Unlicensed and Taxes

[emosks]

Last year I started babysitting for a few friends with my best friend. All of a sudden we had 5 additional children other than our own. I was in the process of starting to get licensed to do it right (we're in MI) and a parent turned us in for being unlicensed after she and I had a spat. Lovely...I had DHS on my doorstep a week before Christmas. Anyway...

My question is that I plan on claiming what I made on my taxes. I have receipts for food bought for snacks and lunches. What else can I claim? Utility bills? Laptop? I plan on getting the book that was recommended in another post but wanted to see what all you do.

Do you do taxes yourself? Or an accountant?

[mac60]

You have to figure out time/space percentage, I would use the standard deduction for meals and snacks instead of receipts, you can claim a % of utilities, your supplies that you use. I use a tax preparer.

[momofsix]

So sorry about your rotten parent turning you in, hope it turns out all right. In MI, since you can not do any care w/out being licensed you can not use the business use of your home deductions, but I think you can deduct the rest of your expenses. I always use turbo-tax, and have loved it.

[originalkat]

According to the Family Childcare Record Keeping Guide...

On page 87 of the above book this is what it says about your question:
If you are not licensed and your state requires you to be, you can claim all expenses except the following:
Mortgage Loan Interest
Real Estate Taxes
House Insurance
House Repairs/maintenance
utilities
House Rent
Casualty losses
House Depreciation
Home Improvements
Land Improvements

You can still claim food (I recommend using the standard deduction), supplies, toys, vehicle expenses etc...

You do need to figure out your Time/Space percentage. It tells you how to do it in the book. Or the program Minute Menu Kids does it for you after you input the info into the program.

I am doing my own taxes. This year I may use Turbo Tax. Do you have to buy a new one every year?

[momofsix]

You do need to buy a new turbo-tax each year, but once you put in all your info the first time it is saved and automatically updates to the new one each year when you install.

[originalkat]

Thanks!

Thanks for the info!

[emosks]

Thanks for the info...I have a lot of work ahead of me!!