hello I was wondering how you figure out what to set aside monthly for food and for income tax. Can you please help me figure out how to do this. I do not have one yet but we want to and want to figure out all the details any help would be great!!!

Reply

If you are licenced or become licenced you can get on the federal food program. It's through the Dept of Agriculture. I hear it doesn't pay a ton but can help with the food bill. The budget for food will vary. What will you be serving, how many children you will have, etc. If you do, say, 10 hours a day, that's 2 meals and a snack. The cost here on average for each child per day is about $5 but that can really vary. As far as taxes go, they say 30%. Again, if you are licenced you can deduct a percentage of your utilities, mortgage, wear and tear on your home, etc. There is a specific formula for that. I googled tax deductions or tax prep for home daycares and there was tons of info. Most people usually have an expert do the taxes the first year so you know what you can and can't deduct and if you should pay quarterly or once a year. Hope that helps.

Reply