Inspirational and Empowering Child Care Business Owners To Build Successful Child Care Businesses

Posts tagged ‘Taxes’

Finish Strong Series Day 8: Get Organized For Your Taxes

Filing your Business taxes is a Big chore every year!

I know because I’ve been filing my own taxes for the last 16 years as a Business Owner.

In fact, I have found that when you are organized with your record keeping throughout the year; it makes it easier for you when it is time to file your taxes.


If you enter all of your income & expenses into a computerized accounting program; you have already made it easier on yourself.

However, if your record keeping is manual and in written form, you have a ton of work to do to get ready for the upcoming tax season.

Here is a strategy that has worked for me and it helps me to organized my receipts in categories. Create a folder for items that you can claim on your tax return, including:

  • Classroom materials and equipment
  • Gas
  • Employee incentives and events
  • Business Events
  • Professional Development
  • Food for the Children
  • Your Lunch Receipts
  • Massage and Medical appointments
  • Car or Van Expenses
  • Marketing Expenses
  • Office Supplies
  • Building maintenance or home repairs
  • Utilities
  • Cell phone bills (must be used for Business)

For more Tax preparation tips, Check out this blog post to get some record keeping ideas for 2016, click here.

I want to hear from you, be sure to share your thoughts and feedback with me about this blog series by posting on the Child Care Business Owner facebook page or tweeting me @ccarebusiness. Be sure to use hashtag #Finishstrong2015

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Your Coach,


Issuing Tax Statements To Parents

At the end of every year, I begin to prepare childcare totals for each family. Then in January, I send home a statement for each family that indicates the amount of childcare expenses paid to me for the previous calendar year. In fact, I believe it is vital that you issue  childcare tax statements in a timely manner (preferably by January 31st), so that parents can file their child care expenses on their tax return. A tax statement does not have to be a fancy document. However, it must contain the following information for tax purposes:

  • The name of your Business
  • Your Business phone number, Address, City State and Zip Code
  • Your Tax Id Number or Social Security Number
  • The Name of the child that you provided care for
  • The Amount Paid to you for childcare services
  • Be sure to sign the document

If you do not have a Tax ID number, you may want to consider applying for one to issue to parents for tax purposes.  As you are in the process of preparing statement, be sure to issue a parent letter  or post a notice that indicates when tax statements will be issued. If you do not have a Parent Tax Statement form to issue to parents, I have created one for you—>  Click here (Be sure to change the tax year on the form)

I wish you Continued Success!


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