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Flex - I guess it depends on how much you make. Our teacher said that as a provider you can earn up to around 25K a year and probably not pay taxes. If someone is making 50-60K then I am sure that is a whole different story. I have never even earned to 25K with the daycare because I operate under capacity so it is different. So far I haven't had to pay. This year I took on another full timer which will bring my income up quite a bit and I am thinking of adding another so I will probably be crying April 2013.
I guess if someone has 5 full time kids then they can probably expect to pay
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You will always have to pay something towards your Canada Pension on self employed earnings. But for those with hubbies that complain remind them that they paid into the same plan all year and you got to hold onto your money all year so in the end it balances out. But yes I pay and hubby gets back. Have never paid more than about $800 including my CPP. Just as your hubby has taxes taken out of his paycheck every month, you should set aside an amount every month and yes taking one of the incomes from one child should be more than enough and then what isn't used from that child's income becomes your tax refund. Think about it - at $150 a week for the child x 50 weeks is $7500.00. If you owe even $2500 for taxes and CPP that is still a tax refund of $5000 to you and if you had been putting those monthly payments into an interest bearing option such as a TSFA then you will have more than the refund.
For hubbies that complain remind them to look at their paystubs and the total they actually made and the smaller amount they got to keep each month and how they have to wait till tax time to get any overpayment back whereas you get to keep ALL of your money and only give the government a dab of it come tax time.
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Starting to feel at home...
I will be putting $ aside each month for the first time this year.
I'm totally stressing out about how much I will owe this year .
The first year I owed nothing, the second year I was closed for a few months so I owed just a bit but this year...
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First thing to realize is that you take your total income and deduct your expenses for operating your daycare and the amount that is left is the amount your taxes are based on - not the total you earned. So if you earned $35,000 but had expenses of $15,000 which is possible by the time you do business use of home, food, toys, equipment etc. then you will only be taxed on $20,000 of income. Since one of the first thing you deduct is your basic personal exemption line 300 which is $10,527. You can see how your taxable income can very quickly go down.
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Playfelt: what is this $10, 527 on line 300? Basic Personal exemption? Why? How? Everyone gets this?
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Euphoric !
Originally Posted by FlexFunCare
Playfelt: what is this $10, 527 on line 300? Basic Personal exemption? Why? How? Everyone gets this?
Yes - everyone gets this .... the first $10,527 we earn is 'tax free' anything more than that is what we all pay tax on .... employed or self employed ... this is the challenge with some people who work several 'part time' jobs - their employer does not take income tax off assuming that they are going to earn less than $11,000 however between the several jobs they earn 'more' than this and get nailed
Being self employed - if you can get your income down to $10, 527 you would not owe anything in 'taxes' just your CPP contribution which everyone has to pay -however this is where some people get a refund cause even though they have to pay the CPP their 'tax credits' are more than they 'owed' and they still get a refund despite not having paid anything all year long!
Children construct their own intelligence. The adult must provide activities and context, but most of all must be able to listen. Children need proof that adults believe in them. Their three great desires are to be listened to, to understand, and to demonstrate that they are exactly what we expect."
Loris Malaguzzi
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