Income tax return?

Question

I have some questions on my income tax return...
First I run a home daycare and get paid by the state and made 15,000. You can write stuff off...the more stuff you write off...the more you get back or what?

Second, I also worked as a sub contracted nurse aide and made about 10,000. I had three years to claim this right? What can I claim under this? Uniforms and gas? Milage? Because I didn't keep track of my milage?

What about school? I have always gotten most of my financial aide...if I claim all of this money won't they say I make a lot and hardly cover it...If so does that mean that I should not claim the sub contractor job right now?

I also have two children, one was born last year...some one said the baby had to be born by June for me to be able to claim her...Is that true?

And usually my child credit covers my self employment tax...do you think it will this year too...

I am trying to get the most of my return back and just want to know what is best to do

Oh and my mom lives with me and hasn't worked all year...is she a dependent i can claim...

Answer 1

A child born any time in 2006 is considered your dependent for the entire year. As long as the date of birth is 12/31/06 or earlier you get the deduction.

You can deduct certain reasonable costs for home daycare and you are NOT subject to the exclusive use rule that normally applies to home office deductions.

All income received in 2006 MUST be claimed on your 2006 return. Period. There is is no 3-year rule or exemption from that just because you're also a student.

For the sub-contract work, you can only deduct uniforms that cannot be worn when you are not working. That includes certain safety related clothing and military utility uniforms. Medical clothing such as nurses uniforms and scrubs are not generally deductible since you CAN wear them anywhere even if you normally would not do that. If you did not keep accurate WRITTEN records of your auto expenses AT THE TIME the expense was incurred or the miles were driven you CANNOT claim that.

No way to say if the Child Credit will cover your SE tax; you'll have to complete your return to have an accurate idea of what you're up against.

Answer 2

You probably have a lot of deductible expenses running a home daycare. It would be a good idea to see a CPA (NOT H&R Block) to get advice on what you can deduct and what records you need to keep.They'd probably have some suggestions you might not have thought of on legal deductions.

You need to claim income in the year you receive it, so no, you don't have three years to report the nurse aide income, it must be claimed on your 2006 return. You might be thinking of the rule that lets you collect your refund without penalty if you file up to three years late and have one coming.

You can definitely deduct your uniforms for that job. If you work at a facility regularly, like a hospital or nursing home, then you would not be able to deduct mileage, it would be commuting expense which isn't deductible. If you're traveling to homes of clients, you might be able to - another question for a CPA, since it depends on circumstances.

If your mom's gross income for the year was under $3300 and you provided more than half of her support, then you can claim her if a few other rules are met, which they probably are.

With two kids, and probaibly a dependent mom, $25K isn't a lot of money, so with any luck you'll still get your financial aid. It's not a matter that "they'll say" you made a lot of money - you made what you made, and not to claim it is illegal, plus you'd probably get caught and have to pay the back taxes, plus interest and possible penalties, plus cheating on taxes COULD affect future financial aid.

As long as the baby was born anytime i 2006, you can claim her. The "someone" who told you she had to be born by June is wrong.

On $25,000 income, unless you have a lot of deductions (again, see the CPA) your child credit even with two kids will probably not cover your self-employment tax. You'd almost surely also get the EIC - together, they might cover it, maybe with enough to get something back. You'd pay this on your net income, so it all depends on how many deductible expenses you have.

Good luck.

Answer 3

For the daycare business, you will use Schedule C to figure your income and expenses. The net income after expenses will go on your Form 1040. You will pay self-employment taxes on this net income.

Your work as a subcontractor nurse aide goes on a second Schedule C. You report your income in the year you receive it, you do not have a three-year timeframe. Again, you report your income and expenses as detailed on the Schedule C. Unreimbursed expenses of uniforms and mileage (or actual vehicle expenses) are deductible on the Schedule C from your subcontractor income. You will again pay self-employment tax on the net income from this activity.

You will fill out two Schedules C but only one Schedule SE for self-employment tax.

As Head of Household with three dependents, you will not owe much if any income tax and will receive Earned Income Credit and Child Tax Credit. Depending on your net income, your self-employment tax may be substantial. It's hard to say how much of a refund you will receive, it may be large or small.

Just report your actual expenses. Making up extra deductions will cause problems if your return is examined, and can in fact reduce, not increase, your refund because of the way the Earned Income Credit if computed.

Don't hide your income because of financial aid. With three dependents, your income is pretty low and you should still get financial aid.

Answer 4

For the sub-contract work, you can only deduct uniforms that cannot be worn when you are not working. That includes certain safety related clothing and military utility uniforms. Medical clothing such as nurses uniforms and scrubs are not generally deductible since you CAN wear them anywhere even if you normally would not do that. If you did not keep accurate WRITTEN records of your auto expenses AT THE TIME the expense was incurred or the miles were driven you CANNOT claim that.



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Answer 5

Your federal earnings tax return has no longer something to do with assets taxes different than you may itemize assets taxes on Sch A of your tax return in case you itemize. This overdue in the year you probable won't have sufficient loan interest to make it valuable to itemize because of the fact the standard married submitting joint deduction is over $ 10,000.00. you're able to desire to establish how a lot your assets taxes are so which you would be able to save up the money to pay them on their due date. you may no longer document a tax return withhout your W-2; and you're able to ask him to envision because of the fact the regulation demands that they be issued by using the thirty first of January. of direction you're handling idiots and desktops right here so all bets are off; woulda-coulda-shoulda. additionally verify with the valuables tax branch to establish if all or any your assets taxes are exempted due on your substantial different being in the militia. some states decrease them or do away with them for serving militia workers.

Answer 6

ON daycare, you can write off some of your electric, phone, rent or mortgage, expenses like food for the kids, toilet paper, games and toys.
On nurse, you do NOT have 3 years. Must list it for 2006.
Any baby born until 12/21 is claimable.

Answer 7

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