I just starting home day care and i want to know what i have to start doing now to pay taxes in April.
2007-09-17 00:39:36 · 2 answers · asked by botera 1 in Business & Finance ➔ Taxes ➔ United States
Start keeping good records for income and expenses.
You will also need to track the number of hours your home was used as a daycare this year.
It would be a good idea to contact a EA or CPA in your area and he or she can get you started. This is not a tax return that you want to attempt on your own. See a professional.
2007-09-17 02:10:39 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
You'd be wise to see a CPA and ask what records you need to keep and what taxes you need to pay and what other forms you'll need to fill out.
In brief: keep very good records of all of your income and of any expenses to make that income. You'll file quarterly estimated returns for federal, and maybe for state or local depending on where you live, showing your net income for that quarter and remitting the tax on that. In addition to income taxes at the various levels, you'll also pay around 15% of your net income to the feds for self-employment tax, which is for social security and medicare.
Early next year you'll file a form 1040 along with Schedules C and SE.
2007-09-17 04:06:36 · answer #2 · answered by Judy 7 · 0⤊ 0⤋