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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc. |
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#1
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Ugh, Taxes Just Got Done
Oh my gosh I hate having my taxes done. I don't pay quarterly, so I guess I have to expect it.
What did everyone end up with for t/s%? I ended up with 34.31% |
#2
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Quarterly Taxes
So...I guess I didn't realize that I need to pay quarterly taxes and now I'm freaking out about penalties. I guess some lessons are more expensive than others. This was my first full year of daycare and I just didn't comprehend that I should pay throughout the year. Oh well.
I'm getting my taxes done this weekend, but I used Tom Copeland's Tax workbook and figured my t/s is about 40% |
#3
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I think my T/S% is a hair over 30%. |
#4
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Mine was 32.7% this year.
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#5
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I've never paid quarterly either because it seems so much more complicated. I am starting this year. I've printed the 2019 Form 1040-ES and am still reading. I hope to have it figured out by Wednesday because the first 2019 payment is due April 15th.
__________________
- Unless otherwise stated, all my posts are personal opinion and worth what you paid for them. |
#6
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My TS is 40%.
It was at 35-38% in the past until I realized that storage space counts! I'm still finishing up my taxes. I'm super frustrated with Turbo Tax this year. It seems like I've run into so many bugs in the system. I always thought I knew taxes pretty well, but some of these changes (and new home circumstances for me) have me scratching my head. I have paid in estimated taxes in the past when I knew I wasn't going to buy much in the coming year. But, with a spouse who is W2'd, it doesn't make much sense to do it (for me). BTW, I've never seen or heard of anyone actually being penalized for underpayment. I don't think we make enough to justify the IRS coming after the added peanuts. |
#7
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I think I'll buy some new appliances, you know, for the daycare |
#8
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#9
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space%
To claim a room as regularly used for your business it needs to be used more than "occasionally." If you use it 2-3 times per week to go in there to get stuff for your business, that's regularly used. Storage of two books, no.
__________________
http://www.tomcopelandblog.com |
#10
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I was just being a smartypants lol. If I keep the portacribs in her closet does that work? I have them in the hall closet now, but would gladly move them if I include that space thereby increasing my t/s%
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#11
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I just realized I could count my basement and garage in my total square footage if I store things in those areas, which I do. This would more than double my square footage so I thought it would really bump up my t/s. My husband didn’t think that would change it much. He thought getting my time up would change it a lot more. I do only work 4 days a week so maybe that is why?
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#12
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#13
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time-space%
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__________________
http://www.tomcopelandblog.com |
#14
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My t/s% was just a shy over 25%. Quite a bit less then some of you, and I thought mine was high!
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#15
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So... just finished my taxes and since we talked about penalties, I thought I'd update here.
My situation: Married, filing jointly. Spouse is a W2 employee. Did not pay any estimated taxes for 2018. Sold and bought a new home (some capital gains in there) with quite a bit of expenses for the daycare at the new residence. MN full year resident. Federal: $80 refund State: Owe $600 with a $5 underpayment penalty First time that's ever happened. I was surprised on all the changes to credits and deductions this year. But, I ended up not doing too bad since we usually owe Federal $500-$1000 in the past. |
#16
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#17
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You can get an underpayment penalty? What does this mean? I was under the impression that making quarterly payments was optional. I make them as I don’t want to be paying in 6K every year. My estimated payments were off and I owed like $1.3K this year and that was no fun but I don’t think I paid any penalties.
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#18
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I'm so glad I'm not the only one who is majorly confused.
We're getting our taxes done tomorrow. I'm going to ask our tax person what I should have done last year/should do this year. If I get and good information, I'll let you guys know.
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#19
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From the IRS website: The United States income tax system is a pay-as-you-go tax system, which means that you must pay income tax as you earn or receive your income during the year. You can do this either through withholding or by making estimated tax payments. If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller. There are special rules for farmers and fishermen, certain household employers and certain higher income taxpayers. For more information, refer to Publication 505, Tax Withholding and Estimated Tax. |
#20
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t/s
mine was 37%. Everyone needs to read Tom Copeland's audit archives to see what gets you audited. Practice aggressive tax avoidance NOT evasion/fraud.
http://tomcopelandblog.com/irs-auditsdocuments |
#21
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#22
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When I had mine done, I had these categories listed on my return: Utilities (electric, gas, water) Cable/Internet Business Supplies/toys Activity Expenses Gifts Household (paper products, cleaning, light bulbs, basically anything I bought for the house including towels, toaster, utensils). Mileage Property taxes Daycare Insurance House Insurance Tom should I have more categories than this? Spread them out more? Is there any I'm missing that I could claim? |
#23
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time-space%
There is a comprehensive discussion of how to calculate your time-space percentage in my Family Child Care Record Keeping Guide.
__________________
http://www.tomcopelandblog.com |
#24
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expense categories
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My Family Child Care Record Keeping Guide lists over 1,000 allowable deductions.
__________________
http://www.tomcopelandblog.com |
Tags |
audit, taxes, tom copeland |
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