Today TaxMama® hears from sh1207 in the TaxQuips Forum with this question. “In 2011, my wife started a home-run Montessori school in October. We spent about $2,000 in setting up the Montessori (supplies, furniture, license, etc.). We only got $600 in income from one child, who was with us for 3 hrs a day starting October. Can we deduct these expenses and the utilities?”

Today TaxMama® hears from Trina in the Tax Quips Forum who wasn’t an employee. “I started working for a newspaper company over the summer of 2011, delivering papers to homes using my own vehicle. The company did give me company checks, but they did not take any taxes out. I believe they called their employees “independent contractors.” How do I file my taxes, since there has not been anything taken out?”

Today TaxMama® hears from Josh in the TaxQuips Forum with a complex question about reimbursement plans. So, TaxMama wants to explain the overall concept.

Today TaxMama hears from Matt in the Tax Quips Forum, who has the right idea. “I have started a side business doing yard work. I am trying to determine the best way to save to pay my taxes. I have a checking account that is just for the side business. I deposit all the money I am paid for yard work directly into this account. I also use only this account to pay for fuel, repairs, equipment, etc. (business expenses). I need to use some money from my business for personal expenses. I plan to write myself a check from the business checking account, and then deposit that into my personal checking. I also plan to take 25% of the check I write to myself and put it in a savings account that is just for my taxes. Should I being doing this, or do I have to set aside 25% of everything I deposit into the business checking account into a savings account for taxes?”