Before signing your tax return and sending it to the IRS, use this checklist to spot potential mistakes on your IRS Form 8829 Expenses for Business Use of Your Home.
[ ] Line 1: Is the number on this line less than line 2? If so, it means you didn't use all the rooms in your home on a regular basis for your business. Is this true? You can use a room as regular use if you use it two-three times per week for business purposes.
If you didn't use all your rooms regularly for your business, be sure that you have included all possible areas on lines 1 and 2, including your porch, detached garage, and deck. Don't count outdoor space such as a back yard or patio.
[ ] Line 5: If you were not in business for all of 2013, cross out the number typed on this line (8,760) and enter the number of hours there were in that part of the year you were in business.
For example, if you started your business on April 1, 2013, there were 6,600 hours (275 days x 24 hours each day) in the year between April 1st and December 31st. Enter 6,600 on line 5. Then only enter your house expenses that you incurred after April 1st on this form.
Childcareinfo.com is a community for family child care providers and parents that offers a wide variety of resources including recipes, a blog, and a newsletter. It serves as a clearing house for many online resources (children's activities, training opportunities, equipment, and more).
Childcareinfo.com was created by Minute Menu to offer free assistance that will help the family child care community grow.
Tom Copeland - www.tomcopelandblog.com
Image credit: www.wibc.com
For more information about how to correctly fill out Form 8829, see my 2013 Family Child Care Tax Workbook and Organizer, available January 15th from Redleaf Press.