Unregistered 05:02 AM 10-03-2012
A friend of mine is going to come once a week to do a kids music program with my daycare kids. She's considering turning it into a business but isn't one as of yet so I won't get receipts. Will my cashed checks serve as enough proof for tax purposes or will I not be able to claim it at all since I won't have a receipt? I'd really like to be able to claim it since it's $20 a week and it's 100% for daycare.
EchoMom 07:38 AM 10-03-2012
Why wouldn't she give you a receipt? You don't have to be a business to give a receipt.
Unregistered 08:10 AM 10-03-2012
I don't think she is planning on claiming it as income for her own taxes. I think I'm going to let her know I will need a receipt if we do this. It's a decent amount of a write off for me.
TomCopeland 07:49 AM 10-04-2012
To claim a business deduction you need an "adequate record", not necessarily a receipt. You can write "music teacher" on the memo line of your check, keep a record of when she was there and take a picture of her with the children. This would clearly be an adequate record.