Help Taxes

[anicks]

Hey is there anyone out there that can help me figure out what my Net Income is? I need to apply for insurance but need to know my net income. I know that I make good money but after expences and bills I don't really know how much I make. Thanks!:confused:

[kayla]

I use the red leaf calander keeper, they have an expense sheet or also call the insurance and they may have a special form for you to fill out...

[itlw8]

have you done your taxes yet.???? net income is the gross income minus expenses

[Michael]

have you done your taxes yet.???? net income is the gross income minus expenses

This is correct. Hopefully you have a separate business account and records. All income is gross and after deductable expenses is "net" income. A good accountant can save you lots of money. They know all of the laws and loophole and how to best apply them legally.

[anicks]

Ive not done taxes yet but I'm trying to figure out how much I make after all the bills (rent, utilities, daycare food, ect) for getting state medical assistance. And just for my overall knowledge. I know I can't claim all of my rent, home fuel, ect. or can I? I also don't have separate accounts its all combined in personal and business. I know it is probably best to have it separated I just don't know how to organize it well. ugggg I'm frustrated. Thanks for responding

[3girls]

Is it Medicaid? They will probably want you to submit your books (income/expenses) for proof. Then they will average your profits tp see if you are income eligible.

I calculate how much of my rent and power bill the daycare "pays" by taking my operating hours (60) divided by the hours in the week (168) and since thats 37% I pay 37% of those expenses with daycare money. You can do this with phone, internet, water, etc too I believe. If you transport you can expense mileage and a percentage of maintenance and taxes too.

I keep my money and the daycare money separate and pay myself a salary from the daycare to my personal budget every month. Hope that makes sense. Lmk if you'd like me to post my daycare budget categories for ideas.

[anicks]

Oh thanks!!! That helps so much I would love to see your budget plan. I've been doing daycare for about 4 years but just now really making money and I'm so unorganized its crazy! The whole budgeting thing is messing me up.

[CheekyChick]

My accountant gave me a great worksheet that I filled in to get my "net" income. Actually, I won't know my "net" income until she completes my taxes, but the worksheet really helped to get everything organized. Let me know if you'd like me to e-mail you a copy.

[3girls]

Ok here is how I list my income

Family 1 $
Family 2 $
Family 3 $
Food Program $
Total Income $

And these are my expense categories

(Payouts)
Tithe
Salary

(Basic Costs)
Rent Portion
Heat Portion
Maintenance
Equiptment
Internet
Daycare Phone
Liability Insurance

(Consumables)
Toys, Books Art
Paper Goods
Office
Food
First Aid Supplies

(Transportation)
Van Gas
Van Payment
Van Reimbursement
Van Registration
Van Insurance
Van Maintenance

(Business Costs)
DBA Registration
Registry Fee
Advertising
Training
Self Employment Tax

(Other Expenses)
Costco Membership
Netflix
Fire Extinguishers

Hope this gives you some ideas on getting your own records going

[Lucy]

Costco Membership!! Never thought of that one!! Thanks. My appt with my tax guy is tomorrow night.

[Crystal]

You need to do a Quarterly Profit and Loss Statement. It is 3 months of income, minus three months worth of business expenses. You figure your business expenses for mortgage/rent, utilities, etc. by figuring out your time space percentage, which, for now, you can estimate.

PM me and I'll send you a sample.