Daycare.com Forum
Daycare Center and Family Home Forum>Does Everyone Claim Taxes
MommyofThree 10:48 AM 01-06-2012
Ok so I am new to all this and some parents say if they can pay just when kids are here then they wont claim me . So should I give them that option. Who claims the money or who does it under the table. Is it illegal? If you claim how much do you pay or what percentage. Im so lost.
busymommy0420 10:53 AM 01-06-2012
I claim 100% of the money I make for daycare regardless if the family uses it as a deduction or not. I would rather be safe then sorry and pay my taxes on the money I make. I do think it is illegal to not claim money earned. 
~There are so many deductions you can make as a business owner to offset the taxes. (Portion of your mortgage, gas, water bill, electricity, food, postage stamps, toys) Tons more. Keep good records!!!!
~There are so many deductions you can make as a business owner to offset the taxes. (Portion of your mortgage, gas, water bill, electricity, food, postage stamps, toys) Tons more. Keep good records!!!!
MommyofThree 10:54 AM 01-06-2012
Originally Posted by busymommy0420:
I claim 100% of the money I make for daycare regardless if the family uses it as a deduction or not. I would rather be safe then sorry and pay my taxes on the money I make. I do think it is illegal to not claim money earned.
~There are so many deductions you can make as a business owner to offset the taxes. (Portion of your mortgage, gas, water bill, electricity, food, postage stamps, toys) Tons more. Keep good records!!!!
Ok but do you have to keep recipts?I claim 100% of the money I make for daycare regardless if the family uses it as a deduction or not. I would rather be safe then sorry and pay my taxes on the money I make. I do think it is illegal to not claim money earned.
~There are so many deductions you can make as a business owner to offset the taxes. (Portion of your mortgage, gas, water bill, electricity, food, postage stamps, toys) Tons more. Keep good records!!!!
Cat Herder 10:55 AM 01-06-2012
Originally Posted by melissathayer28:
Is it illegal?
It is my understanding that it is.Is it illegal?
"Under the table" income is something tax auditors are looking for.
MommyofThree 10:56 AM 01-06-2012
Originally Posted by Catherder:
It is my understanding that it is.
"Under the table" income is something tax auditors are looking for.
Ok so what percentage out of the weekly money do I put away?It is my understanding that it is.
"Under the table" income is something tax auditors are looking for.
Cat Herder 10:58 AM 01-06-2012
Originally Posted by melissathayer28:
Ok so what percentage out of the weekly money do I put away?
I am ALWAYS full, all full-time, and I have never earned enough to have to pay. Ok so what percentage out of the weekly money do I put away?
Check out Toms thread/forum.... he goes over this stuff quite a bit.
After all the meal deductions, time space, supplies, etc... I get a hefty refund every year.
MommyofThree 10:59 AM 01-06-2012
Originally Posted by Catherder:
I am ALWAYS full, all full-time, and I have never earned enough to have to pay.
Check out Toms thread/forum.... he goes over this stuff quite a bit.
After all the meal deductions, time space, supplies, etc... I get a hefty refund every year.
NICE:} Thanks.I am ALWAYS full, all full-time, and I have never earned enough to have to pay.
Check out Toms thread/forum.... he goes over this stuff quite a bit.
After all the meal deductions, time space, supplies, etc... I get a hefty refund every year.
beachgrl 11:00 AM 01-06-2012
I am dreading this bc i have put nothing back, havent been able to afford to and i really need to start calling around to see if i can find a reasonably priced cpa that can do my taxes for me. I normally file online but with the deductions and all and me working the first half the year still teaching, idk how it will all come together, ugh
melissa ann 11:02 AM 01-06-2012
My most recent interview, the parents asked if I file my income. I said yes. They said one of their providers did and the other did not.
I don't know why anyone would take the risk of not filing. I have always filed even if my parents did not claim it.
Yes you need receipts. If you take the standard meal deductions, then you don't need the food receipts. But everything else yes.
I use MMK and file my expenses within a day of 2 and put all my receipts in a box by my computer. Once you get into the habit of recording your expenses and keeping your receipts, you'll find that it doesn't take long, and makes it a heck of lot easier at tax time because with MMK, they do all the work. All I have to do is print out the forms.
I don't know why anyone would take the risk of not filing. I have always filed even if my parents did not claim it.
Yes you need receipts. If you take the standard meal deductions, then you don't need the food receipts. But everything else yes.
I use MMK and file my expenses within a day of 2 and put all my receipts in a box by my computer. Once you get into the habit of recording your expenses and keeping your receipts, you'll find that it doesn't take long, and makes it a heck of lot easier at tax time because with MMK, they do all the work. All I have to do is print out the forms.
MommyofThree 11:03 AM 01-06-2012
Originally Posted by beachgrl:
I am dreading this bc i have put nothing back, havent been able to afford to and i really need to start calling around to see if i can find a reasonably priced cpa that can do my taxes for me. I normally file online but with the deductions and all and me working the first half the year still teaching, idk how it will all come together, ugh
If you go to H and R block on line that helps you step by step.I am dreading this bc i have put nothing back, havent been able to afford to and i really need to start calling around to see if i can find a reasonably priced cpa that can do my taxes for me. I normally file online but with the deductions and all and me working the first half the year still teaching, idk how it will all come together, ugh
busymommy0420 11:04 AM 01-06-2012
Originally Posted by melissathayer28:
Ok but do you have to keep recipts?
Oh yes, I opened in March so I have only been in business less then a year. I have receipts for everything! I made 16K from the parents payments but have tons of deductions off that income. I think I will not have to pay anything at all, I am a Mommy of four as well. Get a GOOD Accountant who is familiar with home daycare businesses.Ok but do you have to keep recipts?
MommyofThree 11:48 AM 01-06-2012
Ok so she I tell parents to pay then even if they don't come like on holidays.? Does anybody who claims only have parents pay when they are there, thanks
busymommy0420 11:52 AM 01-06-2012
My parents get 10 days off a year that's it!!! I get paid no matter if they are here or not. I get paid on holidays as well.
MommyofThree 11:58 AM 01-06-2012
Originally Posted by busymommy0420:
My parents get 10 days off a year that's it!!! I get paid no matter if they are here or not. I get paid on holidays as well.
But how do you do that with part timers that have diff days every weekMy parents get 10 days off a year that's it!!! I get paid no matter if they are here or not. I get paid on holidays as well.
sharlan 12:05 PM 01-06-2012
I have found that it's in my best interest to claim my income. I have so many deductions that I've rarely had to pay anything.
It doesn't matter whether or not the parents tell you that they are going to claim you or not, they have that right. They can even file without your SS#.
It doesn't matter whether or not the parents tell you that they are going to claim you or not, they have that right. They can even file without your SS#.
MommyofThree 12:06 PM 01-06-2012
Originally Posted by sharlan:
I have found that it's in my best interest to claim my income. I have so many deductions that I've rarely had to pay anything.
It doesn't matter whether or not the parents tell you that they are going to claim you or not, they have that right. They can even file without your SS#.
how can they file without the ssI have found that it's in my best interest to claim my income. I have so many deductions that I've rarely had to pay anything.
It doesn't matter whether or not the parents tell you that they are going to claim you or not, they have that right. They can even file without your SS#.
sharlan 12:09 PM 01-06-2012
I believe that there is a form that they can file stating that you refused to provide the SS#.
Blackcat31 12:11 PM 01-06-2012
Originally Posted by melissathayer28:
how can they file without the ss
The IRS web site says "If you do not provide information regarding the care provider, you may still be eligible for the credit if you can show that you exercised due diligence in attempting to provide the required information."how can they file without the ss
Many times providers will with hold their EIN or SS #'s if the parent still owes them money. Many providers think that stops a parent from being able to claim what they did pay.
sharlan 12:13 PM 01-06-2012
I also found that it's a $50 fine.
Meyou 12:21 PM 01-06-2012
Originally Posted by Catherder:
I am ALWAYS full, all full-time, and I have never earned enough to have to pay.
Check out Toms thread/forum.... he goes over this stuff quite a bit.
After all the meal deductions, time space, supplies, etc... I get a hefty refund every year.
Me too. I am ALWAYS full, all full-time, and I have never earned enough to have to pay.
Check out Toms thread/forum.... he goes over this stuff quite a bit.
After all the meal deductions, time space, supplies, etc... I get a hefty refund every year.
Sunchimes 12:31 PM 01-06-2012
Ok, here's my advice. I've just been doing this for 10 months, but I have been running my own business since 1980. Pay your taxes, don't worry about what anyone else does.
If your spouse works and has taxes deducted, you probably won't owe anything for your part. If not, then you need to pay quarterly-every Jan 15, April 15, June 15, and September 15. There is still time to pay the Jan payment and possibly avoid penalties in April. If you can't send them, say 15% or 18%, don't worry about it. There will be penalties, but you can deal with that then. Make a payment plan if nothing else. Just be sure your tax person sets you up with a 1040 ES system for 2012.
Second, buy Tom's books. http://www.tomcopelandblog.com/toms-books-.html Best thing I ever did. I suggest this order.
1. Family Child Care Record Keeping Guide It is the basics and tell you what deductions you can take, how to figure time/space (which is vital--underlined, highlighted, and bolded!)
2. Next best is the Family Child Care Tax Companion, if you are having someone else do your taxes. Child care taxes are a whole other ball game from most businesses. This has pages that you can fill in and give to your tax person. Then, use the info to double check the tax person's work to be sure they didn't leave anything out. I'm giving the Record Keeping Guide and the Tax Companion to my tax person when I give them my paperwork. Just so she will know what's going on in child care.
3. I'm not on a food program and I use the Redleaf Calendar Keeper for my records. I adore it!! http://www.redleafpress.org/Redleaf-...P579C1047.aspx
3. Get an employer identification number-EIN. Get it at irs.gov. It's easy to get online (or you can do it by phone), it's free, and you never have to give parents your SS# again.
If you do your own taxes, get the Tax Workbook and Organizer.
Tom wrote a blog post about receipts, etc
http://www.tomcopelandblog.com/2012/...a-receipt.html
I'm certainly not an expert on child care taxes, but I've been a business owner for a long, long time and have learned a thing or two. The first thing is to listen to the experts. In this case, that would be Tom Copeland. Go to the taxes forum here and read back through old posts. Go to Tom's blog and read back through old posts. http://tomcopelandblog.typepad.com/t...ds-taking-car/
Ask questions here, but in the tax forum. Tom checks that regularly and will answer our questions, bless his heart.
If your spouse works and has taxes deducted, you probably won't owe anything for your part. If not, then you need to pay quarterly-every Jan 15, April 15, June 15, and September 15. There is still time to pay the Jan payment and possibly avoid penalties in April. If you can't send them, say 15% or 18%, don't worry about it. There will be penalties, but you can deal with that then. Make a payment plan if nothing else. Just be sure your tax person sets you up with a 1040 ES system for 2012.
Second, buy Tom's books. http://www.tomcopelandblog.com/toms-books-.html Best thing I ever did. I suggest this order.
1. Family Child Care Record Keeping Guide It is the basics and tell you what deductions you can take, how to figure time/space (which is vital--underlined, highlighted, and bolded!)
2. Next best is the Family Child Care Tax Companion, if you are having someone else do your taxes. Child care taxes are a whole other ball game from most businesses. This has pages that you can fill in and give to your tax person. Then, use the info to double check the tax person's work to be sure they didn't leave anything out. I'm giving the Record Keeping Guide and the Tax Companion to my tax person when I give them my paperwork. Just so she will know what's going on in child care.
3. I'm not on a food program and I use the Redleaf Calendar Keeper for my records. I adore it!! http://www.redleafpress.org/Redleaf-...P579C1047.aspx
3. Get an employer identification number-EIN. Get it at irs.gov. It's easy to get online (or you can do it by phone), it's free, and you never have to give parents your SS# again.
If you do your own taxes, get the Tax Workbook and Organizer.
Tom wrote a blog post about receipts, etc
http://www.tomcopelandblog.com/2012/...a-receipt.html
I'm certainly not an expert on child care taxes, but I've been a business owner for a long, long time and have learned a thing or two. The first thing is to listen to the experts. In this case, that would be Tom Copeland. Go to the taxes forum here and read back through old posts. Go to Tom's blog and read back through old posts. http://tomcopelandblog.typepad.com/t...ds-taking-car/
Ask questions here, but in the tax forum. Tom checks that regularly and will answer our questions, bless his heart.
Nellie 01:17 PM 01-06-2012
Originally Posted by melissathayer28:
Ok so she I tell parents to pay then even if they don't come like on holidays.? Does anybody who claims only have parents pay when they are there, thanks
I file taxes even though the parents only pay when there child is in attendance.Ok so she I tell parents to pay then even if they don't come like on holidays.? Does anybody who claims only have parents pay when they are there, thanks
Breezy 01:44 PM 01-06-2012
I have not had to claim anything yet as I do not make enough in my state to have to.