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Hello everyone
looking for advise and am going to be honest.......I only made 4200 last year (started in may and only had 1 up until a month ago) I didnt keep my receipts cause i knew that i didnt make much.......how do i file my taxes? If i do it with a software program is there a spot i can claim my 4200? or should i go pay tons of money at hr block?
thanks in advance
You can either pretend you didn't do daycare and simply put the amount down under other sources of income on page one and by the time you take off basic personal exexption you will be filling in a lot of zeros the rest of the way. Then start keeping all records for this year.
The other option is to admit you started your daycare and complete the insert forms - forget the number of the form but that is where you fill in all the income, expenses, household expense. Even if you have some receipts you can put them in and then you will create a deduction that you can carry forward to teh next year.
If you have some receipts for things like high chairs you can also just keep those and use them on the next year's taxes with the idea of selling the items to your daycare and changing the use from personal to business.
For sure not worth going to HR block because even if you did the claim nothing and just put the amount down under other you will be not taxed anything and save the cost of hr block.
if your daycare/babysitting is less than $6900 per year and no expenses to offset the income you can claim it as OTHER INCOME. if you are going to earn more and have expenses you will need to file with your tax return a T2125 SUMMARY OF BUSINESS, PROFESSION AND COMMISSION INCOME AND EXPENSES which you have to enter income, daycare expenses such groceries, supplies, etc and home expenses such as utilities, mortgage interest, insurance and so on.
What all are you able to claim as business expenses when doing taxes? I feed the children in my care for meals and snacks and drinks, as most do. I should have been doing it from the start but have only recently started doing separate transactions for my child care items and personal items. On the receipts that aren't separated, can I still claim the items that were purchased for child care purposes? Or scrap those receipts and just keep the newer ones specific to child care expenses? I've only been doing this for 2 months and looking for any help, advice and tips I can get.
Yes. Keep those receipts. I never buy my stuff separately. I throw my families and daycare food all in the same cart. I circle on the receipt what's daycare and total it up. However it is easier if u can separate. I'm just to lazy :). U can claim ur water , gas, hydro for ur house and all toy/ equipement purchases.
I know its an old thread but can someone tell me....do you claim cable and internet? Thanks a bunch....
I claim a percentage of internet, as I use it to advertise. I don't claim cable as we are "screen free" for daycare purposes, but I know alot of providers that do.
http://www.cra-arc.gc.ca/E/pub/tg/p1....html#P98_5077
The CRA booklet for a daycare business. It doesn't specifically talk about internet and cable, but it does say other reasonable expenses will be allowed. If you are claiming the portion that is used for the daycare, it would likely be allowed. If you think a 1/2 hour of t.v. per day, 5 days/ week, that's about 1.5% of the total cable bill. I imagine you could do the same with internet. I'm glad you brought that up, though, I never considered claiming the internet cost, as I know you can't claim the phone unless it is a separate business line. My phone and internet are all in the one bill and the individual cost is not broken down.