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Daycare and Taxes>Filing Question
Unregistered 01:34 PM 01-11-2011
I am a member but for this question I wish to remain annoymous.
My hubby is a compulsive gambler and his winnings exceed his income so we end up paying in at tax time. My 1st year doing chiildcare we got good amount back, but in the past 2yrs we've had t pay in. He claims it's because of my childcare business, not his gambling. Last year, our tax preparer said if he didn't have his gambling winnings would have got money back. He doesn't pay any of our bills or for things for our kids. He ususally gives about $60 every 2 weeks for groceries(this is for a family of 4) He was giving a $100 but apparently it's cutting into his gambling. Now, I don't do childcare in our living quarters. It's in a different apt number. Hubby owns the house and it's divided into 3 apts. For the childcare area, I pay the electric, as it has it's own meter. I do not pay the heating oil as my MIL pays that bill. (She lives in the 3rd apt) Can I file married, but filing seprately and could I claim our kids? Hubbys says I can file seperate but I can't claim the kids because I am not head of household. I provide for everything the kids need. He pays for nothing, not even for b-days or Christmas.
What does head of household mean?
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Michael 03:01 PM 01-11-2011
A tax filing status that can be used by a married or unmarried person who maintains a household for a dependent (or nondependent relative) and provides more than half of the dependent's financial support.
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TomCopeland 06:36 PM 01-12-2011
Since you are married you can only file taxes as either married filing jointly or married filing separately. You can't file as head of household. Only single parents can file as head of household. So, if you choose to file as married filing separately then it's up to you and your husband to agree on who will claim the children. You are certainly entitled to, contrary to what your husband is telling you.

I'm concerned that you aren't being treated fairly by your husband with regards to your money. I would strongly recommend that you seek out a tax preparer to advise you about what your options are to get the best tax breaks. Check out our tax preparer directory at www.nafcc.org (click on Business Center).
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Michael 09:07 PM 01-12-2011
Originally Posted by TomCopeland:
Since you are married you can only file taxes as either married filing jointly or married filing separately. You can't file as head of household. Only single parents can file as head of household. So, if you choose to file as married filing separately then it's up to you and your husband to agree on who will claim the children. You are certainly entitled to, contrary to what your husband is telling you.

I'm concerned that you aren't being treated fairly by your husband with regards to your money. I would strongly recommend that you seek out a tax preparer to advise you about what your options are to get the best tax breaks. Check out our tax preparer directory at www.nafcc.org (click on Business Center).
Looks like they changed the address from .org to .net
http://nafcc.net/
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TomCopeland 11:19 AM 01-13-2011
The National Association for Family Child Care (NAFCC) website has been completely redesigned. Check it out at www.nafcc.net
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Unregistered 03:27 PM 01-13-2011
Thank you. My hubby told me before that since he makes more money than me, I could not claim the kids. I will definetely check into this more. Thanks, again.
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Abigail 06:15 PM 01-13-2011
I sure hope that your hubby and you are doing okay because Gambling issues may lead to divorce if you're not happy with it. It doesn't matter who makes more, you're married and you share everything including money and tasks of caring for your children.
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Unregistered 04:01 PM 01-16-2011
Abigail,

We've been married since 1996 and had our first child in 2004. We agreed that I would stay home until our baby was 2 then go back to work. Well, 2 months shy of that I got pregnant again. When our youngest was 1, I started doing childcare so, #1, I could still stay home with the kids and #2, earn some money. Well, he's still mad because for 3 yrs, he was the sole provider for his family. He always played lottery tickets and went to the race track, but for the most part paid the bills on time. But once slot machines became legal a few yrs ago, it went downhill. All of his pay and his winnings go right back into the slots.
When he is home, he's either sleeping (from staying out all night) watching tv or just plain ignores me and the kids even when they are asking him to play or read to them.
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Sharon.Riley 04:27 PM 01-16-2011
Tom,

I'm just wondering if he's claiming losses on Schedule A against the winnings. It's my experience that many people can reduce "winnings" to -0-(can't go beyond -0-) this way. Even Doyle Brunson has losses sometimes.

Sharon Riley
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jen 05:57 PM 01-16-2011
Originally Posted by Unregistered:
Abigail,

We've been married since 1996 and had our first child in 2004. We agreed that I would stay home until our baby was 2 then go back to work. Well, 2 months shy of that I got pregnant again. When our youngest was 1, I started doing childcare so, #1, I could still stay home with the kids and #2, earn some money. Well, he's still mad because for 3 yrs, he was the sole provider for his family. He always played lottery tickets and went to the race track, but for the most part paid the bills on time. But once slot machines became legal a few yrs ago, it went downhill. All of his pay and his winnings go right back into the slots.
When he is home, he's either sleeping (from staying out all night) watching tv or just plain ignores me and the kids even when they are asking him to play or read to them.
I am really sorry that you are having such a difficult time. I don't know if you husband is at all willing to see a therapist, but it sounds as though he needs help with a gambling addiction. ALANON is very helpful to spouses of addicted individuals (not just alcoholics) and you may find some support there.

Even if your husband is unwilling to seek help, please don't let that stop you from seeking help for yourself; it sounds as though you are under a great deal of stress. There are many mental health agencies that work on a sliding scale if your insurance doesn't cover it. If you need some resources to get you started, please send me an email with your general location; I may be able to send you some information on help in your area.
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TomCopeland 09:54 AM 01-17-2011
Originally Posted by Sharon.Riley:
Tom,

I'm just wondering if he's claiming losses on Schedule A against the winnings. It's my experience that many people can reduce "winnings" to -0-(can't go beyond -0-) this way. Even Doyle Brunson has losses sometimes.

Sharon Riley
Yes, gambling losses can be claimed on Schedule A. Good to see you here!
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Sharon.Riley 10:32 AM 01-17-2011
Originally Posted by TomCopeland:
Yes, gambling losses can be claimed on Schedule A. Good to see you here!
I found you by accident and have many questions. Hope you don't mind if I stay.
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TomCopeland 10:41 AM 01-17-2011
Of course you can stay. It's not my place to say otherwise. Everyone is welcome.
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jen 05:05 PM 01-17-2011
Originally Posted by Sharon.Riley:
I found you by accident and have many questions. Hope you don't mind if I stay.
Welcome! Post away!
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Unregistered 10:30 AM 03-14-2011
Quick question: The electic that is for my childcare, is in his name, however, I pay it. Can I write this off as an expense if I have proof that I pay it?
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TomCopeland 10:57 AM 03-14-2011
Since you are married you are always entitled to claim utilities and other house expenses even if the bills are in his name.
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