Daycare.com Forum
Daycare and Taxes>Unlicensed/Illegal Daycare And Taxes
Unregistered 06:22 AM 01-27-2012
So I have a silly question. If a parent takes their kid to an unlicensed/illegal (operating with more than one family) "daycare", do they get to claim the money they paid for daycare on their taxes?
Just curious...
Just curious...
Blackcat31 07:53 AM 01-27-2012
Originally Posted by Unregistered:
So I have a silly question. If a parent takes their kid to an unlicensed/illegal (operating with more than one family) "daycare", do they get to claim the money they paid for daycare on their taxes?
Just curious...
Absolutely! Doesn't matter who you paid money to. If you paid out, you can claim it.So I have a silly question. If a parent takes their kid to an unlicensed/illegal (operating with more than one family) "daycare", do they get to claim the money they paid for daycare on their taxes?
Just curious...
Daycaremomof2 07:59 AM 01-27-2012
Just an FYI: Not all unlicensed daycares are illegal. 
You can fill out a W10 form and give it to your provider to sign. They need to put their ss #, name, and address on it, and you can file with that.
You can fill out a W10 form and give it to your provider to sign. They need to put their ss #, name, and address on it, and you can file with that.
Ac114 09:20 AM 11-14-2019
Originally Posted by aminat:
A daycare business requires licensing of facilities and people. As a home-based childcare provider, you may be able to watch one or two children without a license but after that, you may have to be a licensed provider.
Actually in my state you can have up to 6 children under the age of 6, no more than 2 being under the age of 2 before needing a license. But rarely do they even look into. Our state is flooded with license exempt providers and many of them being over ratio. ��A daycare business requires licensing of facilities and people. As a home-based childcare provider, you may be able to watch one or two children without a license but after that, you may have to be a licensed provider.
Blackcat31 09:41 AM 11-14-2019
Originally Posted by aminat:
A daycare business requires licensing of facilities and people. As a home-based childcare provider, you may be able to watch one or two children without a license but after that, you may have to be a licensed provider.
What state are you in?A daycare business requires licensing of facilities and people. As a home-based childcare provider, you may be able to watch one or two children without a license but after that, you may have to be a licensed provider.
Chris 08:51 AM 01-07-2020
I send my 2 kids to a daycare provider who is not licensed. She cares for less than 6 children. I live in Michigan. Can I claim this amt?
TomCopeland 08:01 AM 01-08-2020
Originally Posted by Chris:
I send my 2 kids to a daycare provider who is not licensed. She cares for less than 6 children. I live in Michigan. Can I claim this amt?
Yes. You can claim the child care tax credit. You want to get her Social Security number.I send my 2 kids to a daycare provider who is not licensed. She cares for less than 6 children. I live in Michigan. Can I claim this amt?
Cat Herder 08:00 AM 01-27-2012
First, There is a difference is LEGALLY unlicensed and ILLEGAL daycare. Apples and Bananas.
Here you can have 2 kids from two families without registering with the State.
In some States it is 5
ALL daycare providers MUST claim the income...no LEGAL exceptions.
IMHO, Any parents willing to use illegal daycare, under the table pay, are just as guilty as the provider.
Here you can have 2 kids from two families without registering with the State.
In some States it is 5
ALL daycare providers MUST claim the income...no LEGAL exceptions.
IMHO, Any parents willing to use illegal daycare, under the table pay, are just as guilty as the provider.
Meyou 08:05 AM 01-27-2012
Originally Posted by Catherder:
First, There is a difference is LEGALLY unlicensed and ILLEGAL daycare. Apples and Bananas.
Here you can have 2 kids from two families without registering with the State.
In some States it is 5
ALL daycare providers MUST claim the income...no LEGAL exceptions.
IMHO, Any parent willing to use illegal daycare, under the table pay, are just as guilty as the provider.
Correct. I can have 6 children other than my own without a license. I still claim my income and my parents claim what they pay me.First, There is a difference is LEGALLY unlicensed and ILLEGAL daycare. Apples and Bananas.
Here you can have 2 kids from two families without registering with the State.
In some States it is 5
ALL daycare providers MUST claim the income...no LEGAL exceptions.
IMHO, Any parent willing to use illegal daycare, under the table pay, are just as guilty as the provider.
Cat Herder 08:07 AM 01-27-2012
Originally Posted by Meyou:
Correct. I can have 6 children other than my own without a license. I still claim my income and my parents claim what they pay me.
I am still soooo jealous of you.... Correct. I can have 6 children other than my own without a license. I still claim my income and my parents claim what they pay me.
6 is all I can have even with a CDA and hoops. 
Sorry.... back on topic.
TomCopeland 03:27 PM 01-27-2012
The rule here is a little tricky. If a parent uses a child care provider who cares for less than six children, then the parent can claim the child care tax credit, whether or not the provider is operating illegally under state law.
If the provider is caring for six or more children, then the parent may not claim the child care tax credit unless the provider is licensed, or exempt from licensing, according to their state law.
Join me for my webinar "2011 Family Child Care Tax Update: How to Reduce Your Taxes" on February 9th, 8:30-10:00pm Eastern time: http://events.r20.constantcontact.co...&llr=yatrx4cab
If the provider is caring for six or more children, then the parent may not claim the child care tax credit unless the provider is licensed, or exempt from licensing, according to their state law.
Join me for my webinar "2011 Family Child Care Tax Update: How to Reduce Your Taxes" on February 9th, 8:30-10:00pm Eastern time: http://events.r20.constantcontact.co...&llr=yatrx4cab
Unregistered 12:22 PM 01-02-2014
Originally Posted by Meyou:
Correct. I can have 6 children other than my own without a license. I still claim my income and my parents claim what they pay me.
what form do you file if your are unlicensed?Correct. I can have 6 children other than my own without a license. I still claim my income and my parents claim what they pay me.
Punkin.Butts 05:08 PM 01-02-2014
I am unlisc. but operating legally.
In MO your allowed to have 4 unrelated (to me) children total without a lisc.
It can be from 4 different families if you want.
My children, neices, nephews, and grandchildren do NOT count in that 4. I can have As many of them as i can handle on top of the 4 unrelated children.
I file all the exact same documents as a liscensed provider or care center would.
In MO your allowed to have 4 unrelated (to me) children total without a lisc.
It can be from 4 different families if you want.
My children, neices, nephews, and grandchildren do NOT count in that 4. I can have As many of them as i can handle on top of the 4 unrelated children.
I file all the exact same documents as a liscensed provider or care center would.
TomCopeland 01:40 PM 01-03-2014
Originally Posted by Unregistered:
what form do you file if your are unlicensed?
You file the same tax forms whether you are licensed or not. Use Schedule C for your income and expenses. Use Form 8829 for your house expenses.what form do you file if your are unlicensed?
TomCopeland 09:42 AM 08-21-2019
Originally Posted by Unregistered:
what form do you file if your are unlicensed?
File Schedule C. If you are legally unlicensed you can also claim house expenses on Form 8829. If you are operating illegally you can't claim any house expenses (those shown on Form 8829).what form do you file if your are unlicensed?