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4 Family Child Care Tax Companion
Hire the Best Person
Once you have narrowed your list to the professionals who have the credentials you are
looking for and who understand the special rules that apply to your business, it’s time to
choose the best person. In making this decision, consider the following questions:
• Is the tax professional available all year or only during the tax season? Does the
preparer do tax planning for the upcoming year? A tax professional who is in busi-
ness year-round and who does tax planning will probably be able to offer you better
service. • What does the tax professional charge? Is the fee based on a flat amount per return, a
charge per form, or an hourly rate? Some tax professionals will quote a range for the
fee before looking at your particular situation. Be sure to ask up front about all the
fees. • Is the tax professional willing to provide references from other clients who are fam-
ily child care providers? Ask the clients if the tax professional returned their calls
promptly, was easy to work with, and answered all their questions.
• Do you and the tax professional share a similar philosophy about taxes? If you are
very conservative in claiming deductions, look for a professional who understands
this and will follow your wishes. If you are more assertive in claiming deductions,
look for someone who is comfortable with this approach.
• Do you feel comfortable with the tax professional? Is the person easy to reach and to
talk with?
Working with Your Tax Professional
When you choose a tax professional, show her the Tax Organizer in part 2 of this book.
Some tax professionals have their own tax worksheets or organizers that they like
their clients to use. The advantage of the organizer in this book is that it is specifically
designed for family child care providers, and your tax professional will probably find it
helpful. Before you fill it out, however, show it to her and find out if she has any con-
cerns about using it. Also ask her for a list of the other information and records that she
will need from you. For example, your tax professional is likely to ask for the following:
• •
• •
• a copy of your last tax return
any estimated tax payments you made this year
any Form 1099s you received
any W-2 forms you or your spouse received
any other income you received
The next step is to fill out the Tax Organizer and send it to your tax professional. The
information in this section is organized by tax form to make it easy for you to fill out
and convenient for your tax professional to use. The notes and checklists will help alert
both you and your tax professional to the special rules that apply to family child care, so
you can both ensure that your taxes are accurate and take advantage of all the deductions
you are entitled to claim.
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