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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 01-27-2012, 06:22 AM
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Default Unlicensed/Illegal Daycare And Taxes

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...
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Old 01-27-2012, 07:53 AM
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Originally Posted by Unregistered View Post
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.
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Old 01-27-2012, 07:59 AM
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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.
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Old 01-27-2012, 08:00 AM
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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.
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Old 01-27-2012, 08:05 AM
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Originally Posted by Catherder View Post
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.
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Old 01-27-2012, 08:07 AM
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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.... 6 is all I can have even with a CDA and hoops.

Sorry.... back on topic.
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Old 01-27-2012, 03:27 PM
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Default child care tax credit/illegal care

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
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Old 01-02-2014, 12:22 PM
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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?
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Old 01-02-2014, 05:08 PM
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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.
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Old 01-03-2014, 01:40 PM
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Default unlicensed

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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.
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