Good Morning, LYork,
That's OK, I have no problem with the school name and implication.
No doubt, it all just helps the state keep track of home schools for
their own records.
Let's think a little about dealing with the tax implications, ok?
First, I would set up a bank account just for the 'Academy.'
Let's establish this as your business.
Put out a flyer to advertise? Personally, I wouldn't, unless you
want several children (10 or more). Since whoever you bring in
needs to spend much of the day with you and your child, I'd talk
to people personally in your community or religious circles
and screen them with your child. (You want this to be a good
experience, not a threatening one for him? her?
Have your child help you with the final decision.)
Though, for the purposes of your tax file, it doesn't hurt to
have a flyer to prove your business intent.
You'll be using a Schedule C with your tax return, to report
the income, expenses, and office in home deductions.
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
Frankly, one reason that other commenter's suggestion about
taking on additional students was a good one, is because doing
that does let you move all your deductions to Schedule C.
As itemized deductions on Schedule A, you lose a lot of the
value, because you can't deduct the first 2% of your Adjusted
Gross Income (AGI= the last line on page 1 of the tax return).
Meaning, if your incomes are at least $60,000 you lose the
benefit of at least $1,200 of your expenses.
On Schedule C, you can deduct them all.
You'll be able to deduct food for your students, at 100%,
not 50% as with business meals (you would put a -0- on
line 24c). Just do your grocery shopping for your Academy
from the business checkbook.
You'll be able to deduct a portion of the utilities, housecleaning,
household repairs and maintenance (See the instructions for the
Form 8829 http://www.irs.gov/pub/irs-pdf/i8829.pdf ).
You will be able to deduct all specific repairs, modifications, etc.
to the parts of the house, room that are specifically related to
your teaching needs.
Naturally, all of your books, supplies, teaching aids, videos,
audio tapes. If you take 'field trips' with the children, they're
deductible. Just make sure you have the children actually write
up something they've learned from each one.
http://www.irs.gov/formspubs/page/0,,id=11531,00.html
You'll be able to deduct the 'business' use of your car.
Just track all your costs (insurance, gasoline, repairs,
car washes, service, etc) and the end of the year, decide
whether to use mileage or actual expenses.
http://www.irs.gov/formspubs/page/0,,id%3D11514,00.html
There are two books you might want to look at for more detail
about business expenses. One is a general book for women in
business, by Jan Zobel, it's under $10 at Amazon.
http://www.amazon.com/exec/obidos/ASIN/1580622003/
If I were writing a comprehensive tax book, it would be
much like this.
The other book a little more costly, about $25.00, by Brigette
Thompson, is about record keeping for daycare.
http://www.amazon.com/exec/obidos/tg/detail/-/0967088615/
She actually provides you with forms you can photocopy and
use to track expenses, deductions and student billing, etc.
I'm not sure, but there may even be forms to track student
information (educational, etc.?).
I could sit here for hours and tell you more.
But you really need to do some reading and assimilate the
information a little at a time. It can be overwhelming, to
start with. But becomes second nature once you've got it
under control.
You're going to have so much fun with this. Your child is so lucky!
Best wishes,
Your TaxMama-ga |
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