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  1. #1
    Senior Canuck terrarankin's Avatar
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    does anyone know how i fill out the form T2125 (i started doing home daycare last year and i have no idea what the % i can claim in each catagory, how much per day for food allowance, etc.
    i really dont want to have to pay someone when this is the only 1 form i cant do myself!
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    I buy the quick tax and it calculates the percentages for me. As for the food the kids eat, I claim $5.00 per day per child.

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    Senior Canuck terrarankin's Avatar
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    Quote Originally Posted by mckie0514 View Post
    I buy the quick tax and it calculates the percentages for me. As for the food the kids eat, I claim $5.00 per day per child.
    i just downloaded stuidotax but i dont think it calculates it....
    and i heard in ontario you only get to claim $2.50 per day per child for food....
    thank you though for replying!

  4. #4
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    I run a daycare I took a percentage of my food amount. ie. 3 out of 5 meals in a day are for daycare so out of 35 meals in a week, 15 are for daycare so 43%. At least this is how I did mine, it could be wrong but I haven't had a problem yet. Everything else (utilities, insurance, interest etc.) quick tax figures out for me.

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    I think I'll start using Quick Tax, because it sounds like it's pretty good for working out expense amounts and deductions. I definitely need to use something better than my current software. Thanks for the tip.

    my daycare furniture

  6. #6
    Senior Canuck reese&rorysmom's Avatar
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    I do my food the old fashioned way. I circle all the food I buy for daycare on every grocery reciept and add it all up at the end of the year.

  7. #7
    Smart Canuck albertamommie's Avatar
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    Quote Originally Posted by reese&rorysmom View Post
    I do my food the old fashioned way. I circle all the food I buy for daycare on every grocery reciept and add it all up at the end of the year.
    Im starting a dayhome in the next week or two and i was wondering some of the same things.

    Could a person do their shopping separate? Like buy only day home food and non day home food?

    How much should one set aside for tax time or will I have enough write offs?

  8. #8
    Senior Canuck reese&rorysmom's Avatar
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    Quote Originally Posted by albertamommie View Post
    Im starting a dayhome in the next week or two and i was wondering some of the same things.

    Could a person do their shopping separate? Like buy only day home food and non day home food?

    How much should one set aside for tax time or will I have enough write offs?
    I do all my shopping together but then circle the items that are used for feeding the daycare children. There are too many things that are used for both our family and daycare so, for example, I will circle every third tub of margerine I buy and 3/4 of the bread etc. to how I feel the ratio's of family to daycare consumption.

    As for income tax, that all depends on how much you earn and how many deductions you have.

    I'm not shy about numbers so I'll lay mine out for you.

    I made $27,000 gross last year from dayhome income (plus the $2400/yr. - Harper's Hundred)

    I use 90% of my house, 5 days a week, 50 weeks a year, for 10 hours a day. Plug that into their little expenses equation get's you the magic number that you use to determine the percentage of home expenses you can use (There is a pamphlet/booklet published by Revenue Canada that outlines these details...I'll find the link and post it tomorrow.)

    So, anyways, that magic number get's used against mortgage interest (THE only time I'm happy that we have the mother of all mortgages and are at the beginning of our term so the interest is huge for a write off), power, water, gas, and house insurance.

    We get Zone B Northern living here, as should you but since we're self employed there's no box 32 on our T4 for travel within (or maybe out of) our prescribed zone (two trips annually for a write off which we don't get..boo hoo)

    Plus groceries, cost of toys, craft materials some office supplies etc.

    My tax owing is usually around $1500. Not bad for nearly $30,000 annual income

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    My wife has a tax specialist do our taxes for us just for this reason. Too much misinformation out there. There is not need to separate your food bills or add them up separately at the end of the year. You can claim an amount per day per child.She started off at 5.00 per day a few years ago and now with increases in costs we are up to 8.00 per kid per day.

  10. #10
    CaLoonie Jentay's Avatar
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    Hey guys, Im a chartered accountant and have 6 years experience, i cannot stress enough, if you arn't sure - pay someone to do them! I have some personal clients who i have filed adjustments for as far back as possible because they were filing their returns without knowing what deductions they could claim. On guy i got $20000 back over three years of adjustments. Its not cut and dry, black and white, so dont cheap out and try to find someone who will do your taxes - you can find people relatively cheap on sites like kijiji or local ads...

  11. #11
    Senior Canuck reese&rorysmom's Avatar
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    I have a great accountant

    I always do it myself for 'fun' before I take all my stuff to her and the way I work it out I owe thousands and thousands....after she's all done, $1500. Best several hundred dollars I spend annually

  12. #12
    Canadian Genius avoncallingu's Avatar
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    I would get the guide for that particular form and/or phone Canada Revenue. Sometimes it takes a little hunting but you can usually get the information outlined online.
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    It seems everyone is recommending Turbotax as the best software as it does the calculations for you. What version do I need to buy for home daycare business? I only had two children.

    I've been using Studio tax in the past which is free and awesome for normal returns, but this is first year doing with Childcare.

    I know all of the expenses I can deduct, hence why not wanting to spend extra for someone else to do.
    Would they really find that much more given their extra cost? What do others normally pay someone? Unless it's someone fudging numbers, how much more could they save me given I only have two children so income is around 15,000 a year.

    Thanks for any advice!

  14. #14
    Smart Canuck ahatt's Avatar
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    It's really easy if you use Quicktax/TurboTax (software or online). I'm also self-employed (but I also have a full-time job too, so taxes are complicated for me), and you just input the amount of income you made with your business. Then when you get to the part for business-use of home expenses, you can enter how much you paid (total amounts) for heat, hydro, utilities, mortgage interest, etc. Then it will ask for the square footage of your home, and also a reasonable amount of square footage that your business uses. So say for example if your home is 2000 square feet, and the majority of the time you do your daycare in the basement of your home which as an example is 400 square feet. Then quicktax will automatically calculate the percentage of your utilities and expenses that you can write off against your business to reduce the amount of taxes you have to pay.

    I believe you can also write off other expenses related to your business, like the cost of food and snacks for your daycare kids, etc.

    Anyways, I found TurboTax really easy to use if you're self-employed. I was just on it today and entered all my expenses for my self-employment business. It walks you through everything for your business, and calculates it all for you.
    Quote Originally Posted by terrarankin View Post
    does anyone know how i fill out the form T2125 (i started doing home daycare last year and i have no idea what the % i can claim in each catagory, how much per day for food allowance, etc.
    i really dont want to have to pay someone when this is the only 1 form i cant do myself!
    Join Swagbucks and earn points for searching, surveys and more!



  15. #15
    Smart Canuck ahatt's Avatar
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    You would need the Home & Business version of Turbotax if you're self employed.

    I'm not sure how much more Turbotax will find that you can claim that Studiotax doesn't.

    To compare, last year we had an accountant do our taxes and he charges $75 per return. So it cost $150 for both my and my DH's tax return.

    I haven't personally used studiotax, so I can't really compare it to Turbotax. I also have a self-employed business, and I have found Turbotax really easy to use, and it walks you through all the expenses you can claim for your daycare business. You can write off expenses for business use of home, which Turbotax also will tell you what expenses you can claim.
    Quote Originally Posted by sixer6 View Post
    It seems everyone is recommending Turbotax as the best software as it does the calculations for you. What version do I need to buy for home daycare business? I only had two children.

    I've been using Studio tax in the past which is free and awesome for normal returns, but this is first year doing with Childcare.

    I know all of the expenses I can deduct, hence why not wanting to spend extra for someone else to do.
    Would they really find that much more given their extra cost? What do others normally pay someone? Unless it's someone fudging numbers, how much more could they save me given I only have two children so income is around 15,000 a year.

    Thanks for any advice!
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