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Thread: Tax question

  1. #1
    Shy
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    Question Tax question

    So this will be my first year doing daycare taxes.. I started last April.
    So far I have had 5 families come and go for various reasons.
    Out of those families I know of two that will definetly be claiming their daycare expenses as they had asked for receipts( I made them out receipts each month.)

    One family said they didn't need receipts.
    One family didnt ask for receipts
    And one family skipped out on me with out paying me so I will not be writing them a receipt at all!

    So my question is what do I do? Not really too sure.?

    Also, I have kept all my receipts for grocery stuff.
    I have also kept gas receipts.how to I log my info for driving in my car with the kids and to the store for groceries. I go once a week for daycare food.

    I have also bought quite a bit of stuff for the daycare toys ect from garage sales and thrift stores, along with my own things that are now used for the daycare. How do I go about charging this stuff out. Or can I just make out receipts to myself for the cost if the things.??

    It's all very confusing, I just don't want to end up paying an arm and a leg in taxes and have gotten myself quite worked up over this lol

  2. #2
    Euphoric ! mimi's Avatar
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    first I would claim ALL income whether you issued receipts or not. Secondly, go to the Canada Revenue website and search home based businesses and specifically details as to what you can claim for your daycare. As for purchases from garage sales etc, if you didn't get the home owner to sign (with their address info) for your purchase, then I would make up a receipt for the purchases making it clear this is YOUR estimation of the amount of dollars spent and specifically name the items purchased. The CRA loves details and honesty so give them both.

    Every year I have my taxes done by an accountant (for about $150.00) so then I know I am claiming everything allowed, not missing anything and this allows me to sleep at night without fear of an audit as I have done everything on the up and up. Some providers do their taxes themselves which is fine, but I just prefer an informed second opinion because I need it. LOL

  3. #3
    Euphoric !
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    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.
    Last edited by mickyc; 12-28-2013 at 05:21 PM.

  4. #4
    Outgoing
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    I usually have my taxes by h&r ....would prefer not to go to them as they have messed it up!!! Can anyone recommend an accountant in the area of east scarborouigh/pickering/ajax area?

  5. #5
    Euphoric !
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    Oh H&R....I hear your frustrations! I went to them for years with no problem but then moved to a different city and had issues with the local branch over a few things. One being I caught a mistake by them and if I'm catching it than I know they aren't doing their job LOL (math is def not my strong point!!) I totaled all my stuff for my own curiousity and expected H&R to tally it as well....but nope!! She took my numbers but entered them wrong! Also gave me wrong info. When you are paying $300+, I expect more and I definitely expect them to make sure my numbers are right!! I ended up complaining to head office and both mine and my fiance's tax fee's were returned.

    I lucked out and found a retired accountant who does it in her free time for a small amount of clients and she doesn't charge an arm and a leg. I total all my receipts and bills and she places them in the right areas for me. She is also available year round for me to email her with any questions. If your comfortable with that maybe you could place a kijiji add looking for someone? She charges 75% less than H&R but doesn't make sure my numbers are correct....for the significant lesser fee, I am totally okay adding up my own receipts!! (I triple check them anyways lol)

  6. #6
    Euphoric !
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    It is illegal not to claim all of your income, whether you issued reciepts or not. Parents can still claim the expense without a reciept too. Definitely claim everything you earned. And if any parent asks you for reciepts, you will need to issue them.

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