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Well I went to my tax guy today. And I am so angry at this moment. I made 36,000 in income, and had 26,000 in deductions, So I was left with 10,000 that needed to be taxed. Needless to say with filing my joint return with my husband we now owe 11,000 to the IRS! I had my tax guy completely pull my daycare off our taxes and If I didn't run my daycare, we would have gotten back 14,000! It was like putting salt on my wounds. This year I had to upgrade all of my baby equipment. So next year my deductions won't even be as much as it is this year. Im at the point is daycare even worth all of the trouble? When I could work outside of the home, and pay normal taxes, and not even have to worry about buying everything for the daycare. I am so bummed at the moment, I just don't even know what to do. My husband and I have some serious talking to do about weather or not to shut the daycare down.
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Last edited by Michael; 02-09-2013, 07:58 PM. -
I can't believe that's correct. Unless I'm missing something $10,000 in income wouldn't raise your taxes by $25,000.Comment
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Are you sure this tax person is familar with daycare businesses? Our business is much different than other businesses in terms of deductions for home use, etc.Comment
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Is this your first year doing daycare?Comment
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Those numbers sound really REALLY wrong!! $14000 tax refund vs $11k tax bill?! That is just flat out wrong.
He did something wrong. Try going onto Turbo Tax Small business and play around with it...you don't pay if you don't file with them and it is really easy to use.Hee hee! Look, I have a signature!Comment
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And, as a mod, I'm moving this over to the tax forum so Tom Copeland can see it
Hee hee! Look, I have a signature!Comment
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That sounds really wrong!
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Important that you ask Tom directly at the February 12th Webinar that also Covers the New IRS Rule on House Expenses.
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OP that totally ****s
We just had our taxes done and this will be the first time we owe in 26 years of me doing daycare....
We have to pay $8000.
Last year, I made $70,000 and my husband's pension is taxed and it pays my portion of taxes. In the past, we have always broke even or got $ back...not a whole lot, but maybe a $1000. Last year we got $7000 back, because we had put solar on our home and got a big tax credit for that, which helped us out a lot.
I totally sympathize with you.
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That doesn't make too much sense to me..if you only made a profit of $10000 (this is the amount you are paying buisneas taxes on) how can you owe more money ($11,000) than you actually made..this sounds
Wrong to me as well.Comment
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I have been doing taxes for a long time. The IRS doesn't care what you gross. The only thing they look at on a Schedule C is what you net (the $10,000)
There is no scenario out there where your Husband's amount stays the same, and $10,000 makes a $24,000 difference in what you get back/owe.
It just isn't feasible.
Take your stuff to another tax preparer if you don't feel comfortable doing it yourself.Comment
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The only thing I know is that my husband didn't work much this year, and this is my first full year of daycare. I have been going to this guy for 13 years. We spent 3 hours going over everything. The only thing I can even think of is his taxes did not cover my daycare, unless there is more income that is being taxed on my side, I have yet to even pick up my paperwork from yesterday.Comment
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And this really scares me for next year, because I had to revamp a lot of things that I won't have to do next year which means that I will have more taxable income. I have went after every piece of deduction that I can think of besides the deduction for items in my home, because I don't want yay problems when we decide to sellComment
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Is there a possibility that with my husband income and my income that we got put into a higher tax bracket? We do file jointComment
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