Author Archives: Pat Michael

Childcare Provider Workshop January 23 San Diego

 CHILDCARE PROVIDER WORKSHOP ON TAX & RECORDKEEPING

On January 23rd there will be a tax & recordkeeping workshop in San Diego and is a must-attend for individuals who run their own childcare business. You will learn how to save thousands of dollars by proper recordkeeping practices and techniques.  This workshop is packed with information you NEED to know!  The location is the YMCA Child Resource Service at 3333 Camino Del Rio South suite 400 San Diego, CA (Mission Valley).  Call 619-521-3055 to register.  The YMCA charges a $15.00 fee.  It’s well worth it! Continue reading

Tips for Child Care Providers Communicating with Parents

Tips for Child Care Providers to Communicate with Parents Concerns about Children’s Development

We have brought you these Tips for Child Care Providers from eXtension,  “an interactive learning environment delivering the best, most researched knowledge from the best land-grant university minds across America”. This is one of their articles that you might find helpful when speaking with parents. Continue reading

Checklist of Deductible Supplies

Deductible SuppliesChild Care Provider Checklist of Deductible Supplies

Checklists make life easier.  Lists that are for your specific business are even better. Use our Checklist of Deductible Supplies to make your life a little easier – and it’s in word or PDF format.

If you use it in word, you can customize it with your business logo and print out one for each month.  Take 12 plain manila. straight-edge, file folders, make one for each month (for example,  January 2015 Deductible Supplies, February 2015 Deductible Supplies, and so on).  At the end of the year, you have a handy record of all your related purchases and corresponding receipts in one folder.  Make sure you check back for checklists for the kitchen and repairs & maintenance.

Click on the image below and it will download a word document that you can customize to your specifications.  For a PDF version, click HERE.

Checklist of Deductible Children's Supplies

 

IRS FORMS   Exclusive Use Rule   POLICIES  & PROCEDURES   Checklists, Mail & Mileage Logs   IMPORTANT TAX DATES   Articles & Books   GLOSSARY OF TERMS   Childcare Provider  BLOG   US-TaxLaws.com BLOG  Crime Prevention and Emergency Handbook
Home Fire Safety Self-Inspection Checklist   TAX INTERVIEW CHECKLIST
Child care provider medical safety checklist   Provider Meal and Snack Log
The Baby Name Wizard

For more than 30 years R. Patrick Michael has prepared tax returns for individuals, small businesses, cottage industries and in-home child care providers. Pat is a recognized child care provider tax expert, and gives educational seminars for child care providers in San Diego County for the YMCA Child Resource Services, and he has been doing this for more than 18 years.  Pat and his team have built a following of long-term clients, family/generational clients, new meets and word-of-mouth referrals. Child Care Tax Specialists take care of their clients year-round with tax preparation, business entity creation and support, as well as tax planning for retirement, and estate planning.

NEED HELP?  CALL (619) 589-8680 TODAY!

 

Recordkeeping Health Check For Your Business

E-Book on RecordkeepingTHE SEVEN RULES OF GOOD RECORDKEEPING

I. Track income from each parent and the Child and Adult care Food Program.

II. Save the receipts for all business and personal purchases.

III. Mark what each item is on the receipt.

IV. Organize receipts by category, not month.

V. Keep track of how much time – each week – you use your home for business.

VI. Conduct a regular review (at least monthly) of your records.

VII. After filing your tax return, keep your records in a safe place for at least 7 years.

Use our e-book *Recordkeeping and Taxes* to help give you ideas.  What little time you have for administrative tasks needs to be as efficient as possible.  That means getting filing done, setting up new files, and keeping mileage logs up to date.  Receipts, don’t forget receipts.  File them by subject.


For more than 30 years R. Patrick Michael has been preparing tax returns for individuals, small businesses, cottage industries and in-home child care providers. Pat is a recognized child care provider tax expert, and has been providing educational seminars for child care providers in San Diego County for the YMCA Child Resource Services for more than 18 years.  Pat and his team have built a following that is comprised of long-term clients, new relationships and word-of-mouth referrals. Child Care Tax Specialists take care of their clients year-round with tax preparation, business entity creation and support, as well as tax planning for retirement, and estate planning.

IRS FORMS   Exclusive Use Rule   POLICIES  & PROCEDURES   Checklists, Mail & Mileage Logs   IMPORTANT TAX DATES   Articles & Books   GLOSSARY OF TERMS   Childcare Provider  BLOG   US-TaxLaws.com BLOG  Crime Prevention and Emergency Handbook
Home Fire Safety Self-Inspection Checklist   TAX INTERVIEW CHECKLIST
Child care provider medical safety checklist   Provider Meal and Snack Log
The Baby Name Wizard, CHILD CARE GUIDE on RECORDKEEPING and TAXES

NEED HELP?  CALL (619) 589-8680 TODAY!

The Child Tax Credit

Child Tax Credit and The LawTop Six Things You Should Know about The Child Tax Credit

The Child Tax Credit may save you money at tax-time if you have a qualified child. Here are six things you should know about the credit.

  1. Amount. The Child Tax Credit may help reduce your federal income tax by up to $1,000 for each qualifying child that you are eligible to claim on your tax return.
  2. Additional Child Tax Credit. If you qualify and get less than the full Child Tax Credit, you could receive a refund even if you owe no tax with the Additional Child Tax Credit.
  3. Qualifications. For this credit, a qualifying child must pass several tests:
    Age test. The child must have been under age 17 at the end of 2014.
    Relationship test. The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, or stepsister. The child may be a descendant of any of these individuals. A qualifying child could also include your grandchild, niece or nephew. You would always treat an adopted child as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
    Support test. The child must not have provided more than half of their own support for the year.
    Dependent test. The child must be a dependent that you claim on your federal tax return.
    Joint return test. The child cannot file a joint return for the year, unless the only reason they are filing is to claim a refund.
    Citizenship test. The child must be a U.S. citizen, a U.S. national or a U.S. resident alien.
    Residence test. In most cases, the child must have lived with you for more than half of 2014.
  1. Limitations. The Child Tax Credit is subject to income limitations. The limits may reduce or eliminate your credit depending on your filing status and income.

5.Schedule 8812. If you qualify to claim the Child Tax Credit, make sure to check whether you must complete and attach Schedule 8812, Child Tax Credit, with your tax return. For example, if you claim a credit for a child with an Individual Taxpayer Identification Number, you must complete Part I of Schedule 8812. If you qualify to claim the Additional Child Tax Credit, you must complete and attach Schedule 8812. Visit IRS.gov to view, download or print IRS tax forms anytime.

  1. IRS E-file. Electronic filing is the best way to file your tax return. IRS E-file is the safe, accurate and easiest way to file. If you use IRS Free File, you can prepare and e-file your taxes for free. Go to IRS.gov/filing and review your options.

You can use the Interactive Tax Assistant tool on IRS.gov to see if you can claim the credit.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tips or any of our e-news subscriptions.

Additional IRS Resources:

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Scariest Tax Errors – Forbes

CAUTION Audit Alert SignIf you aren’t using a professional tax preparer – you might want to reconsider that decision after reading this post and the articles it links to.  If you needed a reason why you would want to use a professional tax preparer – this is just what you need. If  you know someone who needs a little convincing – send a link to this post.

Let’s start with a great article in Forbes that begins, “Before you file your taxes, consider how long you must look over your shoulder.” (That’s sort of chilling, don’t you think?) They add that tax lawyers and accountants are used to monitoring the duration of their clients’ audit exposure – and so should you.  (Now really … is that something you want to do – or wouldn’t you prefer a tax professional who knows how the IRS functions?)  Here’s the article “The Scariest Tax Errors, They Extend IRS Audits To Six Years Or Endlessly.”

Compound the above with the fact that the Commissioner of the IRS publicly thanked tax preparers for “surviving a very challenging tax season“, and if he thought the season was *challenging* it’s not because it’s easy.   Safe to say the tax code is not going to get easier – so unless you have nerves of steel, do yourself a favor and research professional preparers and go talk to them.


IRS FORMS   Exclusive Use Rule   POLICIES  & PROCEDURES   Checklists, Mail & Mileage Logs   IMPORTANT TAX DATES   Articles & Books   GLOSSARY OF TERMS   Childcare Provider  BLOG   US-TaxLaws.com BLOG  Crime Prevention and Emergency Handbook
Home Fire Safety Self-Inspection Checklist   TAX INTERVIEW CHECKLIST
Child care provider medical safety checklist   Provider Meal and Snack Log
The Baby Name Wizard

 

What’s the “Cost of Cash” to Small Business Owners?

Pause ButtonDEBIT CARD? CREDIT CARD? CASH?

“Some small business owners are intimidated by the thought of accepting credit and debit card payments. And that’s understandable- with the prospect of paying fees, plus the cost of acquiring new point of sale terminals, electronic payments can seem daunting.” (SCORE ). They made some really good points, such as: Continue reading

Tax Advantages You Need to Keep In Mind

Small CCP teaching children

 

ChildCareTaxSpecialists.com  (CCTS) is always looking for informative content to help you with your in-home business.  The fact that your business of child care has the greatest opportunity to maximize deductions for your home business, makes it all the more important.

[CCTS Says: before you start to read, you might want to take a look at our FREE GUIDE The World of Child Care Providers Taxes & Recordkeeping.  You will also want to check out our FREE checklists and templates for keeping records. All of our documents are free, downloadable and toner friendly.  Just click here.] Continue reading