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Daycare and Taxes>How Much Do You Keep Set Aside Each Week/Month for Taxes?
emosks 08:53 AM 02-16-2010
for taxes? Do you do a percentage? Or set amount?
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tymaboy 09:09 AM 02-16-2010
Keep all your DC related receipts. I do not set a certian amount aside, each yr I say I will but have not. We have been able to get a small refund each year so far.
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momma2girls 09:35 AM 02-16-2010
If you keep receipts of everything you purchase all yr. - I always get money back as well. I guess it really depends on your spouse and what he has taken out as well though.
Good Luck!!!!
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emosks 10:28 AM 02-16-2010
We do keep all receipts for food and supplies but I'm sure it's not going to be enough...or at least it wasn't last year!!
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originalkat 10:53 AM 02-16-2010
I always get a refund. But if you find that you owe at the end of the year, I would put away between 15 and 20%.
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booroo 10:55 AM 02-16-2010
Social security is .062% so if you make $1800.00 a month take that xs .062 that would be 111.60; medicare is .0145 again what you make xs the .0145. Then find out what tax bracket you are is, if 20% tax bracket then take your total earnings, so if you make a steady income of $1800 every month, that comes to $21,600.00 take that xs 20% that would come out to be $4320.00 to pay into taxes. That is then remember state taxes as well, what I would do is pay in about $1500 and then rest send to federal.
You account should be able to tell you how much to pay in.

Good luck.
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actaktmdt 12:08 PM 02-16-2010
My plan is save half of what ever I make will be set aside into savings, just to cover myself until I figure it out and get some sort of baseline set for the next year.
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AmandasFCC 01:22 PM 02-16-2010
Yeah my accountant said to put away 20% of income AFTER deductions. I was spending more than I was making for my first 8 months though so I don't have a penny put away Sucks when it takes a while to fill spaces!!! But hopefully that'll mean a return in April!
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actaktmdt 01:37 PM 02-18-2010
just a quick thought, you mentioned you are all ready full, based on that financial information can you could give your accountant that number and then do an estimate of how much in deducations to give you a better ball park to set aside......

also on a side note do you know what the difference is between tier one and 2 in the food program?
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JeepGirl6 11:39 AM 01-05-2011
Originally Posted by tymaboy:
Keep all your DC related receipts. I do not set a certian amount aside, each yr I say I will but have not. We have been able to get a small refund each year so far.
This is my first year doing my daycare taxes..I am just curious how much you made to get money back, if you don't mind me asking. It would be just be filing because my fiance and I are not married yet, yet own a house together...I have added up what I have made this year and it is around $14,000 without any deductions.. How much do you pay quarterly? I know with deductions I will be in the poverty level so I was told I won't have to pay anything, sorry if it's a stupid question, it's my first time doing small business taxes...
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Little People 12:03 PM 01-05-2011
Originally Posted by actaktmdt:
just a quick thought, you mentioned you are all ready full, based on that financial information can you could give your accountant that number and then do an estimate of how much in deducations to give you a better ball park to set aside......

also on a side note do you know what the difference is between tier one and 2 in the food program?

I am in TN an was told this:

T-1 Breakfast $1.19 Snack .66 Lunch $2.21
T-2 Breakfast .44 Snack .18 Lunch $1.33

And they told me if 50% of the kids in my area school are on low income (food at school) then I would be in T-1 and if if was at 51% I would be T-2. So I called a sponser and she said i had to come to the office for a 6 hour class. I do not have anyone to watch my daycare children. So I decided not to enroll. HTH
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cillybean83 12:37 PM 01-05-2011
this is my first year, so I didn't make much $$, I opened in April, didn't fill a single spot til may, and wasn't full until July, then I lost a kid in August. I lost money in 2010 due to all the start up costs, so I'll be getting a refund this year.

I was told that filing schedule C type stuff makes you more prone to audit, so make sure you document everything! I'm kinda freaked out but I think I documented everything correctly!
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TomCopeland 01:51 PM 01-05-2011
Originally Posted by booroo:
Social security is .062% so if you make $1800.00 a month take that xs .062 that would be 111.60; medicare is .0145 again what you make xs the .0145. Then find out what tax bracket you are is, if 20% tax bracket then take your total earnings, so if you make a steady income of $1800 every month, that comes to $21,600.00 take that xs 20% that would come out to be $4320.00 to pay into taxes. That is then remember state taxes as well, what I would do is pay in about $1500 and then rest send to federal.
You account should be able to tell you how much to pay in.

Good luck.
This is a good guideline to follow. Conservatively, you will owe about 20% of your gross income in federal taxes (social security and income tax).
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TomCopeland 01:55 PM 01-05-2011
Originally Posted by JeepGirl6:
This is my first year doing my daycare taxes..I am just curious how much you made to get money back, if you don't mind me asking. It would be just be filing because my fiance and I are not married yet, yet own a house together...I have added up what I have made this year and it is around $14,000 without any deductions.. How much do you pay quarterly? I know with deductions I will be in the poverty level so I was told I won't have to pay anything, sorry if it's a stupid question, it's my first time doing small business taxes...
i wrote a recent blog post on this: http://tinyurl.com/2as69og
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TomCopeland 01:56 PM 01-05-2011
Originally Posted by Little People:
I am in TN an was told this:

T-1 Breakfast $1.19 Snack .66 Lunch $2.21
T-2 Breakfast .44 Snack .18 Lunch $1.33

And they told me if 50% of the kids in my area school are on low income (food at school) then I would be in T-1 and if if was at 51% I would be T-2. So I called a sponser and she said i had to come to the office for a 6 hour class. I do not have anyone to watch my daycare children. So I decided not to enroll. HTH
You are making a mistake not to enroll in the Food Program. For every full time child you care for you can expect to get either $500 or $1000 per child per year from the Food Program. That's worth spending 6 hours at a training and paying for someone to watch the children.
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grandmom 01:58 PM 01-05-2011
Tom,

I'm surely going to owe a penalty. Is it a stiff one?
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TomCopeland 02:00 PM 01-05-2011
It's about 10% of the tax you should have paid. At this point it doesn't make sense to worry about it since there's nothing you can do. File your taxes and pay what you owe. If there is a penalty for not paying in earlier the IRS will calculate this and send you a bill.
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JeepGirl6 02:09 PM 01-05-2011
Can I get on the Food Program if I am not a licensed provider?
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TomCopeland 02:12 PM 01-05-2011
Depends on your state. Most states only allow licensed providers on the Food Program but an increasing number are allowing license-exempt providers to participate. Contact a local Food Program sponsor for the answer.
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Tags:accountant, deductions, taxes
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