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Daycare and Taxes>Q For Tom: Offsite Preschool Class
Mom2Two 12:57 PM 02-01-2017
Okay, Tom, I've got a tricky one for you (tricky for me at least).

1. I teach a preschool class at a homeschool co-op. I think the co-op is an LLC. Teachers charge a small fee per child, which is to cover expenses. Parents pay the co-op, the co-op takes $10 per child to go towards rent of the space, then the rest goes back to the teachers. I received $640 in "teacher checks" last year, so I'm getting a 1099.

2. I take daycare children with me to the co-op. I pay for the kids, then bill my daycare parents along with my regular billing, and the daycare parents pay (reimburse) me as part of my regular bill.

3. The part where I pay for my daycare kids and get reimbursed isn't confusing to me: I think I would just count the cost of the class as an expense, which will count against the extra "income" of getting reimbursed by the daycare parents.

But what about the "income" from the co-op program? None of those families are enrolled in my program and it's off-site. It's only one hour a week, 12-24 weeks a year, depending on the child.

I'm having a hard time wrapping my head around this one. Is the income just some kind of random income, as though I babysat some kids for a few hours a week without them being enrolled?
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TomCopeland 10:59 AM 02-02-2017
Originally Posted by Mom2Two:
Okay, Tom, I've got a tricky one for you (tricky for me at least).

1. I teach a preschool class at a homeschool co-op. I think the co-op is an LLC. Teachers charge a small fee per child, which is to cover expenses. Parents pay the co-op, the co-op takes $10 per child to go towards rent of the space, then the rest goes back to the teachers. I received $640 in "teacher checks" last year, so I'm getting a 1099.

2. I take daycare children with me to the co-op. I pay for the kids, then bill my daycare parents along with my regular billing, and the daycare parents pay (reimburse) me as part of my regular bill.

3. The part where I pay for my daycare kids and get reimbursed isn't confusing to me: I think I would just count the cost of the class as an expense, which will count against the extra "income" of getting reimbursed by the daycare parents.

But what about the "income" from the co-op program? None of those families are enrolled in my program and it's off-site. It's only one hour a week, 12-24 weeks a year, depending on the child.

I'm having a hard time wrapping my head around this one. Is the income just some kind of random income, as though I babysat some kids for a few hours a week without them being enrolled?
You are correct that you can deduct the amount you pay for your daycare children to attend this program and that the money parents reimburse you for this is taxable income. The income you get as a teacher in this program is taxable income. I would report it on your Schedule C as Other Income, line 6. It's a second job that is closely related to caring for children, so lump it together with your child care income.
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Mom2Two 12:34 PM 02-02-2017
Originally Posted by TomCopeland:
You are correct that you can deduct the amount you pay for your daycare children to attend this program and that the money parents reimburse you for this is taxable income. The income you get as a teacher in this program is taxable income. I would report it on your Schedule C as Other Income, line 6. It's a second job that is closely related to caring for children, so lump it together with your child care income.
Thanks, Tom. My income is just higher this year overall (yay) but that means I'm having to get very detailed on my expenses. It's the first year that I've even bothered to list stuff like paper towels, toilet paper, and dish soap. In previous years, big deductions like the home office deduction have reduced taxes enough.
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Tags:schedule c, tom copeland
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