Daycare.com Forum

Go Back   Daycare.com Forum > Main Category > Daycare Center and Family Home Forum

Daycare Center and Family Home Forum Daycare Center and Family Home owners, Directors, Operators and Assistants should post and ask questions here.

Reply
 
Thread Tools Display Modes
  #1  
Old 03-06-2018, 10:29 AM
Country Kids's Avatar
Country Kids Country Kids is offline
Nature Lover
 
Join Date: Mar 2011
Posts: 5,024
Default State Taxes Requiring Paperwork For Cash Payments

Is anyone else's state requiring extra paper work from you for clients that pay with cash?

I guess our state is mailing out forms that we need to fill out and return but only for clients pay their bills with cash.

Haven't received one yet but sounds like it's not fun! I saw a provider ask if anyone is charging the clients for the extra work because it takes awhile to fill out.
__________________
Each day is a fresh start
Never look back on regrets
Live life to the fullest
We only get one shot at this!!
Reply With Quote
  #2  
Old 03-06-2018, 10:37 AM
daycarediva's Avatar
daycarediva daycarediva is online now
Daycare.com Member
 
Join Date: Jul 2012
Posts: 11,106
Default

For subsidy copays?

If not, the state has NO business in my cash payments. I would say no.
Reply With Quote
  #3  
Old 03-06-2018, 10:41 AM
Country Kids's Avatar
Country Kids Country Kids is offline
Nature Lover
 
Join Date: Mar 2011
Posts: 5,024
Default

This is for your state taxes you pay.

So anyone that pays you cash-state or private pay, my state not sure about others are now double checking records is my understanding.
__________________
Each day is a fresh start
Never look back on regrets
Live life to the fullest
We only get one shot at this!!
Reply With Quote
  #4  
Old 03-06-2018, 10:47 AM
daycarediva's Avatar
daycarediva daycarediva is online now
Daycare.com Member
 
Join Date: Jul 2012
Posts: 11,106
Default

That's frigging nuts.

How are they going to keep records of this? It will just make people say "what cash?"
Reply With Quote
  #5  
Old 03-06-2018, 10:49 AM
Country Kids's Avatar
Country Kids Country Kids is offline
Nature Lover
 
Join Date: Mar 2011
Posts: 5,024
Default

Quote:
Originally Posted by daycarediva View Post
That's frigging nuts.

How are they going to keep records of this? It will just make people say "what cash?"
Hopefully you will have receipts of the payments they made. I know I have an option on my program to hit cash payment and then the amount.

When I do a print out for parents at the end of the year it shows if payments were by check or cash.

I'm just dreading the paperwork it sounds like we have to do to show we were paid.
__________________
Each day is a fresh start
Never look back on regrets
Live life to the fullest
We only get one shot at this!!
Reply With Quote
  #6  
Old 03-06-2018, 11:32 AM
Blackcat31's Avatar
Blackcat31 Blackcat31 is offline
 
Join Date: Oct 2010
Posts: 16,413
Default

Who is asking for this info?
Your state, licensing or the IRS?

Iíve never heard of such a thing...

I have parents that sometimes pay in cash and of course I claim all my income but the parent that pays in cash also gets a receipt so they can prove payment/expense on their end.

Iíve never been asked by anyone to provide proof of cash payments.
Reply With Quote
  #7  
Old 03-06-2018, 11:41 AM
Country Kids's Avatar
Country Kids Country Kids is offline
Nature Lover
 
Join Date: Mar 2011
Posts: 5,024
Default

Quote:
Originally Posted by Blackcat31 View Post
Who is asking for this info?
Your state, licensing or the IRS?

Iíve never heard of such a thing...

I have parents that sometimes pay in cash and of course I claim all my income but the parent that pays in cash also gets a receipt so they can prove payment/expense on their end.

Iíve never been asked by anyone to provide proof of cash payments.

From what I'm understanding it's not the IRS but the State portion of our taxes.

Maybe in a bit I will see pop over to the tax area and see if Tom can answer why they are doing this.
__________________
Each day is a fresh start
Never look back on regrets
Live life to the fullest
We only get one shot at this!!
Reply With Quote
  #8  
Old 03-06-2018, 11:51 AM
Blackcat31's Avatar
Blackcat31 Blackcat31 is offline
 
Join Date: Oct 2010
Posts: 16,413
Default

Quote:
Originally Posted by Country Kids View Post
From what I'm understanding it's not the IRS but the State portion of our taxes.

Maybe in a bit I will see pop over to the tax area and see if Tom can answer why they are doing this.
If itís your state he may not know...

Iíd pop back over to the site you saw it posted on and ask provider who posted for more details

I would not fill anything out unless itís accompanied by the law showing where it says Iím required to do so or unless itís part of an audit.

Iíve been asked to verify cash payments for a family that was being audited but they brought me a form to fill out that was provided to them. The family says the audit is because of some changes to the child tax credit ()
Wonder if that is what the provider that posted is talking about.
Reply With Quote
  #9  
Old 03-06-2018, 12:29 PM
Country Kids's Avatar
Country Kids Country Kids is offline
Nature Lover
 
Join Date: Mar 2011
Posts: 5,024
Default

Quote:
Originally Posted by Blackcat31 View Post
If itís your state he may not know...

Iíd pop back over to the site you saw it posted on and ask provider who posted for more details

I would not fill anything out unless itís accompanied by the law showing where it says Iím required to do so or unless itís part of an audit.

Iíve been asked to verify cash payments for a family that was being audited but they brought me a form to fill out that was provided to them. The family says the audit is because of some changes to the child tax credit ()
Wonder if that is what the provider that posted is talking about.
I have had to fill one of those out also (last fall) and it doesn't sound like that is what they are talking about. It seems to only be for clients who have paid cash.

One of my clients even was told by her tax preparer that so many childcares are getting "audited" this year by the State tax area. Her preparer said it has been a pain and causing lots of confusion.
__________________
Each day is a fresh start
Never look back on regrets
Live life to the fullest
We only get one shot at this!!
Reply With Quote
  #10  
Old 03-06-2018, 12:37 PM
storybookending's Avatar
storybookending storybookending is online now
Daycare.com Member
 
Join Date: Jan 2017
Posts: 1,084
Default

I have never heard of this. I have one family that pays exclusively in cash and then the others might occasionally, like one or two weeks out of the whole year. I just keep track and report all income. The guy that does my taxes has never even asked how I am paid. Just for a total payments received. He doesnít even care what family paid what amounts, just my end of the year total combined.
Reply With Quote
  #11  
Old 03-07-2018, 10:10 AM
tenderhearts's Avatar
tenderhearts tenderhearts is online now
Daycare.com Senior Member
 
Join Date: Jan 2010
Location: HI
Posts: 1,208
Default

I had a family for the first time last year need information for I believe the childcare credit. I can't remember the form from the state but it didn't have anything to do with cash payments but I had to send in dates child was enrolled (which they still were), their rate, usual times in care and copies of all payments, it was ridiculous. I called the state and they said they are "randomly" selected. In all my 20 yrs of this NEVER had to do anything like that. Then this year another family brought this to me, she said they have been "selected" at least 3 yrs from my understanding, however, she had a form this time and only had me fill that out, it did say on there that I had to send payments log but she said they never did that before and it wasn't questioned so I didn't.
I'm in Oregon, it's a total pain and I think it's ridiculous the state has providers fill all that out, I already give them an end of year statement.
Reply With Quote
  #12  
Old 03-07-2018, 10:37 AM
Country Kids's Avatar
Country Kids Country Kids is offline
Nature Lover
 
Join Date: Mar 2011
Posts: 5,024
Default

Quote:
Originally Posted by tenderhearts View Post
I had a family for the first time last year need information for I believe the childcare credit. I can't remember the form from the state but it didn't have anything to do with cash payments but I had to send in dates child was enrolled (which they still were), their rate, usual times in care and copies of all payments, it was ridiculous. I called the state and they said they are "randomly" selected. In all my 20 yrs of this NEVER had to do anything like that. Then this year another family brought this to me, she said they have been "selected" at least 3 yrs from my understanding, however, she had a form this time and only had me fill that out, it did say on there that I had to send payments log but she said they never did that before and it wasn't questioned so I didn't.
I'm in Oregon, it's a total pain and I think it's ridiculous the state has providers fill all that out, I already give them an end of year statement.
Yes, same state and I can't tell you the number of providers having to do this, this year. There is a facebook site for providers across the state and that is how I found out about it! It only seems to be from parents that are paying cash.

I had a client last fall need one filled out for 2016 Luckily I had everything at the touch of a button but she said they have been flagged and they could be for like 5 years They were also a cash paying client.
__________________
Each day is a fresh start
Never look back on regrets
Live life to the fullest
We only get one shot at this!!
Reply With Quote
  #13  
Old 03-07-2018, 01:25 PM
hwichlaz's Avatar
hwichlaz hwichlaz is online now
Daycare.com Member
 
Join Date: May 2013
Location: California
Posts: 1,668
Default

It sounds like the person posting that is being audited to me. And that you should make sure to keep good books so that you can show your record of cash receipts if you get audited, which we should all do anyway.
Reply With Quote
  #14  
Old 03-07-2018, 01:27 PM
hwichlaz's Avatar
hwichlaz hwichlaz is online now
Daycare.com Member
 
Join Date: May 2013
Location: California
Posts: 1,668
Default

Ohhhhh, so itís the PARENTS that need the proof. That makes more sense. They are bearing extra scrutiny for some reason, maybe a red flag in their tax return, and the state wants to be sure of their deductions.
Reply With Quote
  #15  
Old 03-07-2018, 01:33 PM
Country Kids's Avatar
Country Kids Country Kids is offline
Nature Lover
 
Join Date: Mar 2011
Posts: 5,024
Default

Quote:
Originally Posted by hwichlaz View Post
Ohhhhh, so itís the PARENTS that need the proof. That makes more sense. They are bearing extra scrutiny for some reason, maybe a red flag in their tax return, and the state wants to be sure of their deductions.
What's strange though is so many providers are having to deal with this. I have done this for almost 20 years and never have had this happen.

Now all of a sudden I have 1 last fall for two years previous and I'm sure I will have a couple more this tax season from cash paying clients.

Seems like an awful lot of people are getting audited for paying cash for childcare.
__________________
Each day is a fresh start
Never look back on regrets
Live life to the fullest
We only get one shot at this!!
Reply With Quote
  #16  
Old 03-07-2018, 01:35 PM
hwichlaz's Avatar
hwichlaz hwichlaz is online now
Daycare.com Member
 
Join Date: May 2013
Location: California
Posts: 1,668
Default

Itís probably an easy expense to fudge, since you only need your providers EIN, you can essentially put in any amount you like up to the limit.
Reply With Quote
  #17  
Old 03-07-2018, 01:42 PM
Cat Herder's Avatar
Cat Herder Cat Herder is offline
Advanced Daycare.com Member
 
Join Date: Dec 2010
Posts: 9,542
Default

I searched around a bit out of curiosity and stumbled on this: https://www.irs.gov/pub/irs-utl/child_care_provider.pdf

CHILD CARE PROVIDER
Audit Technique Guide

This Audit Techniques Guide (ATG) will provide information to enable examiners to effectively audit issues pertaining to child care providers.

Interesting reading
__________________
- Unless otherwise stated, all my posts are personal opinion and worth what you paid for them.
Reply With Quote
Reply

Tags
cash payment, state taxes

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
MD Taxes Unregistered Daycare and Taxes 1 03-15-2013 02:31 PM
Putting $ Aside for Taxes Patches Daycare and Taxes 11 03-02-2013 05:29 PM
State Funded Assistance Program Issues *vent* thatdivalady Daycare Center and Family Home Forum 13 01-24-2013 01:00 PM
MMK - Recording State Assistance Payments DancingQueen Daycare and Taxes 0 11-01-2010 09:56 AM
State Assistant Payments melissa ann Daycare Center and Family Home Forum 13 02-02-2010 06:34 PM


All times are GMT -7. The time now is 05:53 PM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming