Daycare.com ForumDaycare Insurance Daycare Insurance LIST YOUR DAYCARE!

FIND A DAYCARE!

Facebook


Go Back   Daycare.com Forum > Daycare and Taxes

Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

Reply
 
Thread Tools Display Modes
  #1  
Old 02-16-2010, 07:53 AM
emosks's Avatar
emosks emosks is offline
Daycare Member
 
Join Date: Dec 2009
Location: Midwest
Posts: 288
Default How Much Do You Keep Set Aside Each Week/Month for Taxes?

for taxes? Do you do a percentage? Or set amount?
Reply With Quote
  #2  
Old 02-16-2010, 08:09 AM
tymaboy's Avatar
tymaboy tymaboy is offline
Daycare.com Member
 
Join Date: Oct 2008
Location: Iowa
Posts: 446
Default

Keep all your DC related receipts. I do not set a certian amount aside, each yr I say I will but have not. We have been able to get a small refund each year so far.
Reply With Quote
  #3  
Old 02-16-2010, 08:35 AM
momma2girls's Avatar
momma2girls momma2girls is offline
Advanced Daycare.com Member
 
Join Date: Nov 2009
Location: midwestern
Posts: 2,151
Default

If you keep receipts of everything you purchase all yr. - I always get money back as well. I guess it really depends on your spouse and what he has taken out as well though.
Good Luck!!!!
Reply With Quote
  #4  
Old 02-16-2010, 09:28 AM
emosks's Avatar
emosks emosks is offline
Daycare Member
 
Join Date: Dec 2009
Location: Midwest
Posts: 288
Default

We do keep all receipts for food and supplies but I'm sure it's not going to be enough...or at least it wasn't last year!!
Reply With Quote
  #5  
Old 02-16-2010, 09:53 AM
originalkat's Avatar
originalkat originalkat is offline
Daycare.com Member
 
Join Date: Dec 2009
Location: Kansas
Posts: 1,240
Default

I always get a refund. But if you find that you owe at the end of the year, I would put away between 15 and 20%.
__________________
Originalkat
Reply With Quote
  #6  
Old 02-16-2010, 09:55 AM
booroo's Avatar
booroo booroo is offline
Daycare.com Member
 
Join Date: Feb 2010
Location: Nebraska
Posts: 185
Default

Social security is .062% so if you make $1800.00 a month take that xs .062 that would be 111.60; medicare is .0145 again what you make xs the .0145. Then find out what tax bracket you are is, if 20% tax bracket then take your total earnings, so if you make a steady income of $1800 every month, that comes to $21,600.00 take that xs 20% that would come out to be $4320.00 to pay into taxes. That is then remember state taxes as well, what I would do is pay in about $1500 and then rest send to federal.
You account should be able to tell you how much to pay in.

Good luck.
Reply With Quote
  #7  
Old 02-16-2010, 11:08 AM
actaktmdt's Avatar
actaktmdt actaktmdt is offline
Daycare.com Member
 
Join Date: Feb 2010
Location: Michigan
Posts: 138
Default

My plan is save half of what ever I make will be set aside into savings, just to cover myself until I figure it out and get some sort of baseline set for the next year.
Reply With Quote
  #8  
Old 02-16-2010, 12:22 PM
AmandasFCC's Avatar
AmandasFCC AmandasFCC is offline
Senior Member
 
Join Date: Aug 2009
Posts: 409
Default

Yeah my accountant said to put away 20% of income AFTER deductions. I was spending more than I was making for my first 8 months though so I don't have a penny put away Sucks when it takes a while to fill spaces!!! But hopefully that'll mean a return in April!
Reply With Quote
  #9  
Old 02-18-2010, 12:37 PM
actaktmdt's Avatar
actaktmdt actaktmdt is offline
Daycare.com Member
 
Join Date: Feb 2010
Location: Michigan
Posts: 138
Default

just a quick thought, you mentioned you are all ready full, based on that financial information can you could give your accountant that number and then do an estimate of how much in deducations to give you a better ball park to set aside......

also on a side note do you know what the difference is between tier one and 2 in the food program?
Reply With Quote
  #10  
Old 01-05-2011, 10:39 AM
JeepGirl6's Avatar
JeepGirl6 JeepGirl6 is offline
Daycare.com Member
 
Join Date: Dec 2010
Posts: 317
Question Tymaboy

Quote:
Originally Posted by tymaboy View Post
Keep all your DC related receipts. I do not set a certian amount aside, each yr I say I will but have not. We have been able to get a small refund each year so far.
This is my first year doing my daycare taxes..I am just curious how much you made to get money back, if you don't mind me asking. It would be just be filing because my fiance and I are not married yet, yet own a house together...I have added up what I have made this year and it is around $14,000 without any deductions.. How much do you pay quarterly? I know with deductions I will be in the poverty level so I was told I won't have to pay anything, sorry if it's a stupid question, it's my first time doing small business taxes...
Reply With Quote
  #11  
Old 01-05-2011, 11:03 AM
Little People
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by actaktmdt View Post
just a quick thought, you mentioned you are all ready full, based on that financial information can you could give your accountant that number and then do an estimate of how much in deducations to give you a better ball park to set aside......

also on a side note do you know what the difference is between tier one and 2 in the food program?

I am in TN an was told this:

T-1 Breakfast $1.19 Snack .66 Lunch $2.21
T-2 Breakfast .44 Snack .18 Lunch $1.33

And they told me if 50% of the kids in my area school are on low income (food at school) then I would be in T-1 and if if was at 51% I would be T-2. So I called a sponser and she said i had to come to the office for a 6 hour class. I do not have anyone to watch my daycare children. So I decided not to enroll. HTH
Reply With Quote
  #12  
Old 01-05-2011, 11:37 AM
cillybean83's Avatar
cillybean83 cillybean83 is offline
Daycare.com Member
 
Join Date: Dec 2010
Location: Tennessee
Posts: 543
Default

this is my first year, so I didn't make much $$, I opened in April, didn't fill a single spot til may, and wasn't full until July, then I lost a kid in August. I lost money in 2010 due to all the start up costs, so I'll be getting a refund this year.

I was told that filing schedule C type stuff makes you more prone to audit, so make sure you document everything! I'm kinda freaked out but I think I documented everything correctly!
Reply With Quote
  #13  
Old 01-05-2011, 12:51 PM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 1,987
Default Paying taxes

Quote:
Originally Posted by booroo View Post
Social security is .062% so if you make $1800.00 a month take that xs .062 that would be 111.60; medicare is .0145 again what you make xs the .0145. Then find out what tax bracket you are is, if 20% tax bracket then take your total earnings, so if you make a steady income of $1800 every month, that comes to $21,600.00 take that xs 20% that would come out to be $4320.00 to pay into taxes. That is then remember state taxes as well, what I would do is pay in about $1500 and then rest send to federal.
You account should be able to tell you how much to pay in.

Good luck.
This is a good guideline to follow. Conservatively, you will owe about 20% of your gross income in federal taxes (social security and income tax).
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #14  
Old 01-05-2011, 12:55 PM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 1,987
Default Paying taxes

Quote:
Originally Posted by JeepGirl6 View Post
This is my first year doing my daycare taxes..I am just curious how much you made to get money back, if you don't mind me asking. It would be just be filing because my fiance and I are not married yet, yet own a house together...I have added up what I have made this year and it is around $14,000 without any deductions.. How much do you pay quarterly? I know with deductions I will be in the poverty level so I was told I won't have to pay anything, sorry if it's a stupid question, it's my first time doing small business taxes...
i wrote a recent blog post on this: http://tinyurl.com/2as69og
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #15  
Old 01-05-2011, 12:56 PM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 1,987
Default Food Program payments

Quote:
Originally Posted by Little People View Post
I am in TN an was told this:

T-1 Breakfast $1.19 Snack .66 Lunch $2.21
T-2 Breakfast .44 Snack .18 Lunch $1.33

And they told me if 50% of the kids in my area school are on low income (food at school) then I would be in T-1 and if if was at 51% I would be T-2. So I called a sponser and she said i had to come to the office for a 6 hour class. I do not have anyone to watch my daycare children. So I decided not to enroll. HTH
You are making a mistake not to enroll in the Food Program. For every full time child you care for you can expect to get either $500 or $1000 per child per year from the Food Program. That's worth spending 6 hours at a training and paying for someone to watch the children.
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #16  
Old 01-05-2011, 12:58 PM
grandmom's Avatar
grandmom grandmom is offline
Daycare.com Member
 
Join Date: Mar 2010
Posts: 627
Default

Tom,

I'm surely going to owe a penalty. Is it a stiff one?
Reply With Quote
  #17  
Old 01-05-2011, 01:00 PM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 1,987
Default Penalty?

It's about 10% of the tax you should have paid. At this point it doesn't make sense to worry about it since there's nothing you can do. File your taxes and pay what you owe. If there is a penalty for not paying in earlier the IRS will calculate this and send you a bill.
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #18  
Old 01-05-2011, 01:09 PM
JeepGirl6's Avatar
JeepGirl6 JeepGirl6 is offline
Daycare.com Member
 
Join Date: Dec 2010
Posts: 317
Default

Can I get on the Food Program if I am not a licensed provider?
Reply With Quote
  #19  
Old 01-05-2011, 01:12 PM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 1,987
Default Food Program payments

Depends on your state. Most states only allow licensed providers on the Food Program but an increasing number are allowing license-exempt providers to participate. Contact a local Food Program sponsor for the answer.
__________________
http://www.tomcopelandblog.com
Reply With Quote
Reply

Tags
accountant, deductions, taxes

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -7. The time now is 09:48 PM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming