How do you figure your taxes for your home daycare business?
How do you figure your taxes for your home daycare business?
I am starting my home daycare business and dont want to get into any legal trouble.
i know there is a self employment tax due 4 times a year (social security and medicare)
income tax due at end of the year
what other taxes are there
how do you know what to set aside for taxes? do you get somewhere like h&R Block to do your taxes for you?
someone told me to just set aside 25% of my total income and that would be plenty to set aside. do you find that to be true
I am in texas if that helps
also what items do you get tax exempt on and if you filled out a tax exempt form and didnt pay taxes for a certain item doyou still need to claim that receipt at the end of the year?
I could use some advice.
This conversation was published at Accounting Services of Charlotte, NC
ChelseaAugust 17, 2011 at 6:03 pm
Yes you can go to places like H&R Block to do your taxes. In general, you need to report all the payments from the parents and any other income for your business (such as grants and subsidies). But you can deduct any business related expenses, such as costs of meals or snacks, insurance premium, toys and equpments. You can even deduct part of your rent/mortage and utility bill using Time-Space Percentage (your tax preparer should know this).
I’m not so sure about the tax exmpt items. I believe if it’s business related, it’s still tax deductible. You can check with your tax preparer.