OVERVIEW
Tax season is upon us! And it’s the time of year where we all wish we had been on top of tracking our receipts!
In this weeks blog post we are going over some tips and resources to help you get organized for submitting your dayhome taxes.
Whether you plan to do your own taxes or hire a professional – there are some simple tasks you can complete to help make this tax season a breeze.
Getting Prepared
Gather Receipts
- Find all of the receipts for items you've purchased throughout the year
- Collect all of your utility bills, mortgage statements, etc
- Print any credit card statements for cards used for dayhome expenses
DIVIDE EXPENSES INTO CATEGORIES
- Go through each expense and determine the correct category (food, supplies, etc).
- Input the expense information accordingly
- Print any credit card statements for cards used for dayhome expenses
TAX TIP
TOTAL UP YOUR INCOME
- Tally up all income recevied from dayhome activities (even if a receipt was not provided to parents)
- Don't forget to include deposits not yet returned
- Print any credit card statements for cards used for dayhome expenses
determine business use of home calculation
- Calculate the square footage of your home that is used for dayhome - as well as the total square footage of your home
- If your dayhome space is integrated with your family's living space, write down how many days per week you are open, as well as the number of hours per day
- Print any credit card statements for cards used for dayhome expenses
TAX TIP
DECIDE IF YOU'LL TACKLE YOUR TAXES ON YOUR OWN OR HIRE A PROFESSIONAL
- If you feel that you can accurately capture all of the deductions available to you as a self-employed individual - you may want to tackle your income tax return on your own
- If you're feeling like you might need a bit of extra help - check out our list of trusted accountants inside the Embolden PDC Portal.
TRUSTED ACCOUNTANT OF EMBOLDEN PDC:
TAX TIP
For next year
SET ASIDE FUNDS TO HELP MAKE TAX PAYMENTS MORE MANAGEABLE
- Consider setting aside 15-20% of your monthly income to help pay your income taxes at the end of the year.
SORT EACH MONTH
- Grab yourself an accordian folder from the dollar store and create tabs for each expense category. Each month organize your receipts into the correct category to help keep you on top of things
Resources
Check out these helpful resources below for a stress free tax season. Income tax returns for the self employed are due June 15.
LIVE Tax Training Session - February 1 @ 7PM
There are only a couple of tickets left for our LIVE Tax Training Session coming up next week. This highly anticipated session is a must do for any dayhome provider. CPA Kathy Jo Matthews will go over all of the top questions dayhome providers have about filing their income taxes.
Canada Revenue Agency (CRA)
Daycare in your home. This is were you can find information on how to report your income, claim expenses and issue receipts.
Tax Training 2021
Join CPA Kathy Jo Matthews for an informative hour all about dayhome taxes.
We’ll discuss tracking revenue & expenses, how to stay organized, when to file, and MORE.
Tax Cheatsheet (FREE)
Not sure which expenses you can claim or how the calculation works for figuring what portion of your utilities can be claimed? Check out this tax cheatsheet!
Get started today,
Mirriah
