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... |
Originally Posted by Unregistered: |
Just an FYI: Not all unlicensed daycares are illegal. :rolleyes:
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. |
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 :eek: 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. |
Originally Posted by Catherder: |
Originally Posted by Meyou: Sorry.... back on topic. |
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 |
Originally Posted by Meyou: |
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. |
unlicensed
Originally Posted by Unregistered: |
Originally Posted by TomCopeland: ive run across your website when looking up info . just wanted to say thank you for the clear concise year end receipt page- i honestly thought i was going nuts until i ran into your page. question though: ive filed a schedule C way back when for a paper delivery route i once had, now ive moved on to in home daycare. ive never filed a form 8829. what would go on this form? just mortgage/home insurance expenses or would trash/gas/electricity expenses go on this form? thank you. |
Form 8829
Originally Posted by Unregistered: |
Illegal/Unlicensed and Not Paying Taxes
This was my former daycare person. She was watching way more than the legal amount of children. Cash only, refused to give her SS# and was not paying taxes. We recently fired her and I am debating if I should report her of if I would get hit as well for not claiming what we paid to her the past nine years. Full disclosure, this person has been watching kids from her home for 15 years and not paying taxes. What should I do? Look the other way?
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Originally Posted by Unregistered: |
Originally Posted by hwichlaz: |
Originally Posted by Unregistered: Also in the meantime, browse his blogs for for other information that may help you. |
unlicensed
Originally Posted by Unregistered: |
Originally Posted by Unregistered: |
Originally Posted by LostMyMarbles: As a provider, I think she should be turned in, even though he maybe doing it out of spite and the other families are going to be left with out care. Either way, she is out of ratio and should be reported. He could just report her to the IRS, Tom has a blog about how, and then she wouldn't be shut down right away but get audited instead. |
If you are illegally unlicensed, what happens if someone tries to claim with child care tax credits?
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Originally Posted by Unregistered: |
Originally Posted by Blackcat31: |
Originally Posted by Unregistered: |
Originally Posted by Unregistered: That is pretty risky considering the fine for operating illegally in CA is up to $200 PER day PER child and could be a felony charge. :eek: :ouch: If a parent, neighbor or anyone withi this info reports you, you could be facing enormous legal issues as CA is one of the strictest states in prosecuting illegal care providers. https://www.berkeleyparentsnetwork.o...ed%20operation. I went and did a bit of reading on the IRS site and apparently if you are operating illegally and caring for more than 6 children, it sounds like the parent won't be able to claim their expenses and if they try to the IRS would be alerted. I am not 100% positive as reading the IRS site is as easy as reading a upside down and backwards but bottom line is you could end up in some really big legal trouble. I'd research getting licensed and start the process. The faster you become legal the less trouble you might face. |
unlicensed
Originally Posted by Blackcat31: |
Originally Posted by Blackcat31: |
Originally Posted by Unregistered: |
Here is the direct contact info. Sorry, it took me a minute to find it for you. Don't be scared. They will help. likethis
https://rrnetwork.org/assets/general...April_2019.pdf |
Originally Posted by Cat Herder: |
Originally Posted by Unregistered: Programs that operate for less than 4 hours and only have kids over 5 are not even required to be licensed, here. They just have to pass a fire/occupancy inspection from the county. Their ratio is 30/2. I think you will be just fine. likethis Now, I kindof want cheetos.... :p |
Originally Posted by Cat Herder: |
Originally Posted by Unregistered: Mine says "not more than four consecutive hours per day", so technically it could be before and after, 4 hours each. |
Originally Posted by Cat Herder: |
Originally Posted by Unregistered: Also, I just peeked at my update and I see what you are sayng. This is new verbiage here, too. :eek: "operate for no more than one session of up to four (4) consecutive hours per day and which limit attendance to no more than eight (8) hours a week per child." It came with a new grouping called "Support Centers" that I have not read yet. I bet many folks will be calling for help, not just you. :hug::hug: |
Originally Posted by Cat Herder: |
Originally Posted by Unregistered: http://ccld.ca.gov/res/pdf/License-ExemptChildCare.pdf |
Originally Posted by Cat Herder: |
Originally Posted by Unregistered: |
Unlicensed
Originally Posted by Unregistered: |
Why is that?
I think is the best preschool in Utah that represents how diligent caregivers are in giving of themselves regardless of how parents perceive things and parents do not always know how many children can and cannot be in a daycare. preschool in Utah has a small number of children so each child gets plenty of attention. As you have learned, it is always best to just contact the provider with any concerns you may have. daycare in UT have the best providers who are always willing to address any concerns you may have.
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Originally Posted by yellowstreetlamps: |
Originally Posted by aminat: |
Originally Posted by aminat: |
Can I claim daycare expenses?
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?
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unlicensed provider
Originally Posted by Chris: |
Would that mean she HAS to claim the money as well?
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Originally Posted by Chris: |
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