Taxes owing??

Hey Ladies!
This might be too much of a personal question for some but this is my first full year filing for taxes with my day home (last year I was only open for like 7 months). Just wondering if you guys know on average how much taxes you have to pay at the end of everything? I know it probably all depends on each person but I was just wondering if any of you were willing to share how much you had to pay in previous years? I have been putting money aside for this but kind of want to be mentally prepared to see what could be owing and don't want to be shocked when we do our taxes this year. Thanks!

I paid $1300 hundred last year. I had a good year. This year will not be so good. Maybe even a refund. I think it differs for each provider. You know, your expenses vs income.

Yes it will depend on your year. 1st year I was only open 2 months, paid $300. 2nd year paid around $2500. This year I'm expecting $3-3300.

I set money aside each month for taxes. This year it really varied but lately I've been putting $300 away every 2 weeks and hope to continue to put $4-500 away monthly. Some months it's easier than others!! I also finally set up an RRSP so will be contributing to that as well every month.

Last year it was$3000 but it seems to go up gradually every year. I put aside about $300/month.

But if you are paying $3000/month, how much were you making per month for it to be that number? It will be my first time claiming this year as well, and when I see numbers like that, I am scared...lol

I agree it all depends on how much you made and what your deductions are .......I think my gross last year(2012) was $43k and after my deductions and write offs I had to pay $3300 which included CPP ....I got smart this year and started paying monthly installments so I wont owe so much at one time cause I refuse to pay interest. I haven't added up what I made for 2013 yet but I was full for most of the year so it will be similar.

You tend to have more write offs in the first couple years of doing daycare than later too in the sense of equipment you buy to get started. It also depends on your house in the sense of how much space you use and how many hours a day you are open. Those two things make a difference in deductions as the percent of utilities/property taxes/mortgage interest/repairs to your house, etc. is based on the time used formula - ie a person with a larger house that uses more space and longer hours will have a greater deduction. You will always have CPP to pay so rare that you will get a refund on your taxes. If you get your income down enough (gross earned - expenses = net income) there is a chance your hubby can claim you on his taxes and that helps too.

It is a good rule of thumb to put aside the income from one child towards your taxes if you can. Then if there is any excess you treat it as your refund.

I was hit hard last year and I am now putting aside $600 per month to cover taxes...that is what it worked out to last year. But I also do some extra work on the side not related to daycare, so that added to my income and I had to pay tax on that too. But so much depends on variables...how much you charge, how many kids, what write-offs, etc.

My first year I paid $40, the 2nd year I paid $400, my third year I paid $1200. I am guessing it will be around the $1500 mark this year. Your accountant should be able to give you a rough idea of how much to put away every month. My accountant told me the 1st year to put away approx. $100 a month. Of course I never did lol. I just make monthly payments to CRA on my payday's.

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Originally Posted by ttremble88

But if you are paying $3000/month, how much were you making per month for it to be that number? It will be my first time claiming this year as well, and when I see numbers like that, I am scared...lol

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Do you mean putting away every month? I think you mean $300 not $3000?

I agree with Playfelt, I roughly put away one child's fee/month.

I just did my taxes this weekend and I have to pay $1300. I was actually happy with that as I was scared that I would owe $3000!!

WoW FSD, you are on top on it!

I too, have been putting away some money each month for taxes and CPP. $250 bimonthly. My goal is to not pay over $5000 (that would be horrific!!!), and put the remainder into an rrsp, so that should help out even more for taxes next year.

Thanks guys!! Totally appreciate it