So, I am sitting here doing everything that I need to do for taxes this year. I am at awe! Because I feel like my numbers are high, but everything is legit! Here is a breakdown.

Income - $35,739
Deductions (Food, toys, ext ext) $26,440
Insurance/Office expenses $3,077
Utilities - $4707
= $34,224

- $1,515

This is not even with my mileage :-/
I know last year I had a loss of around $6,000
These numbers are rounded to the nearest dollar.


Is this to much for my second year in business?

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Please give your opinion Tom :-)

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I have a professional accountant do my taxes (bc my DH's dad owns his own company and I get it done free!!)
this is exactly how MINE LOOKS! I too make around 26,000 and by the end of claiming EVERYTHING I am allowed, I end up either being in the red or breaking even. It came up in a conversation once with someone I am close to and she was worried for me bc she said " arent they going to audit you? They are going to wonder how you survive!?" but I explained that I also have my DH's income to live on ... and a large percentage of my HEATING, ELECTRIC, PHONE, CABLE, INTERNET, INSURANCE, CAR, GAS ect is deductable, where HERS isnt.. and my bills arent that much higher than hers...
the one thing I am concerned about is former parents that now have my EIN and can try to claim they paid me when they didnt. I get paid ALL in cash, no one ever asks for receipts and no one has ever handed me anything to fill out... a few just asked for my EIN. I dont mind providing it, of course, but what stops them from claiming daycare payments that I didnt receive?? would the government go after THEM or ME?? OR BOTH?? Would they have to prove they paid? or would i get audited and have to go through hell if they see people claiming a combined $30,000 a year when I actually only received $25,000. ugh.. hate tax season!!!!!!

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I know I dislike tax season luckily I give my parents the forms they need and make them sign a copy for my records! Most of my parents pay me with checks so I have a good paper trail

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Wow! I said it in a previous post, but how in the world can you guys write off so much? My t/s % is 53%, and I still can't. Maybe because I don't spend much money, although it feels like it sometimes.

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My t/s is only 35, I have bought alot of the daycare, I was only open 3 months of the year last year. So I still had so much more to get

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I think you might have a better chance of having Tom chime in if you posted in the taxes forum.

I can move the thread if you want.

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Yes blackcat that would be awesome! I was posting from my phone and didn't pay attention :/ thank you!

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I know it may seem high however keep in mind also that if your spouse or significant other also buys a portion of any of the things that you are deducting it still counts as a deduction even though the money didn't come from you. In other words you have deductions from 2 sources but only one source of income (yours) that you are accounting for in your business taxes.

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Can I ask how you are at 35% if you were only open 3 months? I started in July/August time frame and I am only coming up with 10%. Thanks

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I was open a full year (2012), but only open 3 months in (2011)

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Still getting used to 2013!

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Oh, I see. I was excited there for a minute thinking I didn't do the math correctly. darn

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sorry about that!

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I moved the thread. I am sure Tom will be along soon.

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Thank you!

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That's the wrong question. The right question is, "Do I have receipts and other records for the expenses I am putting on my tax forms?"
You can only deduct the time-space % of your utilities and other items that are used for business and personal purposes.

On February 12th I'll be doing a webinar: "Tax Changes for 2012: How to Avoid Mistakes on your Tax Return" To register http://events.r20.constantcontact.co...&llr=yatrx4cab

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