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Advice on tax time

Posted by on Dec. 10, 2014 at 3:39 PM
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I have been doing daycare for a lot of years and always seemed I was claiming everyhting I need and should and can be claiming. Last year we were hit hard at tax time, first time EVER we owed $4500. One hit was our daughter is out married now, then we only had our son who was 16. I'm very worried about this year since our son is now 17. I've been reading about all the deductions and some how I need to learn more of what I can to claim. 

Last year I grossed $48,000. after deductions my AGI was $30000. I feel like that's a lot but I keep hearing there are thousands and so there must be something I'm not thinking about. We do have a tax consultant and she just tells me to spend more.

So something I just heard which why I never thought of this is the laundry loads for daycare. Anything else??? Please help, any ideas maybe that I'm just missing.


One thing I'm also confused about that I think I've done wrong is say I buy light bulbs for the kitchen, I've always just wrote them off but I read that you're suppose to figure time percentage? Now I buy bulbs more than once per year so I will claim fully once but not claim them another???  thanks any help would be greatly appreciated

by on Dec. 10, 2014 at 3:39 PM
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abrown15
by on Dec. 11, 2014 at 3:09 PM

I might not be reading this right, but it sounds like you're asking what you can claim? I just started with this new program called Minute Menu Kids (free 30 day trial too) and it has a list of different expenses. I'm using it mostly to keep track of my expenses and deductions. It will also calculate your time percentage for you. Basically anything you use in your home for daycare can be deducted, or a percentage of it can be deducted.

JSCC
by on Dec. 11, 2014 at 10:15 PM

oh, where to start .....  Tom Copeland is an excellent source of help in this area.  He has books, a blog, etc.  I will try to see if I can give you some links to some info from him.

after deductions, my adjusted gross income is usually about HALF of what my income brought in was

yes, you are supposed to deduct a percentage of things such as light bulbs.  You figure up the percentage you'll be able to deduct based on how many hours you use your home for business and how much of your home is used for business.  (simple example: if I used 100% of my home for business 50% of the time I could deduct 50% of all lightbulbs, trashbags, dishsoap, etc, etc)

JSCC
by on Dec. 11, 2014 at 10:18 PM

okay, here's a link to a list of some deductions.  You can also click on the index tab at the top of the page to find lots of topics that might be helpful to you.

http://www.tomcopelandblog.com/2012/09/whats-deductible-in-a-family-child-care-business.html

JSCC
by on Dec. 11, 2014 at 10:20 PM

here is how to figure out the perecentage of your household things you can deduct

http://www.tomcopelandblog.com/2014/10/how-to-calculate-your-time-space-percentage-before-the-year-is-over.html

JSCC
by on Dec. 11, 2014 at 10:21 PM
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