What can a child care provider be rembursed for or use as tax write off?
356977
When it comes to tax deductions and expense write offs, the best thing you can do for yourself is to consult with a certified and experienced tax professional.\n\nThe legal form of your business is a major factor in how you pay texes, sloe proprietor, limited partnership, corporation?  If you are not sure ask an attorney.\n\nThere is nearly no limit as to what you can purchase and use for a business.  What you can write off however is a different story.  When you make purchases with the sole intention of business use, you should consider the depreciation of the asset,(thing you own are considered assets).  To estimate the depreciation value of an asset, try deviding the cost of the item by the number of years you expect to retain the asset in service, the resullting number is the amount of money you can deduct from your taxes each year untill the asset no longer serves your needs.  Another option is to write off the entire depreciation in the first year of ownership.  Though this may decrease your tax liability dramitically for that year, there will be no other tax benefits to the ownership of that asset.\n\nYou can also deduct the cost of operation such as rents, mortgages, utilities, insurance, interest paid on loans (real estate), vehicles and the cost of operation of the vehicle, advertising, accounting, legal fees.  Pretty much any expense that you incur for the business, and certain things that you share, such as a residence, or a car can be used as deductions at tax time.  Be careful not to double deduct items.  If you cliam your car as a business expense, don't claim the interest you pay on the loan in your personal taxes.\nThere are also limits to which you can make deductions; remember you don't want to run in the red with your taxes for more than a couple of years, as the IRS will closely scrutinize your tax returns and records.\nHope this helps.\nGood luck
254957
Here are free business plans on childcare business:\n\nhttp://www.sba.gov/library/pubs/mp-30.doc\nhttp://www.misbtdc.org/documents/BPWORKBK.pdf\nhttp://www.misbtdc.org/documents/CDCPLAN.pdf\nhttp://sbdcnet.utsa.edu/sbic/bplans.htm \n\nYou may want to read the free article "How To Start Your Own Day Care Center" http://www.powerhomebiz.com/vol40/daycare.htm \n\nIt covers various aspects of starting and running a daycare center including the demand for daycare centers, how to start this business, shoestring strategies, how to operate a daycare center, tips on caring for the children, income potential, how to manage your daycare, marketing your business and other additional income potential. There are so many things to learn about the business that the first step is to read everything you can find.\n\nFor in-depth information, I suggest checking out the following books:\n\n- Start and Run a Profitable Home Day Care \n- The Daycare Provider's Workbook \n- Start Your Own At-Home Child Care Business \n- So You Want to Open a Profitable Child Care Center : \nEverything You Need to Know to Plan, Organize and Implement a Successful Program \n\nIt is also important that you learn the tax rules affecting daycare centers, especially if you are going to open one from your home. Here is the IRS page on child care centers: http://www.irs.gov/businesses/small/industries/content/0,,id=99878,00.html
923268
When you fill out the W-4 form, there's a worksheet to help you estimate the number of allowances to claim.  At the very least, you can have two--one for yourself and one for your child.  \n\nOnce you start making house payments, the taxes you pay out of your paycheck can be decreased because mortgage interest is deductible on your income tax return.  Be sure to look at your W-4 again in April or May and do the Deductions & Adjustments worksheet.
1121540
It would be absurd for anyone to offer a definitive answer for your situation without looking at the language written into your contract.\n\nTechnically, you offer a service, and the contract is for payment for services rendered.  The contract also states that services rendered would be provided under certain conditions and allowances.  (I assume this much from what you've indicated)  \n\nHowever, there is specific language which needs to be used in the contract- language which makes your agreement "legal" and language which covers any possible loopholes which may exist.\n\nAt the minimum, both parties need to be identified and referred to in the same manner throughout the entire document.  Dates and dollar amounts specified, and in some cases written out completely (no numbers, as numbers can get "misread" 1's and 7's sometimes look similar, dependant on handwriting or typeset)  All stipulations must be clearly indicated, and any signatures must be dated, and prefaced with something indicating all parts of the document were read, understood, and accepted as a contract for services rendered.\n\nIt's probably not worth the trouble to pursue this matter.  Have you truly lost a ton of money, or are you trying to get back at the parent?\n\nConsider the children.  If you think them as angels, do you want to put them through a possible court proceeding?
738584
Your story is inconsistent with normal operation for tax collectors.  You should provide more detail as to who is doing all of this stuff.  It is not at all uncommon for tax examiners to question if a child being used to qualify for Earned Income Credit lives with the taxpayer and to require some proof of that if there seems to be a question.  If children are removed from the taxpayers home by a social service agency that has nothing to do with the "tax collector".
1088966
With regards to licensing a Childcare facility, information can be obtained from the STATE GOVERNMENT-, HUMAN SERVICES DEPT OF-, Child Care Licensing \n\n(Check the State Government pages of your local telephone book). \n\nAll other legal, accounting or tax matters should be referred to an appropriate licensed professional.  \n\nTheir assistance may facilitate your compliance with the local licensing requirements of the community, in which you reside or conduct business.
1175603
Anything related to the operation of your business can be deducted as a tax write off.\n\nFrom the book "422 Tax Deductions for Businesses and Self Employed Individuals" by Bernard Kamoroff, here are some things you can deduct:\n\naccountants\nadvances paid to contractors, vendors, professionals etc\nadvertising and promotional expenses\nadvertising\nallowance for bad debts\nalarm systems for your business\nanswering service fees\nassessments of local governments for repair of water lines, etc\nappraisal fees to determine amount of loss\nassets\nassociation dues\naudit \nautomobiles used for business\nattorney fees\nATM fees\nawards to employees\nbad checks\nbad debts\nbank charges\nbarter transactions\nbenefits of employees\nbillboard rentals\nbooks\n\nAnd a lot more. I suggest you get a copy of this book to learn what you can write off come tax time\n\nCheck with the IRS rules governing tax deductions, especially assets and depreciation
773963
Either way, you're going to have to get some kind of business liability insurance.  If you teach at home, you may be able to get a rider on your homeowners/renters insurance.  \n\nIf you're a homeowner, and have a specific space in the house that is only used for your studio, you can get a small deduction on your taxes.
489616
If it's a non-profit organization, you receive the same tax write off as any other charity.  Get a receipt from the organization.
67200
You will probably hear from the IRS when you submit your income taxes.  Make sure you have documentation for your support of the child you are claiming on your taxes.
581614
call your local dept of human services....they usually keep a list of child care providers that they leave out for clients to browse through.\n\n\nALSO: put a ad in your local newspare...put out some flyers
363232
i am a tax preparer and the best thing for you to do is to go ahead and file and let them (irs) take what you owe so when you get trough paying them you can have your money for yourself.  Please have a dependent so that you can get enough back so that maybe you may only have to pay back two years, not child support but the irs
95234
Child Care Expenses\n\nIf you have others take care of your children so that you can earn a living, most if not all of those costs can be deducted from your income. Costs that qualify include daycare, day nurseries, babysitters, day camps, and boarding school expenses.\n\nHere's what you need to know about the rules:\n\n   1. You have to be working.\n      In order to be claimed, child care expenses must be incurred so that you or your spouse can work, run a business, go to school, or carry on research that's funded by a grant.\n\n   2. The lower-earning spouse claims the deduction.\n      If you are married, the childcare expenses generally have to be claimed by the lower-earning spouse. The thinking is that otherwise, that person would stay at home to take care of the children. In some cases, if the lower-earning spouse is unable to care for the children, the higher-learning spouse may be able to claim the expenses. This includes situations where the lower-earner is disabled, in prison or hospital, or confined to bed or a wheelchair for at least two weeks.\n\n   3. Each child increases your deductions.\n      The total amount you can claim is determined by the number and ages of your children. For every child who is under the age of seven at the end of the year, you can claim $7,000. For every child over seven but under 17, you can claim $4,000.\n\n   4. You can't claim more than two-thirds of your earned income.\n      Your total allowable annual childcare deduction is the total of the individual maximums for each of your children. This means you should list all your children on your tax return, even if you only make minimum child care payments for one or two of your children. For example, suppose you have a five-year old for whom you spend $10,000 for daycare. You also have a fifteen-year-old for whom you don't use any childcare. You can still claim the full $10,000 of expenses, since your maximum limit is $11,000 - $7,000 for the pre-schooler, and $4,000 for the high-school student.\n\n      The amount of childcare expenses you can claim is also limited to two-thirds of what's called your earned income. Essentially, this means your salary and any business income.\n\n      The total amount you can claim in a year is whichever is less - two-thirds of your earned income, or the total allowable given the number and age of all your children. An example? Suppose you are the lower-earning spouse, with $21,000 of earned income. You have two children under the age of seven. They each give you a possible claim of $7,000, or $14,000 combined. You also have a 10-year-old. That gives you another $4,000, for a total potential child care deduction of $18,000 for the year. But two-thirds of your earned income is $14,000. Since that's lower than the $18,000, the most you can deduct is $14,000 of expenses.\n\n   5. Students can claim deductions.\n      Going to school? Single parents - as well as two-parent families where both parents are going to school - can deduct childcare expenses. For each week the single parent (or both parents in a two-parent family) goes to school full-time, the maximum deduction is:\n          * $175 per week for each child under the age of 7\n          * $100 per child between the ages of 7 and 16\n          * $250 per disabled child. \n\n      If you are going to school part-time, for each month you claim a part-time education credit, you can deduct:\n          * $175 per week for each child under the age of 7\n          * $100 per child between the ages of 7 and 16\n          * $250 per disabled child. \n\n      If you are studying part-time and have a spouse who works, the childcare deduction is also limited to two-thirds of your spouse's earned income.
904936
If you are tax exempt, what are you going to write it off of?
285145
20% of his net salary...the amount he actually recieves after taxes and health insurance premiums but that net should not include pre-tax contributions to his IRA... + 50% of any unreimbursed medical, dental costs for the kids and 50% of reasonable costs for the childrens activities (Sports uniforms, scouting dues,etc) Such activities and the related expenses should be mutually agreed upon, and you should seek a percentage of unreimbursed day care costs. You probably will have to seek out full time employment, if not immediately, then shortly after your youngest child starts school.Plan accordingly.\nGood luck to all of you.
1164428
if you do the day care from your home you will only pay one rent and if you go thur your local social services and get properly licensed they will remburse you for a portion of your untiliies and rent to compensate for the childcare, on top of the pay for your services. there is so really good money in it...
1154996
As long as you are claiming the kids as dependents there is no problem using HSA funds for your kids medical expenses.  Make sure you keep track of the withdrawals and save the receipts just in case Uncle Sam wants to see them.  The easiest thing to do is use your HSA debit card.  Don't forget you can use those funds for other things like over the counter meds, dentists, orthodontist.  The IRS list of "qualified medical expenses" is pretty long.\n\nYou also mentioned that the kids are on your wife's group sponsored plan.  Many employers don't contribute to the family members premiums, and group insurance rates for kids can be pretty high.  You might want to look into putting your kids on an individual plan.  \n\nI do this frequently with my clients in Florida and the savings can be as much as $200-$300 per month.