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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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  #1  
Old 01-04-2018, 02:36 AM
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Default Tax Deductions

Would it be worth it to start a thread listing deductions we can take?
Just curious what you all think? I always feel as if I'm missing something.
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  #2  
Old 01-04-2018, 06:58 AM
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Quote:
Originally Posted by legomom922 View Post
I thought it would be helpful if we all could add something to the "worked when no kids are here" list, because we dont always think of everything that someone else may.

1. Shoveling deck, porch, driveway
2. Salting deck porch driveway
3. Mowing grass, trimming, raking, gardening, pulling weeds, watering lawn & flowers, bushes, trees.
4. Cleaning house,
5.Unloading groceries
6. Making out a grocery list
7.Laundry, washing, drying, folding, putting away
8. Loading dishwasher, emptying dishwasher, putting stuff away
9. Cooking, preparing meals
10.Online research, training, reading daycare.com LOL
11. Painting, repairing, remodeling
12. Cleaning out & organizing garage
13. Cleaning toys, rotating toys, putting away & organizing toys
14. Cleaning out gutters
15.Duct cleaning
16.Painting a deck
17.Cleaning pool, adding chemicals
18.Washing & vaccuming car?????
19.Bookwork, MMK, working on taxes
20.Defrosting freezer, cleaning out refrigerator, cleaning oven
21. Cleaning windows
22. Baby/Child proofing
23. Sealing driveway, sweeping driveway
That ^^was quoted from this thread:

https://www.daycare.com/forum/showthread.php?t=27284


Definitely worth adding more to the list!
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  #3  
Old 01-04-2018, 07:59 AM
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Quote:
Originally Posted by Blackcat31 View Post
That ^^was quoted from this thread:

https://www.daycare.com/forum/showthread.php?t=27284


Definitely worth adding more to the list!
All of this just confuses the heck out of me. I pay someone to do my taxes but I don’t keep track of any of this, although I am aware that some of what is listed can be counted. Tom had mentioned in that thread that some of the things listed on that list are not actually accurate. You can only deduct time spent doing activities you wouldn’t normally do if it weren’t for daycare. So things like shoveling and mowing the lawn wouldn’t necessarily count, just the hours that you go above what you would do if there was no daycare. I am unsure how I would even calculate these things/if there would be much of a difference.

I do a lot of stuff while the kids are here but there are some things I need to start writing down. I do need to keep better track of when I am planning crafts after hours, times I am sanitizing toys on weekends and entering all meal counts and what not. A lot of the grey area stuff is what confuses me.
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Old 01-04-2018, 08:36 AM
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Wait you can claim all these?? My lady told me we can only claim an hour before and an hour after that we are open?!
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Old 01-04-2018, 09:01 AM
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Originally Posted by BrightBeginnings2014 View Post
Wait you can claim all these?? My lady told me we can only claim an hour before and an hour after that we are open?!
You need to visit (and bookmark) this website!

FULL of tax info and business info that is necessary and vital to your business.

http://tomcopelandblog.com/
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  #6  
Old 01-04-2018, 09:21 AM
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Quote:
Originally Posted by storybookending View Post
All of this just confuses the heck out of me. I pay someone to do my taxes but I don’t keep track of any of this, although I am aware that some of what is listed can be counted. Tom had mentioned in that thread that some of the things listed on that list are not actually accurate. You can only deduct time spent doing activities you wouldn’t normally do if it weren’t for daycare. So things like shoveling and mowing the lawn wouldn’t necessarily count, just the hours that you go above what you would do if there was no daycare. I am unsure how I would even calculate these things/if there would be much of a difference.

I do a lot of stuff while the kids are here but there are some things I need to start writing down. I do need to keep better track of when I am planning crafts after hours, times I am sanitizing toys on weekends and entering all meal counts and what not. A lot of the grey area stuff is what confuses me.
I think it all comes down to perception.
Honestly, I wouldn't shovel at all if I didn't have daycare... and I live in one of the snowiest states out there.
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Old 01-04-2018, 10:00 AM
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Originally Posted by storybookending View Post
So things like shoveling and mowing the lawn wouldn’t necessarily count, just the hours that you go above what you would do if there was no daycare. I am unsure how I would even calculate these things/if there would be much of a difference.
"You are entitled to deduct all expenses that are “ordinary and necessary” to your business. Since you must maintain your home (including the outside of your home) to attract and retain clients, and to provide a safe, outdoor place for children to play, most outdoor expenses are at least partly deductible in your business.

These can include:

  • Awnings
  • Cement work on a driveway or walkway around your home
  • Deck
  • Doorbell
  • Fence
  • Flowers
  • Garage door opener
  • Gutters and drain pipes
  • House siding
  • Lawn mowing/maintenance service
  • Lawn sprinkler system
  • Patio
  • Security system
  • Stair/deck railings
  • Storm or screen windows
  • Termite and other pest control
  • Tool shed
  • Yard tools (rake, shovel, wheelbarrow, etc.)"

^^ Taken from http://tomcopelandblog.com/deducting-outdoor-expenses
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Old 01-04-2018, 11:12 AM
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Quote:
Originally Posted by Blackcat31 View Post
"You are entitled to deduct all expenses that are “ordinary and necessary” to your business. Since you must maintain your home (including the outside of your home) to attract and retain clients, and to provide a safe, outdoor place for children to play, most outdoor expenses are at least partly deductible in your business.

These can include:

  • Awnings
  • Cement work on a driveway or walkway around your home
  • Deck
  • Doorbell
  • Fence
  • Flowers
  • Garage door opener
  • Gutters and drain pipes
  • House siding
  • Lawn mowing/maintenance service
  • Lawn sprinkler system
  • Patio
  • Security system
  • Stair/deck railings
  • Storm or screen windows
  • Termite and other pest control
  • Tool shed
  • Yard tools (rake, shovel, wheelbarrow, etc.)"

^^ Taken from http://tomcopelandblog.com/deducting-outdoor-expenses
Thanks! I surely wouldn’t be plowing paths through my back yard if it weren’t for daycare, I’d say that time counts.
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Old 01-04-2018, 12:04 PM
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Quote:
Originally Posted by Blackcat31 View Post
You need to visit (and bookmark) this website!

FULL of tax info and business info that is necessary and vital to your business.

http://tomcopelandblog.com/
So is this the time spent doing these things? I too was told I can only do an hour before and hour after our business hours. Obviously I do way more than that though.
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Old 01-04-2018, 12:09 PM
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We have over 90 Deduction Tags. I decided to take the time to find them all and link them. Our Tag search only will show about 10 results because of its limits. There are hundreds of threads that may help you. Many that Tom Copland shared his knowledge on. Here you go:

DEDUCTIONS
Accident
Adoption
Advertising
Air Conditioning
Animals
Appliances
Bedroom
Birthday Party
Books
Bonuses
Camper
Car
Carpet
Cell Phone
Charity
Cleaning
Cloths
Club Memberships
College Expenses
Coffee
Computer
Donation
Education
Employee
Fence
Food
Formula
Furniture
Garage
Garden
Gifts
Groceries
Gym
Heating
Hoa
Home Improvement
Hours
Household Items
Insurance
Interest
Landscape
Laundry
Lawyer
Limits
How Much
Humidifier
Maintenance
Meals
Medical
Milage
Mortgage
Outings
Parents
Parents Night Out
Party
Payroll
Pest Control
Pets
Phone
Phone Bill
Playground
Pool
Pre-Daycare
Preschool Program
Property Tax
Provider Children
Remodel
Rent
Repairs
Research
Respite Care
Security
Snow Shoveling
Software
Start Up
Storage Unit
Stroller
Subscription
Substitute
Supplies
Tax Preparation
Toys
Trip
Trips
Tuition
Unlicensed
Utilities
Vacuum
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  #11  
Old 01-04-2018, 01:01 PM
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That was nice of you, Michael. Thanks.
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  #12  
Old 01-04-2018, 01:21 PM
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Quote:
Originally Posted by BrightBeginnings2014 View Post
Wait you can claim all these?? My lady told me we can only claim an hour before and an hour after that we are open?!
Absolutely not! First, you can't automatically claim an hour before and an hour after unless you are actually doing business work during that time. Second, you can claim all hours working in your home when children are not present, even if it's on the weekends or evenings. You should be carefully tracking all of these hours for at least 2 months on a calendar and using the average of these 2 months for the rest of the year. The average number of hours providers work after children are gone is about 14 hours a week. See my article:http://tomcopelandblog.com/the-singl...uce-your-taxes
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Old 01-04-2018, 01:23 PM
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Default Deductions

Quote:
Originally Posted by Josiegirl View Post
Would it be worth it to start a thread listing deductions we can take?
Just curious what you all think? I always feel as if I'm missing something.
http://tomcopelandblog.com/whats-ded...-care-business
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Old 01-04-2018, 01:32 PM
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Quote:
Originally Posted by TomCopeland View Post
Absolutely not! First, you can't automatically claim an hour before and an hour after unless you are actually doing business work during that time. Second, you can claim all hours working in your home when children are not present, even if it's on the weekends or evenings. You should be carefully tracking all of these hours for at least 2 months on a calendar and using the average of these 2 months for the rest of the year. The average number of hours providers work after children are gone is about 14 hours a week. See my article:http://tomcopelandblog.com/the-singl...uce-your-taxes
Sorry I should have been clearer. She told me you can't claim any of this. I work all the time as i'm sure we all do. But she's only allowed me to do an hour before and an hour after. I easily do 15 hours without kids in my home a week.
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  #15  
Old 01-05-2018, 09:27 AM
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Quote:
Originally Posted by BrightBeginnings2014 View Post
Sorry I should have been clearer. She told me you can't claim any of this. I work all the time as i'm sure we all do. But she's only allowed me to do an hour before and an hour after. I easily do 15 hours without kids in my home a week.
The IRS Child Care Provider Audit Technique Guide says: "Hours spent cooking, cleaning, and preparing activities for the business of child care could be included in the calculation of the numerator of the time percentage if the tests for deduction under IRC Section 162 (ordinary and necessary expenses) are otherwise met under the facts of
the particular case. " See: https://www.irs.gov/pub/irs-utl/child_care_provider.pdf

This is an important issue that will make a big difference on your taxes. There are other IRS authorities that support claiming all the hours you are working. If your tax person won't allow you to claim these hours, find another tax preparer. Call me at 651-280-5991 for further help.
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