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So I started my type B daycare through ODJFS at the end of August..and I am so lost when it comes to doing my taxes. I am not sure how to figure out time and space %, I have read that alot of here. I know I can deduct so much of my utility bills and mortage, but not sure how to figure up the amount of what I can use. Any and all advice would be greatly appreicated !! I had started using MM kids but I guess it was a free trial and has expired and what was on there is lost.
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I was in the same boat, so I'll tell you what I did. I've been doing this since February. Until I found this forum (I think it was in October or Nov), I had no idea that dc taxes were so very different from other businesses. I've been self employed in another business since 1980, so saving receipts is deeply ingrained, thank goodness. If I hadn't found this place, I would have done taxes the same old way, because my CPA didn't even know this stuff.
Here's what I did.
1. Order all of Tom's books. I have Record Keeping, Inventory Keeper, Tax Companion, Calendar Keeper, and I'm ordering the Tax Organizer. It suggests you don't need the Organizer if someone else does your taxes, but Tax lady and I are learning together. Read them and highlight lots of pages.
2. Read Tom's blog. http://www.tomcopelandblog.com/ Go back a year or more, lots of great info.
3. Read this forum--daycare and taxes. Go back a year or two (just remember that some of the rules change from year to year).
4. Either find a tax person who knows how to do dc taxes or make her read the books.
5. Sign up for his webinar this week or have your tax lady sign up. I haven't taken one yet, but I've heard good things.
6. Next year, never, ever throw away a receipt. Circle the things that are deductible and enter them into the Calendar Keeper or MM. I don't use MM-I'm not on the food program and can't afford it. I'm liking the Calendar Keeper--I don't always have my computer handy (Oh for a smart phone!) but I can always find a pencil.
7. Keep your mileage if you use your car for dc related trips.
8. Keep a sign in sheet of the times kids are actually in your house. Keep good records of the time you spend cleaning the rooms used in day care, doing book work, etc. Anything you do in your house that involves day care is counted--as long as kids are not in care. In other words, if the kids are there from 8-5, and you do books for 30 minutes while they nap, you can't count that 30 minutes. But, if you wait until they go home, then do books, you count it as other time. I don't know the time/space formula off the top of my head (you can do a forum search) but it involves the hours you had kids here, the other hours after kids left, then you do some math stuff involving the percentage of your house that you use for care to get your time/space.
Hope this helps. -
Also, take advantage of our Tax Webinar on the 9th:
Tom Copeland, the leading expert on the business of family child care, will present the webinar. To register, go to: http://events.r20.constantcontact.co...&llr=yatrx4cab
The cost is $25 (tax deductible!).
What is a Webinar?
A webinar is a live workshop conducted through the Internet. Participants will receive directions on how to link your computer to the webinar as well as a phone number to call to listen to Tom Copeland speaking. You will see a power point slide presentation on your computer and listen to Tom presenting the workshop.
You will have the chance to ask questions throughout the webinar. If Tom can't get to your question during the webinar he will contact you after the webinar to follow up. You will also receive a copy of the power point presentation and handouts.
How to Register
To register for this important webinar, go to: http://events.r20.constantcontact.co...&llr=yatrx4cab
or contact Tracy Halverson at 801-886-2322 x226; email: thalverson@nafcc-mail.org. The fee for the webinar is $25. The cost is 100% tax deductible!
This webinar is being sponsored by Daycare.com LLC. The webinar is being hosted by the National Association for Family Child Care.
Tom Copeland is a licensed attorney who has written many books on the business of family child care and has presented workshops for hundreds of thousands of family child care providers across the country since 1981. He has represented dozens of child care providers in IRS audits and has won five U.S. Tax Court cases. He is the nation's leading authority on family child care record keeping and taxes.
We had a very successful webinar with Tom Copeland last year and he has been very helpful in out Taxes and Daycare section of the forum. I hope you will take advantage of this opportunity to reduce your taxes and join me on Thursday February 9, 2012.Comment
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time-space%
Here's a description of how to calculate your time-space %:http://www.tomcopelandblog.com/2011/...tage-quiz.htmlComment
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Thanks Tom, I went to the suggested link and figured up my t/s%, but now Im not sure what to do with it
When done our taxes last night on turbo taxes, but we have not filed because we have to mail in due to our son's adoption. So I know I done the % wrong and will have to go back and fix it. My t/s% ended up being 19.63%, so do I deduct that percentage from my utility bills and other things. I wasn't sure if turbo tax has had a place to input t/s%.
Thanks again, and I am glad to say that I ordered the calendar keeper this morning for this year !Comment
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time-space %
Your time-space % will show up on Form 8829, line 7. Turbo Tax will multiply this by your house expenses on this form. You should be using this percentage to apply to other business expenses that are used for both business and personal purposes.Thanks Tom, I went to the suggested link and figured up my t/s%, but now Im not sure what to do with it When done our taxes last night on turbo taxes, but we have not filed because we have to mail in due to our son's adoption. So I know I done the % wrong and will have to go back and fix it. My t/s% ended up being 19.63%, so do I deduct that percentage from my utility bills and other things. I wasn't sure if turbo tax has had a place to input t/s%.
Thanks again, and I am glad to say that I ordered the calendar keeper this morning for this year !
It looks like you determined your time-space % for the entire year. Therefore, apply this percentage to the entire year of your house expenses.Comment
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