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Daycare and Taxes>Income After Deductions
Unregistered 09:24 AM 10-22-2012
I have been doing child care in my home for several years. Every year, my husband seems to think I am not deducting everything I can. I am just curious, what do most others take in and what is your bottom line at the end of the year.
I am logged out for privacy since I am entering my income.
Last year mine was $58,000 (watching 7 kids) and ended up at $30,000 after all deductions.
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Unregistered 09:47 AM 10-22-2012
$70,000 with 8 kids ft.
After $32,000
Interesting, I agree, but agree not to use personal info.
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nanglgrl 09:53 AM 10-22-2012
Mine is right about the same and I usually get it down to about $20,000 but I spend a lot on my daycare.
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Country Kids 02:16 PM 10-22-2012
Wow! You guys make a ton of money.

Even with 6 full-timers my max might be between $30-$35 thousand a year.
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Unregistered 05:22 PM 10-22-2012
I'm an active poster here.

I make about $75,000ish before deductions.
I think that I will only be deducting about 10-20,000 but I really don't know because I have put it all into MMK yet (so I have no "general idea"). I'm sure that I don't deduct everything that I could. I really need to sit down and input it all.
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dave4him 05:48 PM 10-22-2012
I dont think i am making anything But it beats the alternative
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suehelen 12:50 PM 01-02-2013
Gross is about $70K. I can usually get my net down to about $20K.
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TomCopeland 01:02 PM 01-02-2013
Originally Posted by Unregistered:
I have been doing child care in my home for several years. Every year, my husband seems to think I am not deducting everything I can. I am just curious, what do most others take in and what is your bottom line at the end of the year.
I am logged out for privacy since I am entering my income.
Last year mine was $58,000 (watching 7 kids) and ended up at $30,000 after all deductions.
I list over 1,000 allowable deductions in my book Family Child Care Record Keeping Guide: http://www.tomcopelandblog.com/famil...h-edition.html It's now available as an e-book on Kindle, Nook and iPad.
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Unregistered 01:04 PM 01-02-2013
Wow! How do you do that???? What areas are your biggest deductions??
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MarinaVanessa 02:59 PM 01-02-2013
Originally Posted by Unregistered:
Wow! How do you do that???? What areas are your biggest deductions??
My biggest deductions are my time/space % from household items.

But I'm really good at saving and entering receipts. Stuff like cleaning supplies, dishes, pots and pans, cooking utensils, toilet paper, tissues, napkins, etc etc. It all ads up.

My net is about the same as most of the examples above but my gross is less since 2 of my spots are taken up by my 2 kids.
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suehelen 03:17 AM 01-03-2013
Originally Posted by MarinaVanessa:
My biggest deductions are my time/space % from household items.

But I'm really good at saving and entering receipts. Stuff like cleaning supplies, dishes, pots and pans, cooking utensils, toilet paper, tissues, napkins, etc etc. It all ads up.
Same here. I count everything I can.
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itlw8 07:08 AM 01-03-2013
I find that I do not deduct as much as some people. But if you do not spend it that is better than spending and deducting. I am frugal and shop sales. I participate in classes that give you freebies, if there is a grant I apply and put in the work.

Plus we bought out house years ago for not much more than you buy a car for now. LOL

As long as you take everything you are entitled to take you are good. Plus I review the list every year to make sure I do not miss anything.
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LaLa1923 07:27 AM 01-03-2013
Originally Posted by MarinaVanessa:
My biggest deductions are my time/space % from household items.

But I'm really good at saving and entering receipts. Stuff like cleaning supplies, dishes, pots and pans, cooking utensils, toilet paper, tissues, napkins, etc etc. It all ads up.

My net is about the same as most of the examples above but my gross is less since 2 of my spots are taken up by my 2 kids.
How can you count tp and paper towels if your family uses them too? I'm new to this
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Unregistered 08:14 AM 01-03-2013
EVERYTHING you use for daycare can be deducted, whether it is with you T/S % ( for things your family uses too) or 100% daycare use. EVERYTHING! So toilet paper and paper towels would be T/S %

Last year I only made 29,000 and after deductions just a little under $6000.
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kitykids3 12:23 PM 01-03-2013
I count everything too!, but still could not go from 70 down to 20. How in the world? Gross this year will be about 45, down to about 23. Last year it was 38 down to 18. And of course the taxes are still crazy at only 18K a year.
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MarinaVanessa 03:28 PM 01-03-2013
Originally Posted by LaLa1923:
How can you count tp and paper towels if your family uses them too? I'm new to this
You use your Time/Space %.

To get that you keep track of all of the time you have kids in your DC and all of the time that you spend doing DC stuff in your home when there's no DC kids then you divide those hours by the number of hours in the year. This gives you your time%.

Then you figure out how many sq ft in your home is regularly used for daycare business and divide that by the total number of sq ft of your home. This gives you your space %.

Then you take your time% and multiply it by your space% and this gives you your time/space%. (can you tell I have my Tom Copeland Family Child Care Record Keeping Guide out lol).

Your time/space% is the percentage that you can claim from shared items in your home. So if your time/space% is 35% then you can claim 35% of your items that you purchase that you share with both family and daycare like toilet paper, napkins, paper, pots, pans, utencils, cleaning supplies, toys (if shared by your own kids and the DC kids) etc.
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Holiday Park 03:39 PM 01-03-2013
Where can I get this T.C. Record keeping guide ?edited to say I just realized that's what the link above is for . I'll have to get the rbook because I dont have kindle , an i-pad or a nook :-( . I hope to get an i-pad after tax time . Maybr I can buy the one for the i-pad .... But is it readable on an i-phone ?
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TomCopeland 06:28 PM 01-03-2013
Originally Posted by Holiday Park:
Where can I get this T.C. Record keeping guide ?edited to say I just realized that's what the link above is for . I'll have to get the rbook because I dont have kindle , an i-pad or a nook :-( . I hope to get an i-pad after tax time . Maybr I can buy the one for the i-pad .... But is it readable on an i-phone ?
I don't know if my book is readable on an Iphone.
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Unregistered 05:29 PM 01-06-2013
active poster but logged out

I usually have 7-8 FT kids year round.
My gross income is usually around $50-55,000 and after deductions it's around $30,000.

I highly recommend Tom's book! It helped me find SO many more deductions and I learned to document ALL of my time spent doing daycare related activities to raise my time %!
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Malmom 11:00 PM 01-06-2013
Originally Posted by Holiday Park:
Where can I get this T.C. Record keeping guide ?edited to say I just realized that's what the link above is for . I'll have to get the rbook because I dont have kindle , an i-pad or a nook :-( . I hope to get an i-pad after tax time . Maybr I can buy the one for the i-pad .... But is it readable on an i-phone ?
You can get the kindle app for your iPhone and then buy the kindle version of the book.
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Lyss 08:19 PM 01-07-2013
Originally Posted by TomCopeland:
It's now available as an e-book on Kindle, Nook and iPad.
Awesome!!! I have a Kindle! I'm totally gonna pick it up tonight! Thanks so much for all your help and advice!
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