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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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Old 02-11-2013, 03:46 PM
Country Kids's Avatar
Country Kids Country Kids is offline
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Default Tom-What Year to Claim Things In?

Hi Tom,

2 quick questions for you.

1. I bill monthly cycles at the end of the month. Now when I issue Dec. bill on the 31 and the parents pay me by the 5th, do I claim that on the previous years taxes or the current year? If I claim for the current year, how do I do it sense its for the previous years service? Also, my parents are claiming it for the previous years taxes (childcare) so if we are all doing it differently will it not mess everything up?

2. Expenses-my utilities are also a monthly cycle. So for the Dec. ones that I have to pay for in Jan., do I claim those expenses on the previous years taxes or the current year. Ex. Water bill for Dec. 2012 is due Jan. 10, 2013. Will I claim those on 2012 taxes or 2013?
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Old 02-11-2013, 04:28 PM
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TomCopeland TomCopeland is offline
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Default When to claim expenses

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Originally Posted by Country Kids View Post
Hi Tom,

2 quick questions for you.

1. I bill monthly cycles at the end of the month. Now when I issue Dec. bill on the 31 and the parents pay me by the 5th, do I claim that on the previous years taxes or the current year? If I claim for the current year, how do I do it sense its for the previous years service? Also, my parents are claiming it for the previous years taxes (childcare) so if we are all doing it differently will it not mess everything up?

2. Expenses-my utilities are also a monthly cycle. So for the Dec. ones that I have to pay for in Jan., do I claim those expenses on the previous years taxes or the current year. Ex. Water bill for Dec. 2012 is due Jan. 10, 2013. Will I claim those on 2012 taxes or 2013?
Claim income in the year you receive it. So, when parents pay you on Jan 5th 2013 for a December bill, it's 2013 income. The fact that parents claim this for 2012 doesn't make any difference. Keep your own records of when you got paid and you will be fine.

Claim expenses in the year you pay for them. So, water bill paid in Jan 2013 is a 2013 expense.

Join me for a webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab
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