Collecting For Tax Time

[dave4him]

If there is already a thread point the way... Since i am still working on getting my permit i was wondering should i start collecting receipts now and keeping them in a file... and when i do how do i organize them when the time comes to pay taxes. Im not the greatest manager organizing such, just trying to learn how

[jojosmommy]

Buy Tom Copelands books. Red Leaf Press Family publishes them. He has a number on business organization and tax prep. Caught over $1000 in mistakes my tax guy made during my first year of daycare.

Also, pay quarterly taxes to fed and state or you will owe ALOT at the end of the yr and possibly some fees. Have your tax prep person give you an estimate of how much for this year and then you will have a better idea after you actually stat earning some income. I think Tom copland says something like 20-30%.

I use Minute menu kids software as do many providers on this forum. All my pmts are electronic and all my deductions are put on Minute Menu Kids. Print off everything at the end of the year. COULDN'T DO IT WITHOUT IT!

[TomCopeland]

Starting Out

If there is already a thread point the way... Since i am still working on getting my permit i was wondering should i start collecting receipts now and keeping them in a file... and when i do how do i organize them when the time comes to pay taxes. Im not the greatest manager organizing such, just trying to learn how

Start saving receipts for all business purchases, even before your business begins. Put receipts for similar expenses together (toys, supplies, etc.). Don't worry too much about the categories you choose. You'll be able to reorganize them at the end of the year.

[Unregistered]

Can expenses from last year count even if the daycare didnt start seeing children till this year

[TomCopeland]

when can you start claiming expenses?

You can start claiming business expenses in the year your business began. Your business begins in the year you were ready to care for children and advertising that you were ready. It doesn't matter if you were licensed or not, or had children or not. So, if you were ready and telling others you were ready in 2011, you can start claiming expenses on your 2011 tax return, even if you had no income. If you weren't ready until 2012, then you can claim your 2011 expenses in 2012.