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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 09-27-2013, 09:24 AM
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daycare daycare is offline
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Default When Others pay for Daycare

Hi Tom-

I have a family that is divided. Often I will get checks from many different family members. Everyone from the Aunt to the Grandparents are helping the single mom to pay for childcare. They are paying by personal check.

Who do I give the credit to and how?

What if each person that pays wants to claim it on their taxes? Can they?

I asked the mom to have the family members give her the money and then pay me herself, but she has not done this yet.

Any advice on this would be great.

thanks in advance
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Old 09-27-2013, 12:24 PM
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MarinaVanessa MarinaVanessa is offline
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If memory serves me right I think you can only give receipts/w-10's to the people that paid and in the amounts that they paid them in. In other words if DCM paid you $500, grandma paid $200 and auntie paid $100 then you would give each their own W-10 with their totals. You wouldn't be able to give DCM one receipt with $800 total because she did not pay it all herself KWIM? Or something like that.

Also I'm not suer if grandma and others will even be able to claim it on their taxes or not ... I'm wondering how that would work since the child is not their dependent KWIM? Hopefully Tom can clarify this for us.
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Old 09-27-2013, 12:28 PM
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thanks MV...

Yes I was thinking this and then trying to think how in the world would I track that. I would have to create an account for each person and in MMK I cant do that. My MMK program is tied to the Food Program, so I cant create accounts unless they are attached to a child. In this case it's 4-5 adults to the same child. Super confusing.....
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Old 09-27-2013, 01:16 PM
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Default Multiply people paying

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Originally Posted by daycare View Post
Hi Tom-

I have a family that is divided. Often I will get checks from many different family members. Everyone from the Aunt to the Grandparents are helping the single mom to pay for childcare. They are paying by personal check.

Who do I give the credit to and how?

What if each person that pays wants to claim it on their taxes? Can they?

I asked the mom to have the family members give her the money and then pay me herself, but she has not done this yet.

Any advice on this would be great.

thanks in advance
You should only give a W-10 or other receipt to the person who paid you, in the amount that they personally paid. Parents can only claim the child care tax credit if they can claim their child as their dependent. To do this they have to have the child live with them for more than half the year and provide more than half the support for the child. You won't know who is entitled to claim the dependent, and it's not your business to know. So, give out receipts based on who paid you what and let them sort it out.
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Old 09-27-2013, 01:21 PM
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Default Recording parent income

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Originally Posted by daycare View Post
thanks MV...

Yes I was thinking this and then trying to think how in the world would I track that. I would have to create an account for each person and in MMK I cant do that. My MMK program is tied to the Food Program, so I cant create accounts unless they are attached to a child. In this case it's 4-5 adults to the same child. Super confusing.....
Good question. The short answer is enter the income from the parents into MM as parent income. Enter income for the same child that is paid by another person under a separate third party payment (like a subsidy payment). Will that work.

I've entered into a partnership with Minute Menu to provide extensive technical assistance to users of Minute Menu Kids Pro. For more info: http://www.tomcopelandblog.com/2013/...u-and-you.html
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