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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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Old 04-25-2017, 09:46 AM
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Default Stating My Income

Im filling out a form to try and get some medical expenses reduced. When it asks for my income, do i use the amount i make after business expenses but before taxes or before business expenses and taxes.
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Old 04-25-2017, 10:12 AM
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If they're asking for gross income use your income after expenses and self-employment taxes but before your personal income taxes.

If they're asking for net income use income after expenses and all taxes.

At least that's what I did under the same circumstances.
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Old 04-25-2017, 12:37 PM
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Quote:
Originally Posted by MyAngels View Post
If they're asking for gross income use your income after expenses and self-employment taxes but before your personal income taxes.

If they're asking for net income use income after expenses and all taxes.

At least that's what I did under the same circumstances.
Thanks. They want gross. I wasn't sure if i had to include business expenses or not.
How do i find out how many taxes are self employment and personal?
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Old 04-25-2017, 01:28 PM
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Personal gross income for most purposes for us is line 12 on 1040 (Business Income or (loss). Self-employment tax is on line 57 under "Other Taxes." I always figure half of self-employment tax as an expense because if we were employed by someone else we wouldn't have to pay it. Your personal income tax is based on your income. The percentages can be found here: http://www.bankrate.com/finance/taxes/tax-brackets.aspx

If found this way of figuring it to be accurate enough for this purpose anyway
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Old 04-25-2017, 02:56 PM
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Default Income

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Originally Posted by jenboo View Post
Thanks. They want gross. I wasn't sure if i had to include business expenses or not.
How do i find out how many taxes are self employment and personal?
I would challenge them on the issue of using your gross income instead of your net income (profit). You want to see in writing that self employed people must use their gross income. They may not be used to dealing with self employed people.
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Old 04-26-2017, 12:07 PM
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When I worked in the mortgage industry, we would use the net income as the persons income.
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