Best Guidance to File Daycare Taxes
Daycare taxes are important thing for daycare owner. At least, the owner needs to file the taxes every year. It means that the whole income that earned must reported. However, there are some related expenses that can be deducted from the owner income. Automatically, it can deduct the payment amount. Of course, you will be possible to do the tax deduction as long as you can provide proper organized record and keep all expense receipts.
If the owner of daycare is yourself then you can choose file IRS form 1040. When you have this form then you will need to attach schedule C or schedule C-EZ. All of those forms are needed to report your profit and loss. Schedule SE is also needed to report yourself employment tax. If you have partner in your daycare business then you can choose file form 1065. If you have staff then you should add additional tax forms.
When you have staff in your daycare then payment for applicable federal and state payroll taxes is also needed. If the daycare has corporation structured then file form 1120S is the one for you. Besides that, file for personal income tax return will be included. When you already know what type of form that you should fulfilled then you can start to calculate your tax. Be sure to report the whole income such as child care payment and other fee charged.
Even some ticket that sold from daycare talent showcase, carnival or fund received from local, state or federal reimbursement or subsidies. For the tax return, try to calculate and deduct daycare business expense. For the type of expenses that can be put are wages, meal, toys, art supplies, rent place, utility, furnishing, repair place, cleaning product purchase and etc. If your home is your primary operation site then you also can put your home usage for daycare into the daycare taxes deduction.
Even some vehicle usage for daycare usage is also possible to get tax deduction. The type of vehicle activity that can be deducted are transport the daycare children, business meeting or daycare supplies purchase. When you have yearly paid insurance and license fee then you are also possible to put it as tax deduction. Be sure to sign and date the return.