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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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  #1  
Old 06-25-2018, 11:26 AM
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Default Parent Nights Out...W10's

I just started offering Parent's night out and was wondering how to track this income. If I add it to my kidkare account, it would be added to their W10's which would increase their total for the childcare/dependent care tax credit. Would this be the correct way to track it even though it was not used for work or should I just have a separate receipt book for these nights?
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Old 06-25-2018, 11:54 AM
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Originally Posted by Jodik View Post
I just started offering Parent's night out and was wondering how to track this income. If I add it to my kidkare account, it would be added to their W10's which would increase their total for the childcare/dependent care tax credit. Would this be the correct way to track it even though it was not used for work or should I just have a separate receipt book for these nights?
I have a separate receipt book for PNO or Drop-ins that come, but don't count for work/school on taxes (errands, Dr's appointments etc). I write on the receipts what the fees were for so parents can't add non credit fees to creditable ones when they take their paperwork to tax preparer.
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Old 06-25-2018, 12:43 PM
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Kidkare has a category for “other income”. That’s where I put in that type of payment, and my alimony.
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Old 06-25-2018, 02:55 PM
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Default Thank you!

Thank you so much for your help! I really appreciate it!
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Old 06-25-2018, 03:01 PM
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Originally Posted by Jodik View Post
I just started offering Parent's night out and was wondering how to track this income. If I add it to my kidkare account, it would be added to their W10's which would increase their total for the childcare/dependent care tax credit. Would this be the correct way to track it even though it was not used for work or should I just have a separate receipt book for these nights?
I think that you should verify this with Tom Copeland but I believe that it should be added to their W10 as it is still child care no matter what time of the day it is and it is still income for you.
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Old 06-25-2018, 04:30 PM
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I think that you should verify this with Tom Copeland but I believe that it should be added to their W10 as it is still child care no matter what time of the day it is and it is still income for you.
Yes best ask Tom. But I’d separate it on their w-10. Last I checked, it’s a deduction if you’re paying for care so you can work or go to school.
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Old 06-26-2018, 12:15 PM
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Default child care income

Quote:
Originally Posted by Jodik View Post
I just started offering Parent's night out and was wondering how to track this income. If I add it to my kidkare account, it would be added to their W10's which would increase their total for the childcare/dependent care tax credit. Would this be the correct way to track it even though it was not used for work or should I just have a separate receipt book for these nights?
Any money earned from parents is income. But, it doesn't count towards a parent's child care tax credit if they are not working or attending school. So, I'd call it other income and not include it on the parent's W-10.
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Old 06-26-2018, 12:22 PM
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it doesn't count towards a parent's child care tax credit if they are not working or attending school.
Sorry to hijack.

Does this apply to teachers who are off for summer but still bring kids full time?

That seems harsh. Is there another clause for that?
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Old 06-26-2018, 06:46 PM
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Sorry to hijack.

Does this apply to teachers who are off for summer but still bring kids full time?

That seems harsh. Is there another clause for that?
Even when off for summer they are still working. Teachers are working a lot more than mon-fri 8-3 sept-June.

However, ever single full time family pays me roughly twice their deduction amount anyway so not including summers likely wouldn’t hurt or help them on taxes.
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Old 06-26-2018, 06:50 PM
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Example. Our school year runs Sept 7th through mid June this next year. But teachers are contracted to be at school working for 3 weeks after school let’s out and 3 weeks before it goes back. They get approx one month off. And most of them are working on some of their professional dev hours during that time.
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Old 06-27-2018, 06:39 AM
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Originally Posted by hwichlaz View Post
Example. Our school year runs Sept 7th through mid June this next year. But teachers are contracted to be at school working for 3 weeks after school let’s out and 3 weeks before it goes back. They get approx one month off. And most of them are working on some of their professional dev hours during that time.
That is not how my teacher families contracts go.

Both have been off since 1 week following the last day of school (June 1) and will return one week prior to the first day (Aug 6). Both work until 5p during the school year.

I thought maybe there was a provision for them.
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Old 06-27-2018, 07:59 AM
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Default child care tax credit

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Originally Posted by Cat Herder View Post
Sorry to hijack.

Does this apply to teachers who are off for summer but still bring kids full time?

That seems harsh. Is there another clause for that?
Good question. The child care tax credit is only available when parents are working or in school. Sorry. See #2: https://www.irs.gov/newsroom/ten-thi...nt-care-credit
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Old 06-27-2018, 08:07 AM
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Originally Posted by TomCopeland View Post
Good question. The child care tax credit is only available when parents are working or in school. Sorry. See #2: https://www.irs.gov/newsroom/ten-thi...nt-care-credit
Tom... what happens when you are in a year round school district? Most of the county (and surrounding ones) are on normal schedules, my particular district however is year round for the elem, middle & high school and the weeks off aren't normal extended closings, but 2 weeks here, and 2 weeks there if you get my meaning - teachers work odd days even if kids are out.
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Old 06-27-2018, 12:26 PM
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Default child care tax credit

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Originally Posted by LysesKids View Post
Tom... what happens when you are in a year round school district? Most of the county (and surrounding ones) are on normal schedules, my particular district however is year round for the elem, middle & high school and the weeks off aren't normal extended closings, but 2 weeks here, and 2 weeks there if you get my meaning - teachers work odd days even if kids are out.
Whether or not a parent is entitled to claim the child care tax credit is something for the parent to deal with, not the provider. It really doesn't matter whether or not you are putting all or some of their payments on their W-10 form. I wouldn't spend much time worrying about this. It's all income to you. It's up to the parent to determine what they can claim towards the credit. I wouldn't try to educate the parents too much about this, since it's their responsibility.
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