Am I REQUIRED to provide tax info for clients who were with me for less than a month who I won't even be claiming as an income as I don't have to under a certain dollar amount for the year?

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Yes you do and yes they will want to claim it on their taxes.

Why do you think you do not have to claim income if under a certain amount ? Sorry you need to claim all income. Actually you will likely come out ahead after you take your deductions.

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You are not required to provide any tax information (other than your EIN or SS #) to parents.

You are required to report ALL income, even if it was just a $1 from one family.

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Hi Breezy! Hope your still enjoying your new job!!!!

Heres what Tom Copeland has to say on the subject:

You are not required to but if you are on good terms with the parents in your program I do recommend that you give parents an end-of-year receipt, along with your identification number. Ask the parent to sign one copy and keep it in your records. This can help protect you if you are audited and are asked to provide evidence of what the parent paid you for the year. Many providers give receipts to parents this time of year, but most don't keep a copy signed by the parent.

Here's something else I found:

Briefly, you are not required to give parents a total of their payments to you for their taxes. I generally recommend it, though, because it's good to have the parents report the correct amount on Form 2441 for the Child and Dependent Care Credit .

Here is the only thing you are required by law to do: If a parent gives you an IRS Form W-10, Dependent Care Provider's Identification and Certification, then you must complete the form and return it to them. You can face a $50 penalty for not giving your correct tax id number or for refusing to fill out the form.

You don't have to give your tax id number or other information over the phone or any other way except when presented with Form W-10. For your current parents, it's a good idea to tell them that you prefer to fill out Form W-10 yourself and to proactively provide the form to them. In his FCC Record-Keeping Guide, Seventh Edition, Tom Copeland writes, "If a former parent who owes you money asks for your number, you can stall by saying that you'll provide it only after all your fees are paid in full." But if they learn about Form W-10 and present it to you, you must fill it out.

One final note: Do NOT use your social security number as your tax id number on Form W-10. Protect your privacy by using an Employer Identification Number. Apply for an EIN now, if you don't already have one. It only takes a few minutes.

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As for giving your client tax info:
If your client provides you with a W-10 form then you are required to fill it out with your tax ID (please don't use your SSN) but you are not required to give them an end total however it's probably in your best interest just in case they try to claim more on their taxes for the child care tax credit than what they actually paid you. This is also a good idea too if you file your taxes because your total has to match the total that your clients claim. If they are different and it's flagged you and your client can be audited.

As for whether you have to file or not:
If you owe money you have to file. If you are itemizing or relying on deductions to nullify your taxes you must file in order to document that you do not owe anything. If you do not owe you do not have to file but it may be in your best interest to file as you may have money coming back to you.

Also you must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive. For example, self-employed individuals generally must file a tax return if their net income from self employment exceeds $400 total for the year (last I heard but it could have changed)

So even though this client may have not paid you more than $400 for the 2012 year you have to add that total to the amount that you made from other clients in 2012 and that's the total you go by to determine whether or not you have to file. Your best bet is for Steve Copeland to chime in or for you to ask a tax professional.

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When I have gone to file in the past and last night it wont even except income under $2700. So, I was only wondering if I had to go seek out parents that were only with me a short while.

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You don't have to look for them, they have to ask for it from you but you should still add the amount that they paid you for childcare to your total income that you received for the year.

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