Default Style Register
Daycare.com Forum
Daycare Center and Family Home Forum>Do Late Fees Count As Income?
Zoe 10:22 AM 09-13-2011
This is the first time I've had to charge a late fee and I honestly don't know if I should record it in the ledger along with the weekly check I receive that family. Is it income?

I'm pretty sure I know the answer to this, but it's better to check than to do it wrong, kwim?

Thanks ladies!
Reply
daycare 10:26 AM 09-13-2011
any fee that comes into your hand for services rendered is considered income.
Reply
Zoe 10:27 AM 09-13-2011
That's pretty much what I thought. Thanks daycare. When you record it, do you make a note that it's a late fee? And do the parents count it in their total for tax purposes?

I feel kinda silly asking this.
Reply
sharlan 10:28 AM 09-13-2011
Yes, as daycare said, any funds you receive are income.
Reply
wdmmom 10:28 AM 09-13-2011
Most parents are only allowed to claim a maximum dollar allowance on daycare expenses anyway. You don't need to itemize it for them.
Reply
Zoe 12:26 PM 09-13-2011
Originally Posted by wdmmom:
Most parents are only allowed to claim a maximum dollar allowance on daycare expenses anyway. You don't need to itemize it for them.
Thanks. Now to enjoy my extra 20 bucks.
Reply
Tags:income, late fees, record keeping
Reply Up