Search Results for: tax deductions

Any Tax Deductions for Homeschoolers This Year?

 

Are there any tax deductions for homeschoolers this year?

Carol Topp, CPA answered this question originally back in 2014, but the answer is still the same-even with the new tax laws passed in 2017. Additionally, Carol gives some details on college expenses that are tax deductible and tax advantaged college savings plans.

This is a repeat of a podcast episode aired in 2014. I (Carol) caught a nasty cold and sinus infection and couldn’t talk without coughing for several weeks. I hope you find the re-broadcast of this episode helpful!

 

In the podcast Carol mentioned these resources:

Home School Legal Defense Association has an explanation of some states’ tax breaks or credits:https://www.hslda.org/docs/nche/000010/200504150.asp

Ann Zeise of A to Z Home’s Cool has a great, detailed and lengthy post of tax write-offs for homeschoolers:
https://a2zhomeschooling.com/laws/homeschool_laws_legalities/tax_deductions_educational_writeoffs/

 

Carol Topp, CPA

 

Are violin lessons and ballet classes tax deductions?

Hi Carol, I just discovered your great website.
I pay several people for private instruction for my child: violin lessons by a private teacher, gymnastics, ballet in a nonprofit ballet school.
Can I send a 1099-MISC to any of these people or organizations?
I’d like to keep my tax liability as low as possible.
Thanks for any guidance you can provide.
Kimberly

Kimberly,

The Form 1099-MISC is to be given to a person who provide services to your trade or business. You do not give 1099-MISC to people you hire for your personal expenses (violin lessons for your children, etc).

Here’s what the IRS website says:

  • Report payments made in the course of a trade or business to a person who is not an employee or to an unincorporated business. (my emphasis added)
  • Report payments of $10 or more in gross royalties or $600 or more in rents or compensation. Report payment information to the IRS and the person or business that received the payment.

Your personal expenses (violin lessons, gymnastics, ballet) are not tax deductible expenses.

I hope that helps,

Carol Topp, CPA
HomeschoolCPA.com

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Are homeschool co-op fees childcare tax deductions?

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Carol,

A parent asked me for our tax ID number to give to her accountant for listing our tuition as a childcare expense. Is this common practice? Is it the EIN that she’s asking for? Should I give it to the accountant directly? We are 501(c)(3) state-registered corporation.

–Lisa C

 

Lisa,

The parent is asking for your EIN (Employer Identification Number), but the tuition and fees she pays to your homeschool program are (probably) not tax deductible.

IRS Pub 503 Child and Dependent Care expenses make it clear that tuition/education expenses are not child care and are not tax deductible.

Expenses to attend kindergarten or a higher grade are not expenses for care. Do not use these expenses to figure your credit.
However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care.
Summer school and tutoring programs are not for care.

If the child was in preschool at your co-op, then, maybe, the portion for the child’s preschool expenses could be childcare. By the way you may need to check your state laws to see if you are required to be licensed as a daycare.

But the child car tax deduction is only allowed for the parent to work. Was this mom going to work while her preschool daughter was at co-op? If yes, then it’s childcare; if no, then it’s not childcare and not eligible for a tax deduction.

I recommend that you not give her your EIN and explain that her tuition and fees to your homeschool organization are not child care expenses and not tax deductible.

In reality, she could find your EIN on the internet if she knew where to look, but it’s more important that you explain that tuition and fees are not tax deductible child care expenses.

Carol Topp, CPA
HomeschoolCPA.com

 

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Can you set up homeschooling as a business and get tax deductions?

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Hi Carol,

I have been involved in financial planning for 25 years and own my business. My question is concerning tax deductions that could be available for homeschooling. What are some of the possibilities?

I would assume that a person could set up a home school as a business but that would involve certain steps; what are they?  Would tax deductions be allowed if the business was not profitable or only set up to teach their own children?  Can expenses for things like mileage, activities, food, lodging or associated training expenses count as a deduction?
Thank you.

Jim B

 

Jim,

I have been asked questions similar to yours several times.

Here’s a blog post discussing tax deductions for homeschooling expenses:
https://homeschoolcpa.com/any-tax-breaks-for-homeschoolers/

Some homeschool groups (not individual families) set up a nonprofit organization and receive 501(c)(3) or 510(c)(7) tax exempt status from the IRS. But tax exempt status is only available to an organization, not to individual families.

Tax deductions are not allowed for expenses of teaching your own children. They are considered personal expenses, like food or clothing.

You would not be successful in setting up a business to homeschool your own children because you do not have  a trade; you would have no paying customers. There would be no revenue and the IRS would disallow the expenses because they are  personal expenses, not legitimate business deductions.

So, sorry Jim, but your assumptions were wrong.

Carol Topp, CPA
HomeschoolCPA.com

 

Stuck inside doing your taxes?

Are you stuck inside because of illness, social distancing, or the corona virus?
Well, it’s a good time to work on your tax return!
(Not what you wanted to hear, I’m sure!)


I hear from lots of CC Directors and tutors about their taxes. It can be confusing running a business, paying tutors, etc.

If you’re confused about takes, I have a book for you!

I am pleased and proud to announce my latest book, Taxes for Homeschool Business Owners!
Read more here.

I have spoken and emailed with so many CC Directors, tutors and teachers at homeschool programs that are confused about their taxes. This is my attempt to keep you out of trouble with the IRS!

This ebook is a great resource for:

  • Tutors or teachers for a homeschool program paid as an Independent Contractor
  • Classical Conversations(R) Directors
  • CC tutors
  • Coaches, musicians, artists, etc. hired to teach at a homeschool co-op


The ebook is 60 pages long and contains information on

  • Business Start Up
  • LLC status
  • Tax Deductions
  • Tax Forms
  • Sample Tax Returns
  • Self Employment Tax
  • Paying Yourself
  • Paying Others
  • Businesses Using Churches
  • Should My Homeschool Program Be a Nonprofit?

I hope you find the ebook and the webinar helpful this tax season!

Only two more days to get Taxes for Homeschool Business Owners for free

Taxes for running your tutoring business, homeschool business or CC Community can be so confusing!  I have a book that can help.

Taxes for Homeschool Business Owners

Over 700 tutors, directors and teachers have downloaded the ebook so far. Here’s what they say:

Thank you so much for the tax resources you put out there, it’s been super helpful for me as a director of our CC Homeschool campus! -Jessica

As we do our taxes this year I am thankful for your knowledge and being willing to share it. I GUARANTEE many women WEREN’T doing their taxes correctly. -Julie

This ebook is a great resource for:

  • Coaches, musicians, artists, etc. hired to teach at a homeschool program
  • Tutors or teachers for a homeschool program paid as an Independent Contractor
  • Classical Conversations®Directors
  • CC tutors

The ebook was FREE in January 2020. Now the ebook is available for $10.

The ebook is 60 pages long and contains information on

Business Start Up including LLC status
Tax Deductions and Tax Forms
Sample Tax Returns
Self Employment Tax
Paying Yourself and Paying Others
Businesses Using Churches
Should My Homeschool Program Be a Nonprofit?

I hope you find the ebook helpful!

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Taxes for Homeschool Business Owners ebook

I am pleased and proud to announce my latest book, Taxes for Homeschool Business Owners!
Read more here.


I wrote this book because I have spoken and emailed with so many homeschool business owners that are confused about their taxes. This is my attempt to keep you put of trouble with the IRS!

Thank you so much for the tax resources you put out there, it’s been super helpful for me as a director of our CC Homeschool campus! -Jessica


The ebook is 60 pages long and contains information on

  • Business Start Up
  • LLC status
  • Tax Deductions
  • Tax Forms
  • Sample Tax Returns
  • Self Employment Tax
  • Paying Yourself
  • Paying Others
  • Businesses Using Churches
  • Should My Homeschool Program Be a Nonprofit?

This ebook is a great resource for:

  • Tutors or teachers for a homeschool program paid as an Independent Contractor
  • Classical Conversations(R) Directors
  • CC tutors
  • Coaches, musicians, artists, etc. hired to teach at a homeschool co-op

As we do our taxes this year I am thankful for your knowledge and being willing to share it. I GUARANTEE many women WEREN’T doing their taxes correctly. -Julie


Please do not share the ebook file with other people or post the ebook file on the internet. If you know someone who would be helped by the book, please send them to this page and they can purchase their own copy.
Share this link: HomeschoolCPA.com/TAXESHSBIZ


I hope you find the ebook helpful this tax season!

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Taxes for Homeschool Business Owners

Are you a tutor, teacher or director of a homeschool business? Especially a business providing services to homeschooling families.

Have I got a book for you!

This ebook is a great resource for:

  • Tutors or teachers for a homeschool program paid as an Independent Contractor
  • Classical Conversations(R) Directors
  • CC tutors
  • Coaches, musicians, artists, etc. hired to teach at a homeschool co-op

Thank you so much for the tax resources you put out there, it’s been super helpful for me as a director of our CC Homeschool campus! -Jessica

The ebook is 60 pages long and contains information on

  • Business Start Up
  • LLC status
  • Tax Deductions
  • Tax Forms
  • Sample Tax Returns
  • Self Employment Tax
  • Paying Yourself
  • Paying Others
  • Businesses Using Churches
  • Should My Homeschool Program Be a Nonprofit?

As we do our taxes this year I am thankful for your knowledge and being willing to share it. I GUARANTEE many women WEREN’T doing their taxes correctly. -Julie

The author is Carol Topp, CPA, an accountant and a retired homeschooling mother. She is the author of Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out, The IRS and Your Homeschool Organization, Money Management in a Homeschool Organization, Paying Workers in a Homeschool Organization and Taxes for Licensed Classical Conversations® Directors.

 

FAQ

What else do you have to explain my taxes?

I have a webinar on the details of preparing a tax return called “Tax Prep for Homeschool Business Owners.” I think it will be very helpful (in addition to the ebook). The cost to view the 90 minute webinar is $10.  Purchase the Tax Prep Webinar for $10

Purchase the Tax Prep Webinar for $10

Is the book similar to the Taxes for Licensed Classical Conversations (CC) Directors® ebook?

In early 2018 I wrote an ebook for CC Directors that was mentioned in the CC Directors Licensing Guide (DLG). That ebook was only available to licensed CC Directors via Classical Conversation’s® web portal. Many people found it difficult to locate the ebook in the CC DLG or they were unaware that it existed. This ebook is not limited to only CC Directors.

Additionally, the IRS made massive changes to the tax code and forms for the 2019 tax season (2018 returns). The CC ebook mentioned these changes, but some details and the forms had not yet been released when the book was written. This ebook explains the new forms and tax code changes.

This ebook also includes information on taxes for CC tutors (not just the Directors), teachers at homeschool programs, or anyone offering services to the homeschool market. These situations are not addressed in the Taxes for Licensed Classical Conversations® Directors ebook.

It’s only 60 pages. What do you NOT cover?

This is for service-based businesses such as teaching, tutoring, directing or managing in the homeschool marketplace. I do not cover selling products (books, curriculum, etc), state taxes, or sales tax. If you are a bookseller or carry inventory, the book will still be helpful, but you’ll need professional help to understand inventory management and sales tax reporting.
This ebook does not address taxes for partnerships or corporations. Their tax situations are complex and beyond the scope of the ebook.

Can I pass the ebook along to a friend?

No, you may not share the ebook. Do not email the file to another person. Do not store the file on a cloud-based shared file system. Do not share it on social media. You are in violation of my copyright if you pass this ebook along to another person.

What to CAN do is post and share the link to the ebook so other people can request their own copy. Thanks for doing that!

Share this link: HomeschoolCPA.com/TAXESHSBIZ

Will you do my taxes?

No, sorry. I no longer prepare individual tax returns. I focus on writing, podcasting, webinars and  consultations with homeschool business owners and nonprofit organizations.

You can find a local tax preparer from these sources:

Both of these websites allow you to search for a local tax preparer who is knowledgeable about taxes for small sole proprietor businesses. Look for the Enrolled Agent (EA) or Certified Public Accountant (CPA) designation.

Oh, you do business consultations! How much?

Yes, I like talking to homeschool nonprofit leaders and homeschool business owners (I’m one myself). I charge $100/hour for business consultations and a discounted rate for nonprofits of $85/hour. We can do a phone call or Zoom meeting (video chat).

Contact me if you’d like a business consultation.

 

Carol Topp, CPA

Helping homeschool leaders

Are my homeschool co-op fees a tax deductible donation?

I’m a homeschool parent and member of a homeschool co-operative that weeks weekly. I have to pay tuition to this group for the classes my children take there. Can my children’s tuition for the co-op be a tax deduction?

 

I assume you mean deductible as a charitable donation.

Co-op fees are not a tax deductible charitable donation because services (co-op classes for your children) were received in return for the tuition payments. Tuition payments are not a tax deductible donations.They are personal expenses and are not tax deductible.

But if a parent makes a charitable gift to the homeschool group (assuming it has 501c3 tax exempt status from the IRS) above and beyond the tuition and fee payments, then this amount would be a tax deductible donation.

Some homeschool parents ask if co-op fees can be deducted as childcare expenses. My reply is “usually not” and here are the details: Are homeschool co-op fees child care tax deductions?

 


Did you get paid for teaching at a homeschool program? You may have questions about your taxes? I offer webinar to help you understand the tax implications of being a paid homeschool co-op teacher or tutor:

I recorded a webinar on Tax Preparation for Homeschool Business Owners. It should be a lot of help to tutors, non-employee co-op teachers and other homeschool business owners! You can watch the recording at HomeschoolCPA.com/HSBIZTAXES for a small fee of $10.

Carol, thank you again for the webinar. It was one of the BEST webinars I’ve EVER attended. If you do hold another one, I would pay for it hands down. Totally worth the $10! -Denise, webinar attendee

“I actually don’t care for webinars at all – it is not my learning style at all and I struggle to focus, but this one was extremely value and had my attention”. -Mary, webinar attendee


I hope that helps!

Carol Topp, CPA

HomeschoolCPA.com

Helping homeschool leaders

Taxes for Homeschool Business Owners

 

Taxes! 2018 tax returns will be better rough with massive tax law changes and the new look for the Form 1040. Tax preparation for homeschool business owners is even more complex than regular taxpayers. Fortunately, HomeschoolCPA is here to help. I’m offering a free, live webinar.

Taxes for Homeschool Business Owners Webinar

Free live on Monday January 21, 2019 at 8 pm ET. Webinar replay: $10.

HomeschoolCPA.com/HSBIZTAXES

This webinar is for:

  • Paid teachers at a homeschool co-op
  • CC tutors getting paid as Independent Contractors
  • CC directors running a community
  • Music teachers, tutors, coaches, etc. running their own businesses
  • Business owners selling services to the homeschool marketplace

Here’s what the webinar will cover:

  • Tax changes for 2018 (highlights)
  • New tax deduction for businesses in 2018!
  • The new redesigned IRS Form 1040
  • How to pay yourself
  • Tax deductions common to homeschool business owners
  • IRS tax forms Schedule C and SE
  • Self-employment tax
  • A sample tax return.

This webinar will not cover:

  • Nonprofit organizations, but if you work as an Independent Contractor for a nonprofit, this webinar is for you.
  • Businesses organized as partnerships or corporations. I won’t have time to go into these more complex tax structures.
  • Businesses selling products like homeschool curriculum or ebooks

The webinar will be FREE for all who register and attend live. It will be free for about 24 hours after the webinar to all who register. After that, a small fee of $10 will be charged for viewing the webinar video.

 

In the podcast Carol mentioned …

Taxes for Homeschool Business Owners Webinar

Free live on Monday January 21, 2019 at 8 pm ET

Webinar reply: $10.

HomeschoolCPA.com/HSBIZTAXES

 

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