taxes answer,how should I fill my taxes.?

Question

I am a baby sitter from home,I care from 4 kids.I make $345.i pay 10% of my pay to the church .I am separated from my husdand.i am puting one child on my taxes and he will put the other 2 on his. i pay $60 weekly for school bus for my 3 kids.I pay $75 phone bill monthly.

i live in new york

i am also NOT a lincenced babysitter.Also i have a small purebreed dog someone said i could get taxes back for having it.

i live with all 3 of my kids

Answer 1

By my calculation you have an annual income of $17250 if you have made $345 for 50 weeks of the year. Your standard deduction for HOH would be $7550. It is not likely that you would have more than that in itemized deductions. However some of your expenses can be taken on Schedule C to reduce your taxable income. Ideally you would want to reduce your taxable income to $8,100 to achieve the maximum EIC for HOH with one child of $2747. That would give you the maximum EIC and the less Self Employment tax (SE). At $8,100 of taxable income you will not need Child Tax Credit as you tax is going to be zero. Your SE tax would be $1,239 That would give you a refund of 1508 plus $40 telephone rebate. The state of New York will want about $324 and NY City will want $236 That should leave you about $988 in your pocket. I am not from NY so I am make an estimate. You should see a tax professional at one of the places that will do it for nothing. You should be able to find one on the Internet. Make sure that they know how to reduce your taxable income to that $8,100 or you will pay a lot more in SE and the State and Local tax.

Answer 2

From your answer I assume you make $345 per week. I also assume that you have not lived with your spouse for the last six months of 2006.

You will file as a Sole Proprietor using Schedule C. Your filing status will probably be Head of Household unless someone else lives with you and maintains the house.

Even if two of your children are claimed as dependents on the father's return, you may still get the Earned Income Credit based on two children.

Unless you have a lot of other deductions, your tithe will not appear on your tax return. Transportation costs to school are not deductible.

If you have a separate phone line for your daycare, that would be deductible. The first phone line is not deductible.

Look at Schedule C. It will list the kinds of things you can deduct.

Answer 3

Stop.

www.IRS.gov
All forms and instructions
Look up exemptions - to claim a child.
Look up Child Care credits.
Look up earned income credits.
Look up Head of Household - and I believe this is best for your to use based on your qualifications

You also need to file a Schedule C - as you have a home based baby sitting service and many of your expenses (perhaps 60% of heat, rent, telephone, etc) may be deductible on your schedule C, as you pay these to maintain your business to be a home based baby sitter.

Also from www.IRS.gov. - check out FREE FILING, by clicking on that site.
You can file electronically free - using that site if you have less than $52,000 in AGI (line 38 of the 1040).
Just prepare the return in rough draft when you download the forms from the www.irs.gov - site and then answer the questions online to report your income electronically online FREE.


Don't allow anyone to claim your children. You must follow the rules, unless they are specifically spelled out in the divorce decree. And please please don't give their deduction up.
You have child credits, and earned income tax credits coming back to you if the children live mostly with you.
The credits mean thousands of dollars per each child, coming back to you - and yes that means cash from the IRS comes to you because it costs more money for you to raise your children than you make.

1. The children must live with the taxpayer for the majority of the time to claim them. (over 50%)
2. You must provide most of their support. Shelter, clothing, food, utilities, transportation etc.
So check out the guidelines.

You will receive thousands for each child as you read the qualifications. I do not suggest you allow anyone to claim the other 2 children, as they will receive the thousands of dollars back to them.

GOD bless us one and all, always.
CPA-retired
MBA-Boston Univ.

Answer 4

I suggest going to www.irs.gov and applying for an EIN number and make a name for you babysitting buisness say something about daycare services. That way you can claim half of your utilities, rent or mortgage for the whole year and get your earned income credit for the child you are going to claim. If you have any questions contact me below.

Answer 5

You can go to www.expresstaxrefund.com and fill out all of your information there, it's all listed step by step. If anything you can always call the free support line and ask them any questions that you have. It's quite easy and fast.

Answer 6

as head of the house with child tax credit and a whole lot of itemization