Year End Tax Statements?
I have always done weekly reciepts and advised the parents to save those. I then added them up at the end of the year and just wrote down the total they paid to each client. Last year I had a client report that they paid over $400 more than what they really paid. This will look like I am not reporting all income. Thankfully the tax preparer called me to ask for my SS# otherwise I would not have known. Is there an actual form I can print out this year instead of just writing the amount on a slip of paper? I did go and get an IN number I think it's called?
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The W-10 form is the one parents are required to give to you. I NEVER give parents a year end total. If they want to claim it, it is their job to total the receipts I give with each payment up.
I also couldn't care less what amount they claim that they paid out for child care. If it is wrong or more than they paid, I have VERY accurate records so they would be in trouble, not me, for falsifying info to the IRS. |
I do not give weekly receipts. I use minute menu and print out a W-10 from there each January for the previous year. If the parent questions the amount we can double check records, but this has never happened.
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Originally Posted by GretasLittleFriends: Most, if not all, parents do not realize that THEY are required to give their provider a W10. I'm not leaving it to chance; the burden of proof would be on me and I don't have the time or inclination to deal with the IRS. Even though my records are beyond meticulous :D |
Originally Posted by Blackcat31: |
I also use MMK and I use the childcarepay.com program for accepting online payments through it.
I do have to create an invoice in order for the childcarepay.com website to know how much is to be paid, but I don't send out a receipt ever. When they make a payment online, it shows up. I tell the parents that this is the best way to keep track of all of their payments made. Everything is in one spot. No need for me to do anything else. |
Originally Posted by PitterPatter: http://www.irs.gov/pub/irs-pdf/fw10.pdf Here is s SUPER good blog that Tom did in regards to end of the year stuff: http://www.tomcopelandblog.com/2011/...-receipts.html It should answer all your questions about whether YOU or the parent needs to supply the form, where to get one and what your legal responsibilities are for year end statements. I was surprised to learn that I am not responsible for supplying any of the info that most providers do give out. I guess the way I see it is if they want to use their payments as a deduction and benefit from it, it should be their responsibilty to keep track of it all. You are NOT their accountant and as a business owner, if we want to use anything as a deduction (mileage for example) WE have to keep track of those expenses ouselves in order to reap the benefit. The gas station does add up all our payments and give us a nice tidy total at the end of the year because it isn't their responsibilty or of any benefit to them....kwim? |
Originally Posted by Blackcat31: |
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