2007-12-30 11:05:20 · 3 answers · asked by Candace Kuviak 1 in Pregnancy & Parenting ➔ Parenting
Well since you are self employed you will be paying a 15% self employment tax (whihc is social security and medicare) on top of regular taxes. The best thing to do is keep reciepts for everything you buy for the daycare, and pay quarterly taxes. You can use turbotax for a small fee. They can help you figure out what you need to pay. Or if your husband is working have him claim single 0, which should cover your taxes. That's what I have my husband do, and we even out every year.
2007-12-30 11:10:04 · answer #1 · answered by Melissa 7 · 0⤊ 0⤋
It is always best to engage the services of a professional to help you. There are many choices you can make depending on various factors effecting your total tax situation. A tax and accounting professional can advise you how to best conduct your business and pay the least amount of tax. I am sure there is more to your tax situation then just handling the taxes for your business so without having knowledge of your entire situation no one here can give you any meaningful advice. Be safe tax laws are complicated talk to someone who understands them. Trying to save a few dollars on fees could cost you much more in taxes in the long run.
2007-12-30 19:25:46 · answer #2 · answered by K K 5 · 1⤊ 0⤋
You have to pay self-employment taxes!! So you have to figure out your self-employment tax, federal tax, state & local taxes every month. You have to send in quartly payments as well. Check out this web site: www.toolkit.cch.com
It looks a lot more complicated than it actually is...you can also call you local IRS office for assistance (the lady I talked to was really nice and helpful) Good luck!
2007-12-30 19:16:50 · answer #3 · answered by Barbiq 6 · 0⤊ 0⤋