Tax Question

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  • JJPlaycare
    Daycare.com Member
    • Apr 2010
    • 292

    Tax Question

    Okay maybe I have lost my mind, but I am not understanding this entire time/space percentage thing and writing things off thing????? I have all of my reciepts of everything I bought, they aren't all sorted yet , but probably up until about July they are sorted out by the month! I hire a tax lady to do my taxes and I pay her to do this! I usually sort all of my reciepts out by the month. I order a Calendar Keeper from Redleaf press and in there, there is a spot for everything I feel, I love it! I take each reciept for each month and there is a spot to write each thing you bought and how much you spent on each item, I fill this all out! All of my childrens hours and payments are kept in here as well along with all my meal counts! I do keep all of my grocery reciepts, but my tax lady and I have agreed to just use the standard meal allowance rates, which are also listed in this book and I just need to write in the total meals and it calculate it out! There is also a section in there for all of my bills, electric, gas, cable, phone, mortgage etc and I write down each month our payments! Everything is kept in the book, I love it and it helps me to stay organized! I just feel like I am doing something wrong with my reciepts however! I have NEVER done a time space percentage equation, I am sure my tax lady does, but how do you possibly know if she is doing it right and I am paying her to get me the most back for my money! I only file taxes 1 time per year and I pay her usually around $200.00! She always comments that I am the most organized daycare she does and that it is so easy for her to do because I have such good record keeping techniques, but I am just not sure I am doing this right! How do you know your tax lady is doing things right??? I am sure she is I love her, I just want to make sure I am getting the most for my money!! For some reason I am freaking out about taxes this year, I feel like I made more money this year, but didn't buy anything big to use as a write off!! Also how do you figure this all out before the end of the year, the entire time/space percentage thing without knowing the exact figures? I mean I can guess that everyone will stay here for the end of the year and how do you know that a family won't miss a day or two here and there - I give out 5 free days, so for me to figure this all out before Dec 31 is pretty impossible!! I don't know I think I have prego mind lately, I am a stress ball lately!!
  • legomom922
    Advanced Daycare.com Member
    • Jul 2010
    • 1020

    #2
    Are you using MMK at all? That is the easiest and the best way as it calculates EVERYTHING for you! I couldnt live without it!

    Comment

    • JJPlaycare
      Daycare.com Member
      • Apr 2010
      • 292

      #3
      Is MMK (Minute Menu Kids) is that an online computer program?? Do you have to add things into it daily, what if you get behind on your stuff? I am a slacker and play catch up, just wondering how that program works....

      Comment

      • TomCopeland
        Business Author/Trainer
        • Jun 2010
        • 3062

        #4
        Time-Space %

        You need to ask your tax preparer if she is applying your Time-Space % to your shared (business and personal) expenses. She should be asking you each year how many hours your worked in your home and how many of the rooms in your home you used on a regular basis. You can look on IRS Form 8829 Part I to see where these numbers should appear. Line 7 is your Time-Space %. If your tax preparer didn't fill out this form then you have a problem. If this has happened, call me at 651-280-5991. I'm in Mexico until November 11th, so call me after that date.

        Your job throughout the year is to save your receipts and keep track of the hours that you are working. It's at the end of the year that you and/or your tax preparer will calculate your Time-Space %.

        I'm happy to explain this in more detail if you want to call me.
        http://www.tomcopelandblog.com

        Comment

        • JJPlaycare
          Daycare.com Member
          • Apr 2010
          • 292

          #5
          Okay I do have this form and it is all filled out it says 33.90% does that seem like a reasonable percentage?

          Comment

          • JJPlaycare
            Daycare.com Member
            • Apr 2010
            • 292

            #6
            That is my Tax forms from 2009 with that percentage on it!

            Comment

            • TomCopeland
              Business Author/Trainer
              • Jun 2010
              • 3062

              #7
              Time-Space %

              If you cared for children 11 hours a day, 5 days a week for 52 weeks this represents 33% time, so your number is very reasonable.
              http://www.tomcopelandblog.com

              Comment

              • legomom922
                Advanced Daycare.com Member
                • Jul 2010
                • 1020

                #8
                Hi Tom,

                So it doesnt really matter how many children you have enrolled in your daycare for the time space % correct? Meaning, I could have 1 child enrolled 11 hrs a day 5 days a week, and my % would be the same as someone who had 5 kids enrolled 11 hrs aday 5 days week right?

                Comment

                • juliebug
                  Daycare.com Member
                  • Jul 2010
                  • 354

                  #9
                  Originally posted by legomom922
                  Hi Tom,

                  So it doesnt really matter how many children you have enrolled in your daycare for the time space % correct? Meaning, I could have 1 child enrolled 11 hrs a day 5 days a week, and my % would be the same as someone who had 5 kids enrolled 11 hrs aday 5 days week right?
                  yep they both equal the same about 33%

                  you count when the first child arrives and the last child leaves and time you spent working for your business cleaning paper work, curriculum, ect..

                  Comment

                  • legomom922
                    Advanced Daycare.com Member
                    • Jul 2010
                    • 1020

                    #10
                    I have the same paperwork for one as I would have for 3, and same with cleaning..it doesnt matter how many kids you have, the vaccum doesnt know the difference! LOL

                    Comment

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