Providers must decide whether to do their tax return themselves, or to get help from a professional tax preparer who has knowledge about our unique small businesses’ tax options. All providers should understand that there are many unique record keeping and tax rules for a small business offering child care. The following linked resources will provide direction as you gather tax materials for your own preparing or for your tax preparer.
Employer Identification Number – An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, including online. This is a free service offered by the Internal Revenue Service and you can get your EIN immediately.
- Do You Need an EIN?
- Do You Need a New EIN?
- How to Apply for an EIN
- How Long Will it Take to Get a Number?
- Lost or Misplaced Your EIN?
- How EINs are Assigned and Valid EIN Prefixes
- Canceling an EIN – Closing Your Account
- What to Do if You’re Assigned an EIN You Did Not Request
- Who is a Responsible Party?
- Report EIN Identity Theft
Family Child Care Provider Clearinghouse (CHCF) is a nonprofit, community-based organization. The information provided on their website is for educational and informational support of family child care providers.
- Shared Expenses/ Record Keeping and Tax Deductions
- Cash Flow and Operating Budget
- General Tax Information
- Insurance and Legal
- Savings and Banking
Estimated Taxes – Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
NOTE** If you’re covered by a high-deductible health plan, you may be eligible to make a contribution to a health savings account (HSA). These contributions reduce your gross income by the contributed amount. You can also withdraw from an HSA to pay qualified medical expenses without incurring taxes, which makes this one of the most attractive tax-management strategies.
There are limits on how much you can contribute to your health savings account (HSA).
fccamaine.com 