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Old 01-31-2012, 05:53 AM
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beachgrl beachgrl is offline Member
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Question Record Of Payments Question

I had a couple children when i first began who were drop in only and when one went to full time is when i began keeping track of the weekly payments, the other choose not to go to full time and switched to another provider.

When i did my taxes last week, i reported the amounts that i had for my current child since he began full time care, his mom is wanting the total amount paid in but i only have that so is it a big deal if she reports having paid more if she has kept travk of what she paid prior to him starting full time. I can probably go back in my calendar and get an approximate amount for the drop in amounts paid for her if she wants but i didnt do that for the tax person so will that cause me an issue? Dcm has only paid in cash so im bot sure she knows what she has actually paid in either but she may have been keeping up with it, but i doubt that since she is adking for total paid.

Would you include drop in paid or estimate what it was or just do the full time rate from when the child became a regular client?i am new to all this.
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Old 01-31-2012, 06:04 AM
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Blackcat31 Blackcat31 is offline
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You need to include ALL monies paid to you during the year as income. Even if it was only $2.00.

Do you mean that you already submitted your taxes without including drop in payments to you? I am confused about that part?

Did the mom not get a receipt with each payment she made to you?

The mom also cannot claim any money paid out unless she has proof (cancelled checks or receipts) that she paid that amount to you.

Hope that helps.
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Old 01-31-2012, 08:25 AM
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beachgrl beachgrl is offline Member
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I wasnt keeping track as well asI did once I started having children in full time care but I did write down on my calendar the drop in days and amounts paid fornthe most part. I may have missed a day or so here and there because they were so sporadic. I started putting all payments in excell worksheet once i hqd full timers so i can go back in hers and add the days i have recorded on my calendar so thats no biggie. I took all my info to the tax lady but didnt have that included so now i will have to have that extra amount added to my total income because i want things to be right, dont want any tax issues kwim?

I have one that came one day asa drop in before starting full time after the start of this year so she will get the amount for that one day but i want to give all my parents a w-10 with total paid and have them sign it and me keep a copy. I have kept up with their payments for my full timers very well so i can printout the excel sheet if they want it too but none have asked for reciepts and from what i have seen on here, those that give out reciepts the pzrents end up losing them and still needing the provider to give them the
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Old 02-01-2012, 08:56 AM
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TomCopeland TomCopeland is online now
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Default Income is income

Any money you receive from parents is income, regardless of how little the amount. If you've already filed your tax return and the amount of unreported income is small (less than $100) I wouldn't worry about amending your return. The taxes and penalties on small amounts are minor if you get audited.

Join me for my webinar "2011 Family Child Care Tax Update: How to Reduce Your Taxes" on February 9th, 8:30pm Eastern Time. For more information:
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Old 02-01-2012, 10:08 AM
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beachgrl beachgrl is offline Member
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Thanks for responding Tom, I think the amount was close to $200 off the actual total for him but I am having to go back into my calendar and see what days he came that I had written down because he was so sporadic I wasn't putting the info in a spreadsheet like I am now. I think my guess to how much she paid wasn't too far off but I did have one other sporadic drop in that left because he was supposed to be ft but the parents wanted the whole week flexibility but only to pay for one or two days. I never knew when he would be here and they wouldn't call to tell me he wasn't coming for days they had planned for and so I told them I couldn't do it anymore unless they would be paying for a full time or part time spot and they bolted, never to be heard from again. They didn't even come get his belongings, but they would be the ones that I forget about and then claim the child care expenses and report something different than my records so I am double checking his as well.

I want things to be right and I am still learning a lot so I will probably be taking part in the tax webinar even though I have already done my taxes I don't think my tax person is as detailed as you are, not sure. I just have to make sure I have that evening free to do it. I will probably do an amended return and take care of whatever is owed because I want it to be right and not have to deal with anything later on.

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payment record, record keeping

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