9k.
I researched other CPA, talked to other providers in my area see who they used and went there. Got a refund of $800.00
She just got back to me saying instead of owing a little over $1,400 in federal I now owe a little over $1,700 in federal because I can't depreciate appliances. Is this true? I bought my home in 2012 and the house came with the dishwasher and oven. I bought the microwave and fridge shortly after moving in. The fridge cost over $1,000 and the microwave was around $200 I believe. I was under the impression that they could be depreciated.
TomCopeland 07:15 AM 03-08-2014
Originally Posted by bzzzybee:
No, I found a place that the owner knows all about daycare taxes apparently (said she learned it after reading Toms stuff), however a different employee prepared ours and had never done daycare taxes before.
She just got back to me saying instead of owing a little over $1,400 in federal I now owe a little over $1,700 in federal because I can't depreciate appliances. Is this true? I bought my home in 2012 and the house came with the dishwasher and oven. I bought the microwave and fridge shortly after moving in. The fridge cost over $1,000 and the microwave was around $200 I believe. I was under the impression that they could be depreciated.
You are depreciating the dishwasher and oven as part of the cost of the home. Of course you can depreciate the fridge and microwave. If the microwave cost less than $200 you can deduct it in one year. Tell the taxpreparer to read the IRS Child Care Audit Techniques Guide: http://www.irs.gov/Businesses/Small-...echnique-GuideNo, I found a place that the owner knows all about daycare taxes apparently (said she learned it after reading Toms stuff), however a different employee prepared ours and had never done daycare taxes before.
She just got back to me saying instead of owing a little over $1,400 in federal I now owe a little over $1,700 in federal because I can't depreciate appliances. Is this true? I bought my home in 2012 and the house came with the dishwasher and oven. I bought the microwave and fridge shortly after moving in. The fridge cost over $1,000 and the microwave was around $200 I believe. I was under the impression that they could be depreciated.
bzzzybee 08:46 AM 03-08-2014
Originally Posted by TomCopeland:
You are depreciating the dishwasher and oven as part of the cost of the home. Of course you can depreciate the fridge and microwave. If the microwave cost less than $200 you can deduct it in one year. Tell the taxpreparer to read the IRS Child Care Audit Techniques Guide: http://www.irs.gov/Businesses/Small-...echnique-Guide
I'll have to double check the price we paid for the microwave but if it's less than $200 I can deduct it now even though I bought it in 2012?You are depreciating the dishwasher and oven as part of the cost of the home. Of course you can depreciate the fridge and microwave. If the microwave cost less than $200 you can deduct it in one year. Tell the taxpreparer to read the IRS Child Care Audit Techniques Guide: http://www.irs.gov/Businesses/Small-...echnique-Guide
TomCopeland 03:26 PM 03-08-2014
Originally Posted by bzzzybee:
I'll have to double check the price we paid for the microwave but if it's less than $200 I can deduct it now even though I bought it in 2012?
If you bought it in 2012, you should depreciate it. The $200 rule started in 2013.I'll have to double check the price we paid for the microwave but if it's less than $200 I can deduct it now even though I bought it in 2012?