Tax question

[mickyc]

Yes claim ALL income no matter if you gave out a receipt or not.

My suggestion to you is to get a good accountant. There are so many things you can claim I would make sure it is right! My accountant charges $400 for me and my husband (and I claim it as a deduction as well). Things I give my accountant (not sure exact amount he puts as a deduction) - percentage of interest on mortgage, house insurance, household repairs, any large items bought for home (fridge, stove, computer, furniture). You can claim a portion of your heat, electricity, water, internet, TV. If you have a designated area for daycare (myself it is my basement so 50% of my home is strictly daycare) then you get to claim 50% of household bills. If you use your whole home for both daycare and living you calculate the percentage based on how many hours in a week and how many hours are daycare etc. For your phone you can claim 0 for home phone but 100% for cell phone.

You can also claim a portion of your vehicle expenses - gas (I have a log book on how many km's I drive), repairs, interest on loan. There is deductions for food, toys, office supplies, art supplies, advertising costs, daycare supplies (playpens/high chairs etc). I also have a cleaner come in 2x a month that I claim.

My first year I had deductions that I could carry over to the 2nd year. This is my 3rd year and it was the first time I actually had to pay. I also pay into Employment Insurance every year as well. That amount is calculated at income tax time as well. It works out to me paying $80-$100 a month towards income tax, CPP and EI.

I get everything totaled and organized and give it to my accountant every year.