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I have been doing in home care for some time now, all under the table.im just wondering what percentage of what you are paid do you actually end up with after taxes and expenses for the year. I am either going to go completely legal and start claiming or quit all together. There are many things going on with my current clients that have brought me to this point. Basically i think i have to go legit and raise my rates and start claiming or i just cant afford to do it anymore.
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the above is me, I was registered before but cant find my username any where so I re registered.
I see that this post has gotten many views but not a single reply, thinking maybe cause its from an unregistered user...anyhow.
I know alot of you have issue with anyone working under the table but it is what it is,
So..the current situation is...I had 4 full time and added a 5th part timer. I lost 2 full timers and now have 2 more going part time in a month. so I will have 3 part timers, all at a discounted rate since i wasnt claiming the income on my taxes because I thought I couldnt afford it. My question is..Is it really profitable to do in home day care and claim it? does the govt take approx 30% after expenses or before?
Im at the point now that I will either
a) drop my part timers and charge full rates for 4 full time children and claim it. or..
b) keep my part timers until Jan, then terminate ALL of them and find something else to do with my time, LOL
maybe some of you remember me..I posted a while back about destructive little boys and not being "allowed "to even put them in time out...and the mom telling me she was considering pulling them since she thought that a time out for dismantling my bathroom sink was unreasonable. (this was after them tearing off pieces of my leather couch among other things..) -
You should check out Tom Copeland's blog: http://tomcopelandblog.typepad.com/t...ds-taking-car/
Raise your rates, take your deductions, and get legal. Personally, I would not want to find myself under IRS scrutiny for not claiming income
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agh! this site is giving me a hard time..or my computer is! I just typed a long post saying the above unreg user is ME...but somehow I was signed out...sigh!
I am freaked out about that..part of the reason i want to go legal! thank you
I will check out the blog
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The gov't only take about 15% (I think) & you can write off many expenses (food, car if you use it for childcare, etc).Comment
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You should be profitable as long as you log everything and claim all the deductions you can.
last year I claimed about 3k and after just a few deductions (i didnt start logging expenses until late in the year) I paid about $400, so not too bad. Worst case scenerio, you can always make a payment arrangement with the IRS.
With raising your rates, you might also weed out the families that are just out to get the cheapest daycare and have been kicked out of other daycares. Might save you some headaches in the longrun.
good luck!Comment
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I paid in over 6 k last year (combined total of both fed and state) after deductions. IMO we don't make that much either. I dont have a house full of kids and am not charging more than the going rate here. We deduct everything legally possible. I would rather do it legally (and I HATE PAYING IN THAT MUCH) than go under the table. I agree with the previous poster and say you should raise rates, get rid of the people who can't afford to pay you appropriately. And Get Tom Copelands books, you wont be able to do the prep work to get the accurate deductions without it!Comment
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