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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 01-20-2021, 06:41 AM
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Reimel61 Reimel61 is offline
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Default Security Deposit Return

Hi

How do I address a refunded security deposit tax wise? Normally I apply it to the last week of care but I abruptly ended care with this family due to Covid and wanting to remain small in size due to the pandamic. Due I count it as a business expense? and not worry that she has already claimed it in a previous year or do I deduct the amount from her year end payment statement and just count as less income for my business?

Thanks
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Old 01-20-2021, 08:15 AM
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If the refund happens now then it has to happen this year not next. (Per Tom Copeland)
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Old 01-21-2021, 08:28 AM
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Quote:
Originally Posted by Reimel61 View Post
Hi

How do I address a refunded security deposit tax wise? Normally I apply it to the last week of care but I abruptly ended care with this family due to Covid and wanting to remain small in size due to the pandamic. Due I count it as a business expense? and not worry that she has already claimed it in a previous year or do I deduct the amount from her year end payment statement and just count as less income for my business?

Thanks
A refunded security deposit is a business expense. Call it "parent refund" and put it under "other expenses" on Schedule C. Deduct this from the amount of her end of year receipt statement.
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Old 01-21-2021, 11:02 AM
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thank you
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