Your Taxes and Your Toronto Home Daycare Service

Here at torontoaccountant.ca we are capable of helping you get all the tax breaks you qualify for with your daycare services.

Running a home daycare service is something that many individuals will consider as a way of earning income. Many new Moms that want to stay at home with their own little ones will sometimes decide to take on the responsibility of looking after other working Moms’ children. It can really turn out to be a win-win situation for everyone, but there are tax implications to this.

What starts out with providing daycare for one extra youngster can soon grow into a home business. Word of mouth spreads that you are in the business of providing daycare, and before you know it you have all the children that you can handle. The income that you can glean from this type of home service can really add up to the point where you now have to take a close look at your tax returns. It has basically put you into a self employed category which means a whole different approach to your tax matters. This is the ideal time to consider the services of a Toronto accountant who can help not only do your final tax returns, but guide you as to the proper way of setting up your financial records so they comply with the CRA demands.

One of the mistakes that many individuals fall into when providing home daycare services is they do not claim the additional income they are making. When it comes to the end of the year many of the parents that the service is being provided for will ask for a daycare receipt for their tax returns. This now means that the CRA has a record of these transactions. You as the daycare provider must claim this income. This sort of takes the joy of making all this extra income away, but with the right bookkeeping methods in place, and a reliable Toronto tax accountant, you can still make your home daycare business a very lucrative one.

You will discover that there are several expenses that you can use to offset the money you are making in respect to the tax that you will have to pay on it. These will be determined by your particular circumstances and these can be quite complex to try and figure out. There are other aspects that have to be considered as well especially if you have other income. You may have to look at the tax bracket this extra daycare income is pushing you into.

Small businesses such as daycare services vary and they demand the attention of a Toronto accountant that is willing to go the extra steps to ensure that you are going to get all the tax breaks you can. As a professional in the accounting industry I make it my business to see to that your business is tax compliant and that you are getting the tax credits applicable to you.