How Much To Put Aside For Taxes??

[jenboo]

If you are married and your spouse works full time, how much do you put aside for taxes??

Im starting to stress because i am having a hard time putting anything aside. Things keep coming up...have to pay for training to get a sub because I am having some health issues, something big breaks, im down a child right now...

ugh it just seems impossible right now to get that money in the bank!

[midaycare]

I'm wondering about this too. I just opened up this year, and I have no idea how this will work. I am saving 20%.

[Childminder]

~~~~35%~~~~

[jenboo]

~~~~35%~~~~

Holy crap!!
35% even with a working spouse?

[Childminder]

I have a working spouse but he is only able to work part time. What we do is increase his withholdings to take an extra $50 per week and he files his W-4 as 0 to make it easier on us rather than set $$ aside and file quarterly. In this business so much depends on deductions and how much you are investing in your business each year.

I have been in this business so long that I have very little to deduct except the day to day operation costs. I never buy anything new and need very little in the way of toys and supplies. You will have more to deduct because you have so much more in start up cost, etc…

I also suggest you find a tax professional that specializes in day care because of the idiosyncrasies of this business. You can find links to ones in your state on the NAFCC site and probably through Tom Copeland's blog.

I recommend that you go to Tom Copeland's Blog and read all you can. He will answer your questions and more. He has some great books on the business of childcare and you can get them through NAFCC (which membership to is deductible 100%), he also has a partnership through Minute Menu for $15 a year that makes him personally available to you for any daycare business questions you could possibly think of. He is also a consultant on this forum so you could ask your questions here and he will get back to you in a very reasonable time, also you could perform a search here and probably find your answer.

Tom should pay me for advertising for him, I recommend him to every provider on every forum or daycare organization I am a part of.

[TomCopeland]

estimated taxes

If you are married and your spouse works full time, how much do you put aside for taxes??

Im starting to stress because i am having a hard time putting anything aside. Things keep coming up...have to pay for training to get a sub because I am having some health issues, something big breaks, im down a child right now...

ugh it just seems impossible right now to get that money in the bank!

How much you should set aside depends on your family circumstances. You will owe 15% Social Security tax and federal income tax on your business profit. The federal income tax will be about 15%-25% depending on how high your income is.

To be safe, set aside 20% of your income (before expenses). See my article on this: http://www.tomcopelandblog.com/2014/...-business.html

[TomCopeland]

estimated taxes

I have a working spouse but he is only able to work part time. What we do is increase his withholdings to take an extra $50 per week and he files his W-4 as 0 to make it easier on us rather than set $$ aside and file quarterly. In this business so much depends on deductions and how much you are investing in your business each year.

I have been in this business so long that I have very little to deduct except the day to day operation costs. I never buy anything new and need very little in the way of toys and supplies. You will have more to deduct because you have so much more in start up cost, etc…

I also suggest you find a tax professional that specializes in day care because of the idiosyncrasies of this business. You can find links to ones in your state on the NAFCC site and probably through Tom Copeland's blog.

I recommend that you go to Tom Copeland's Blog and read all you can. He will answer your questions and more. He has some great books on the business of childcare and you can get them through NAFCC (which membership to is deductible 100%), he also has a partnership through Minute Menu for $15 a year that makes him personally available to you for any daycare business questions you could possibly think of. He is also a consultant on this forum so you could ask your questions here and he will get back to you in a very reasonable time, also you could perform a search here and probably find your answer.

Tom should pay me for advertising for him, I recommend him to every provider on every forum or daycare organization I am a part of.

The check is in the mail...

[jenboo]

I have a working spouse but he is only able to work part time. What we do is increase his withholdings to take an extra $50 per week and he files his W-4 as 0 to make it easier on us rather than set $$ aside and file quarterly. In this business so much depends on deductions and how much you are investing in your business each year.

I have been in this business so long that I have very little to deduct except the day to day operation costs. I never buy anything new and need very little in the way of toys and supplies. You will have more to deduct because you have so much more in start up cost, etc…

I also suggest you find a tax professional that specializes in day care because of the idiosyncrasies of this business. You can find links to ones in your state on the NAFCC site and probably through Tom Copeland's blog.

I recommend that you go to Tom Copeland's Blog and read all you can. He will answer your questions and more. He has some great books on the business of childcare and you can get them through NAFCC (which membership to is deductible 100%), he also has a partnership through Minute Menu for $15 a year that makes him personally available to you for any daycare business questions you could possibly think of. He is also a consultant on this forum so you could ask your questions here and he will get back to you in a very reasonable time, also you could perform a search here and probably find your answer.

Tom should pay me for advertising for him, I recommend him to every provider on every forum or daycare organization I am a part of.

Great thanks. I just opened in sept so I still have plenty of things I purchase. I do have a great tax guy. I have checked out the blog before but didn't feel like searching it last night haha.
Thank you for your advice.

[rebekki78]

I stated this in another thread, but this all depends on your family circumstances, how much profit you make, and how many deductions you claim.

My tax preparer said I shouldn't need to set any money aside since we receive so much back on our refund. My tax preparer stated it this way: Because we have so many children to claim and we get so much back, any amount that I would have needed to pay in will just come off of that amount that we receive back, so I should never have to worry about paying in until our children grow up. We are the working poor though.

I know other providers who are licensed for a group home and have no children who pay quarterly taxes since they would owe so much at the end of the year. So it totally depends on your situation.

[melilley]

I just opened last year and I didn't put any money aside, but between what dh made and had taken out, it covered me and we even got a refund. I'm not sure if my deductions from just starting out made a difference, but we asked our tax preparer if we should save any this coming year and she said we can, but should be fine.

So like pp's said, it depends on your family circumstances.

[Blackcat31]

I recommend him to every provider on every forum or daycare organization I am a part of.

Me too! I even got booted off another forum for saying "Well, Tom Copeland says..." too many times. ::

Apparently the forum owner had a bad experience with a tax audit or with some advice she had gotten... I don't know all the details just that I was reprimanded for using his advice/suggestions/blogs in my posts to others.

Oh well...her loss! I still tell everyone I know about his books/advice/blogs etc.

[jenboo]

I just cant seem to get anything set aside.
Im going to have my dh withhold enough for the two of us.


cant wait to have kids for tax purposes

[AngiesCareXYZ]

How much you should set aside depends on your family circumstances. You will owe 15% Social Security tax and federal income tax on your business profit. The federal income tax will be about 15%-25% depending on how high your income is.

To be safe, set aside 20% of your income (before expenses). See my article on this: http://www.tomcopelandblog.com/2014/...-business.html

I really need some help. I don't know were to save even the 15% of my gross wages each quarter. I barely make it month to month.
Last year my Gross wages were just over 78,000 and my total expenses were over 63,000. 15% of 78,000 would put me in the negative for the year.
I use QBO and I am trying to set it up so that I can make these quarterly payments. I just don't see how the math works out. Do you work with QBO?

[TomCopeland]

estimated taxes

I really need some help. I don't know were to save even the 15% of my gross wages each quarter. I barely make it month to month.
Last year my Gross wages were just over 78,000 and my total expenses were over 63,000. 15% of 78,000 would put me in the negative for the year.
I use QBO and I am trying to set it up so that I can make these quarterly payments. I just don't see how the math works out. Do you work with QBO?

Because you have so many expenses, you don't need to save 15% of your gross income. In your case, save 20% of your profit.

[Martha Stewart]

I would also go with 35%. SO many taxes to pay!! The self-employment tax drives me crazy!