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  1. #1
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    Default hdc income tax deductions

    Just wondering if anyone knows how much income tax will get deducted monthly for each child in care ? I want to put a lump sum into the bank every month for my home day care, but im not sure how much. Any suggestions ?

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    If you're talking about what you'll earn as a provider then it depends on how much you make in the year. The first $11,000 you profit in the year is free from any tax - anything over that is what you should be thinking about.

    Try and figure out how much you'll earn in the year and then it will be easier to estimate.

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    I'm going to a home daycare provider tax seminar at Childreach on Feb. 19 and it only costs $5 so if there is still any room available I'd sign up if I were you. This is my first year being self-employed ever in my life so I need the tips!

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    Quote Originally Posted by Mom4Ever View Post
    I'm going to a home daycare provider tax seminar at Childreach on Feb. 19 and it only costs $5 so if there is still any room available I'd sign up if I were you. This is my first year being self-employed ever in my life so I need the tips!
    Yup. Im all ready signed up for that. It should prove to be very helpful.

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    I am not much help either ...and you will likely find different answers from every HDP as i have talked to some who claim they NEVER have to pay anything that they can always get there income after expenses down to under the $11,000 and others who say they pay around $3,000 a year... last year was my first year but it was only 4 months and I took a 'loss' so to speak from start up costs being way more then the income I had ... this is my 'full year' being 12 months in business plus having full enrollment...and my expenses were VERY high both last year and this year as I am still purchases lots of toys and equipment PLUS the normal expenses of food, craft supplies, field tirps and such.

    I have been putting 10-20% of each weeks fees collected into my high interest savings depending on what is left after my expenses ... to go towards taxes if required but hopefully I will not need to pay that much work that magic Accountant Angel Then it can sit in my savings for 'low enrollment' times or accumulate for other years when my expenses will not be as high and therefore taxes will be required.

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