newtodaycare22 10:20 AM 10-10-2012
Right now, my parents pay me 170 per week. This is the amount that I give them at the end of the year that I claim as income, as well as what they can claim for child care expenses. If we do field trips, they pay separate, which is usually a total of 20 per month. I don't say that it's income because it goes from my hand, right to the field trip. They also can't claim it as a child care expense.
I'm considering making my rates all inclusive. I would charge 175 per week and this would include all activities and field trips. Parents wouldn't pay any extra for those things and they could claim the entire 175 per week as a child care expense. For me, I could write off the field trips and activities, correct?
I think this would be simpler for money-collecting purposes, but would it also help me with regards to taxes? If it's going to hurt me...I won't bother. Thanks!
Unregistered 12:27 PM 10-10-2012
I would record all as ncome and give them a receipt. That money is then being written off by you as expenses anyways. From what I understand you have to record that as income. Maybe Tom can help on this one.
I charge one flat rate and that includes any extras that I do in that amount.
TomCopeland 08:23 AM 10-11-2012
Originally Posted by newtodaycare22:
Right now, my parents pay me 170 per week. This is the amount that I give them at the end of the year that I claim as income, as well as what they can claim for child care expenses. If we do field trips, they pay separate, which is usually a total of 20 per month. I don't say that it's income because it goes from my hand, right to the field trip. They also can't claim it as a child care expense.
I'm considering making my rates all inclusive. I would charge 175 per week and this would include all activities and field trips. Parents wouldn't pay any extra for those things and they could claim the entire 175 per week as a child care expense. For me, I could write off the field trips and activities, correct?
I think this would be simpler for money-collecting purposes, but would it also help me with regards to taxes? If it's going to hurt me...I won't bother. Thanks!
Money you receive from field trips should be reported as income and then deducted as a business expense. Money parents pay you for field trips can be claimed by them as part of their child care tax credit because this is money paid for the care of their child. Whether you charge 170 a week or 175 a week, your taxes will be the same, because the field trips are income and an expense.
newtodaycare22 11:05 AM 10-11-2012
Originally Posted by TomCopeland:
Money you receive from field trips should be reported as income and then deducted as a business expense. Money parents pay you for field trips can be claimed by them as part of their child care tax credit because this is money paid for the care of their child. Whether you charge 170 a week or 175 a week, your taxes will be the same, because the field trips are income and an expense.
Good to know-thanks!