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Ok I am a registered member but have logged out for my privacy. This is my first year of doing family childcare. I began in May but have been paying liability insurance, purchasing items for set up, and taking classes since December 2013 and January 2014. The reason being I had planned on opening in 2013 but had to wait for my landlord to submit the notarized letter to licensing. The fees incurred during this time can be included on my taxes as start up cost fees and such, right? Also I know that were supposed to file quarterly, but I have not yet due to finances. So what is my penalty for not filing quarterly. I am a single parent and really have made just enough to pay my bills. I am no where near fully enrolled yet and have pretty much broke even. At this point I report my income but me and my children still qualify for medical assistance, even with me being truthful about my income and reporting it. How do I explain this to the IRS as to why I haven't paid into my taxes as required quarterly? The plus side is I have some interviews set up and hope to enroll more kids soon. This will help me pay into my taxes, but unfortunately I'm not there yet. Just looking for advice and clarification. Thank you.
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Taxes
You can deduct the expenses you listed before you started caring for children as a business deduction on your 2014 tax return. You may or may not have had to file quarterly. It depends on your situation. If you are married it's possible your husband had enough withheld to cover your taxes. Or, you are low income and owe no federal income taxes and had a small profit, so you may not owe Social Security taxes. If you do owe a penalty, it will be small, so don't worry about it. You don't have to explain anything to the IRS. If you think you might owe quarterly, file the last quarter form (Form 1040ES) by January 15, 2015. Then file your taxes and let the IRS figure out if you do owe a penalty. -
Thank you for your response, it was very helpful.Comment
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