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Daycare and Taxes>How Much For An Accountant?
blessed mom 09:15 PM 12-06-2011
This is our first year as a provider. In the past we have used Turbo Tax but my hubby is thinking we should hire an accountant this first year. We found one that specializes in day care providers. She wants three hundred...and is usually more for the first year if you are itemizing your depreciated household items. Is this reasonable? Seems like a lot to me, but then again we are used to doing our own and I have no idea how the taxes go and I want it done right. I live in Northern California.
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melskids 03:36 AM 12-07-2011
We pay around $650, but my hubby and I both have businesses, besides his full time job.

And she helps us throughout the year, any time we call her, so it's worth it to me. ( My hubby has to fill out sales tax stuff every quarter, and he can never figure it out on his own...so she does it for him...lol)

I think it's well worth the cost to have someone who understands the ins and outs of daycare. I don't want any reason to have any red flags go up, kwim?
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Cat Herder 05:22 AM 12-07-2011
I pay $100-$150.

I used Minute Menu this year so she said it will most likely be MUCH less now that everything is simplified and organized so well.
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GretasLittleFriends 06:56 AM 12-07-2011
My husband owns a small trucking company, and I, my daycare. Our accountant does ours for $250 or $300. He has been going to her for years. (We've only been married 3). I was wary at first because I had always done my own taxes, but after I saw DH's paperwork, I was glad I didn't have to deal with that.

OP, said you found someone who specializes in daycare taxes. I would just reiterate to stay away from the places like HRBlock... They specialize in 1040EZs, not so good with capital gains/loss forms...
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morgan24 08:19 AM 12-07-2011
Mine is around $250.00 that is for 2 businesses and my hubby full time job. I have everything for the business all total he just has to enter them.

I agree find someone who specializes in daycare, what you pay will save you in taxes.
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Twinmom 10:07 AM 12-07-2011
I use Robert Groth Accounting, I've been happy with him. He does returns from providers around the U.S. Price depends on what forms you file, so call him and ask. His website is http://www.daycaretaxexperts.com

Best of luck to you, tax time is coming around the corner!!

Twin Mom
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caring4kidsinSD 01:12 PM 12-07-2011
I think I"m getting ripped off - I used to pay $500 - last year I switched and it was $300 and I do most of the work. Even with that being said, she knows the rules for daycare and I like knowing someone has my back if I'd every get audited. Provides me a peace of mind. I probably could handle it myself after 6 years of doing daycare but rules change and I'd miss some kind of big deduction!
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TomCopeland 02:30 PM 12-07-2011
It isn't wise to judge a tax professional solely by how much the person charges. Each person't tax return is different. It's better to pay someone more who is doing an excellent job than pay someone less who is doing a so-so job. It's also appropriate to try to negotiate a lower rate. Ask if you can organize your records in a certain way that would help reduce the time the preparer has to spend. Ask if using Minute Menu should deserve a lower rate.
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blessed mom 08:13 PM 12-07-2011
Originally Posted by TomCopeland:
It isn't wise to judge a tax professional solely by how much the person charges. Each person't tax return is different. It's better to pay someone more who is doing an excellent job than pay someone less who is doing a so-so job. It's also appropriate to try to negotiate a lower rate. Ask if you can organize your records in a certain way that would help reduce the time the preparer has to spend. Ask if using Minute Menu should deserve a lower rate.
The accountant did say that she would ask us to do a lot of the "work" for that price. I don't know...haven't ever done this before. I do have Minute Menu for meals. Hmm...seems I should try her and see what happens. ACK
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melskids 05:58 AM 12-08-2011
Originally Posted by TomCopeland:
It isn't wise to judge a tax professional solely by how much the person charges. Each person't tax return is different. It's better to pay someone more who is doing an excellent job than pay someone less who is doing a so-so job. It's also appropriate to try to negotiate a lower rate. Ask if you can organize your records in a certain way that would help reduce the time the preparer has to spend. Ask if using Minute Menu should deserve a lower rate.
Exactly.

I have the highest quote here so far, but she is worth every penny!
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Unregistered 09:42 AM 12-13-2011
We paid over 300 the first year I did daycare and got audited b/c the tax "professional" did a terrible job. We had to pay a ton to have it re-done by someone else.

We pay around 300-400 for the guy we have now. Obviously cost doesn't prove intelligence or capability.
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beachgrl 11:43 PM 01-22-2012
I think it will cost us about $150 to do mine and the husbands and with what she has already done and with what she has helped me with and taken the time to explain...i think it will be worth it and beneficial to get someone else to do it, nevermind the time and research i would need to put in to figure it all out, at least i can be more confident thet are being done right bupy a professional.
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wdmmom 12:07 PM 01-23-2012
I pay right about $325 a year.

This is just for the accountant to do my taxes.

I go through all of my own receipts and itemize them using a spreadsheet he provides. For him to do it would cost me double if not more.
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Sunchimes 02:37 PM 01-23-2012
In the past, she (a CPA) has charged us about $80 for doing our business taxes (non-child care). I can call her during the year if I need to ask a question. I suspect the child care taxes will be more (this is our first year), but that's fine. I think she uses some tax software (Turbo Tax maybe?) and I read that it isn't good for day care, so it will mean more work for her. I bought Tom's Tax Organizer and the Record Keeping Guide to share with her. I think that between the 2 of us, we will do just fine. The only reason I haven't tried it myself in the past is depreciation. I just can't seem to wrap my brain around depreciation.
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mac60 07:08 AM 01-26-2012
Last year I paid $220. This included my daycare taxes, hubbys (which he had like 4 different w2's since he was working for temp agencies), and my two college kids. Personally, I think that is pretty darn good money considering it took about 1 1/2 hours and once they enter the information in it generates all the city, county, state, federal taxes.

My accountant told me the records I keep are the best that she has ever seen from a provider, and that I go above what it needed. I have all totals of everything ready to go, she just has to enter the numbers.
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