So, You Are Being Audited. Now what?

FINAL October 2014 Audit Seminar FlyerJust finished an article in Entrepreneur Magazine.  It is a columnist sharing his experience and *lessons learned* going through an audit.  He thought he kept good records, but discovered there is always room for improvement.

Every year I give seminars exclusively for the child care provider community through the YMCA Child Resource Services.  The entire purpose of these seminars is to give providers the best tools and tips that will help maximize their deductions, and improve their record keeping skills.This year the Audit Seminar is on Wednesday, October 22, and includes a free workbook handout of our  “Secrets to Survive an IRS Audit”. Continue reading

Starting a Child Care Business in California?

gouache setIT’S NOT JUST “BABYSITTING” OR FINGER-PAINTING

The Department of Social Services has many tools – free of charge – for the child care provider community.  This is just one of their “Do It Yourself” step-by-step articles that will guide you, or someone you know, to get started in this in-home businesses.

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10 Tips for Beginning Child Care Providers

EARLY CHILDHOOD NEWS PROVIDES LOTS OF GOOD STUFF1 Green Checkmark

Whenever we come across a site that can give our clients additional resources to help them, we are more than happy to share the information. “Early Childhood News is an online resource for Teachers and Parents of children, from infants to age 8 years. Read articles about child development, developmentally appropriate practices, health and safety, behavior and guidance, assessment and much more.

Early ChildHood News

 

Changes in Circumstances Can Affect Advanced Payments of the Premium Tax Credit

Latest Breaking News

Individuals who purchased health insurance coverage from the Health Insurance Marketplace may be getting advance payments of the premium tax credit to help pay for health insurance coverage in 2014.

If they are, it is important to report changes in circumstances, such as changes in income, marital status or family size, to the Health Insurance Marketplace when they happen.

Receiving too much or too little in advance payments of the premium tax credit can affect refunds or balance due when individuals file federal tax returns in 2015.

Reporting changes will help avoid getting a smaller refund than expected or even owing money not expected to owe.

Publication 5152, Report changes to the Marketplace as they happen, is available on www.IRS.gov/aca. Go to www.HealthCare.gov for information about health insurance coverage and financial assistance.

Source: IRS.gov Newsletter

AN EDUCATED TAXPAYER IS OUR BEST CLIENT.  NEED HELP?  CALL (619) 589-8680 TODAY!

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.

Why Do You Need Business Liability Insurance?

Homeowner Liability Insurance Will Not Protect You

Do you have business liability insurance?  Do you know why you need business liability insurance?  Because if a child gets hurt, while in your care, you may get sued by the parents if they have an issue with the actions  you took.  I read an article this morning about child care providers and the type of risks your business has.  This article was about liability insurance and what can happen when a child is injured. Continue reading

Critical IRS Deadlines in the Year 2014 – June through December

300X250 Focus Blurb AdNow is a good time for you to do a mid-year health check on your record keeping and tax status.

Give us a call at 619-589-8680 and let’s set up a time for you to come in.

June 2, 2014

Deadline for financial institutions to send out Form 5498 to report balances in an individual retirement account for the year 2013.

June 16, 2014

2nd quarter estimated tax payments due for the 2014 tax year. (The normal deadline is June 15th, which falls on a Sunday, so the deadline is pushed to the next business day.)

Deadline for US citizens living abroad to file individual tax returns and to pay any tax due. You can request an additional 4-month extension (Form 4868). (You can request an automatic extension by April 15th instead if you want to.) Two tax breaks important for Americans working abroad are the Foreign Earned Income Exclusion and the Foreign Tax Credit, .

June 30, 2014

Deadline to file Foreign Bank Account Report for the year 2013. This report is required if you have over $10,000 (in aggregate) held in foreign bank accounts. Foreign Bank Account Reports have a new form number (FinCEN Form 114) and must be filed electronically. Extensions of time to file are not available.

September 15, 2014

3rd quarter estimated tax payments due for the 2014 tax year.

Final deadline to file corporate tax returns for the year 2013 if an extension was requested. (Forms 1120, 1120A, 1120S).

Final deadline to file trust income tax returns (Form 1041) for the year 2013 if an extension was requested.

Final deadline to file partnership tax returns (Form 1065) for the year 2013 if an extension was requested.

October 1, 2014

Final deadline for self-employed persons or small employers to establish a SIMPLE-IRA for the year 2014.

October 15, 2014

Final deadline to file individual tax returns (with extension). (Forms 1040, 1040A, 1040EZ.)

Last day the IRS will accept an electronically filed tax return for the year 2013. If filing after October 15th, you’ll need to mail in your tax return for processing.

Final deadline to fund a SEP-IRA or solo 401(k) for tax year 2013 if you requested an automatic extension of time to file.

November 2014

Start planning any year-end tax moves.

December 1, 2014

If you are covered by an HSA-compatible health insurance policy as of December 1st, you’ll be eligible to contribute the full amount to a Health Savings Account for the year.

December 31, 2014

Last day to make any tax moves for the year 2014. Last day to set up a solo 401(k) for self-employed persons.

Marital status on this date determines your marital status for the whole year.

Source: Income Tax Deadlines; Critical IRS Deadlines in the Year 2014

How To Handle Custody Disputes Involving Children In Your Care

Tom Copeland Podcast: Custody Disputes

Tom Copeland has a great post on how to handle custody dispute issues that you might be confronted with.  Read the following situations, and then go to his blog see Tom’s words of advice.  How should you handle the following three situations?300X250 Focus Blurb Ad V2 Bigger Print

 

First – A mother calls you up and says, “My husband and I are starting divorce proceedings and I don’t want him to pick up our child anymore.”

Second – At the time of enrollment the mother tells you that she is separated, but not divorced, from the father. One day a man shows up at your home saying he is the father and is there to pick up his child. The child runs to him, saying “daddy, daddy!” You’ve never seen this man before.

Third – Parents have joint physical custody and the father picks up the child on Fridays. The father tells you his new girlfriend will be picking up the child next Friday. The mother finds out and says she doesn’t want girlfriends picking up her child.

 

San Diego Childcare Provider Disaster Plan and Guide

Ready San Diego Disaster Plan & Guide for Child Care Providers

In followup to yesterday’s post, Practicing For An Emergency. Are There Holes In Your Plans?  we’d like to direct you to another good source.  The County of San Diego has published a thorough planning guide specifically for child care providers.  Just go to www.readysandiego.org/childcare and download the 12-page guide.

Child Care Disaster Planning Guide for San Diego

 

 

 

http://www.readysandiego.org/childcare/

 

Practicing For An Emergency. Are There Holes In Your Plans?

*Practice Makes Perfect* and *Expect The Unexpected*

It’s true.  From playing the piano to changing a tire… there is usually a direct correlation between how often you do a task, and how well you do it.  Rehearsal.  Practice.  (I’m also convinced that is what adds to the angst taxpayers feel when April 15 comes around.  It is something most only do once a year, so it’s understandable to think, “am I doing this right?” which is why you should always use a professional tax preparer- just to be sure.)  The more often you do something, the greater the ease and confidence.

Child Care Tax Specialists

The same applies to children and your current level of preparedness for an emergency.  How often do you set aside time to rehearse the orderly steps and actions these children will need to take in an emergency when they are in your care? You want it to become automatic for them.  The weather and life-changing events that are taking place in the world make planning for emergencies a must.

Engage children by asking them to share what their “home plan” is like (in a child’s words).   If a child says they don’t know – or don’t have one … it would be a great opportunity to include the parents in the exercise.  Help them put a family plan together.  Tell them what your *plans* consist of so they will know what to do or where to go to get their children.

Recently we wrote about the FEMA children’s disaster preparedness handbook – and encourage anyone who works with children to get it – and share its information.  The workbook covers pets, and other things that are important to a child that a parent might not consider and not include. Ask a child to identify the one thing that they would want to have with them if they had to leave in an emergency.  Make note of it.  

The FEMA handbook is done in black and white glossy, and they encourage copies to be made.  If you have a copy of the handbook to give parents who haven’t made up a family emergency plan – there is a greater likelihood they will use it.

If an emergency were to take place on a field trip – TOMORROW – do  you and your children have a plan? Do the children know exactly what they need to do if accidentally separated?  Do you select a single – DISTINGUISHABLE – location and call it “home base” ? Do your parents know how you would handle an emergency situation if you were on a field trip?

When I was child, we rehearsed emergency exiting off school buses.  Row by row.  We learned how to kick out windows, how to help others that are injured.  We rehearsed it over and over again until graduation.  Why?  Because it saves lives. The workbook gives you different scenarios; earthquakes, fire, floods, tornadoes … and creative ways to educate the children in your care so they know what to do, and are less likely to panic. They get a sense of order and control in a scary situation. 

Also, *rehearse* at different times and days. Alternate morning and afternoon.  It will increase their retention because it is unexpected.  It will also let you know if there are any holes in  your plans.

 

 

 

Finished With Taxes? Not just yet.

What Should You Keep?

Med size man staring at filesNow that April 15 has come and gone – you may look at this time as an opportunity to clean up, clean out and get organized.  We will be writing about tips to freshen or set up your in-home office to help you in your recordkeeping, but before we go there… let’s talk about your tax files first and what you need to keep.

Begin by gathering all of the documents and files that you pulled together to prepare your taxes. Continue reading