Help! How Do You Calculate Deductions

[dEHmom]

Ok, First year officially doing this. I had a late start, and I know I have not made enough to claim deductions, or if I made just enough, then I wouldn't get to deduct much.

My questions, at least for next year, are:
1) How do I calculate it? Do you guys take all of your receipts for everything, and then use a formula? or do you specifically have receipts only for daycare? I was advised by my collegues that they just take all of their receipts for everything, and then go from there.

2) Can I carry forward some of the initial deductions/start up costs to next year if I can't claim this year?

umm....I think this is all. Oh I am in Canada, and I know things may differ from USA to Canada, but generalized info would be a great start.

[Unregistered]

I am registered user who prefers not to disclose my personal finances. Hope ya'll can understand!

Is this right?

Lets say for July 2010:

5 days a week 10/hrs/day actual care plus prep/cleanup
200 hrs care/ 672 hrs in month= 30%

Income= $640 for the month
ALL RECEIPTS TOTALLED TOGETHER (I have removed the ones the are not shared expenses between my family/personal use, and daycare, such as video games, car expenses, etc)

receipts total- 567.50 X 30% = 170.25 deductible?

then home expenses such as electricity etc.

All home expenses totalled= $555

900sq ft/900sq ft X 200hrsAC/672hrs= 30%

$555 X 30%= 165.17 deductible?

Does this sound right? Am I doing something wrong?

[dEHmom]

I honestly don't have a clue! Sorry I can't say if that is right now not.

I'm wondering, if a situation where the income varies month to month, would it be better to calculate income for whole year, all deductions for year, and t/s? Or go monthly?

This is confusing!

[TomCopeland]

Claiming expenses

When doing your taxes you will be calculating your income and expenses for the year, not by the month.

Since I'm not familiar with Canadian tax rules, I' can't answer your question.