Unlicensed/Illegal Daycare And Taxes

[Unregistered]

So I have a silly question. If a parent takes their kid to an unlicensed/illegal (operating with more than one family) "daycare", do they get to claim the money they paid for daycare on their taxes?

Just curious...

[Blackcat31]

So I have a silly question. If a parent takes their kid to an unlicensed/illegal (operating with more than one family) "daycare", do they get to claim the money they paid for daycare on their taxes?

Just curious...

Absolutely! Doesn't matter who you paid money to. If you paid out, you can claim it.

[Daycaremomof2]

Just an FYI: Not all unlicensed daycares are illegal.

You can fill out a W10 form and give it to your provider to sign. They need to put their ss #, name, and address on it, and you can file with that.

[Cat Herder]

First, There is a difference is LEGALLY unlicensed and ILLEGAL daycare. Apples and Bananas.

Here you can have 2 kids from two families without registering with the State.

In some States it is 5

ALL daycare providers MUST claim the income...no LEGAL exceptions.

IMHO, Any parents willing to use illegal daycare, under the table pay, are just as guilty as the provider.

[Meyou]

First, There is a difference is LEGALLY unlicensed and ILLEGAL daycare. Apples and Bananas.

Here you can have 2 kids from two families without registering with the State.

In some States it is 5

ALL daycare providers MUST claim the income...no LEGAL exceptions.

IMHO, Any parent willing to use illegal daycare, under the table pay, are just as guilty as the provider.

Correct. I can have 6 children other than my own without a license. I still claim my income and my parents claim what they pay me.

[Cat Herder]

Correct. I can have 6 children other than my own without a license. I still claim my income and my parents claim what they pay me.

I am still soooo jealous of you.... 6 is all I can have even with a CDA and hoops.

Sorry.... back on topic.

[TomCopeland]

child care tax credit/illegal care

The rule here is a little tricky. If a parent uses a child care provider who cares for less than six children, then the parent can claim the child care tax credit, whether or not the provider is operating illegally under state law.

If the provider is caring for six or more children, then the parent may not claim the child care tax credit unless the provider is licensed, or exempt from licensing, according to their state law.

Join me for my webinar "2011 Family Child Care Tax Update: How to Reduce Your Taxes" on February 9th, 8:30-10:00pm Eastern time: http://events.r20.constantcontact.co...&llr=yatrx4cab

[Unregistered]

Correct. I can have 6 children other than my own without a license. I still claim my income and my parents claim what they pay me.

what form do you file if your are unlicensed?

[Punkin.Butts]

I am unlisc. but operating legally.
In MO your allowed to have 4 unrelated (to me) children total without a lisc.
It can be from 4 different families if you want.
My children, neices, nephews, and grandchildren do NOT count in that 4. I can have As many of them as i can handle on top of the 4 unrelated children.

I file all the exact same documents as a liscensed provider or care center would.

[TomCopeland]

unlicensed

what form do you file if your are unlicensed?

You file the same tax forms whether you are licensed or not. Use Schedule C for your income and expenses. Use Form 8829 for your house expenses.

[Unregistered]

You file the same tax forms whether you are licensed or not. Use Schedule C for your income and expenses. Use Form 8829 for your house expenses.

mr copeland,

ive run across your website when looking up info . just wanted to say thank you for the clear concise year end receipt page- i honestly thought i was going nuts until i ran into your page.

question though: ive filed a schedule C way back when for a paper delivery route i once had, now ive moved on to in home daycare. ive never filed a form 8829. what would go on this form? just mortgage/home insurance expenses or would trash/gas/electricity expenses go on this form? thank you.

[TomCopeland]

Form 8829

mr copeland,

ive run across your website when looking up info . just wanted to say thank you for the clear concise year end receipt page- i honestly thought i was going nuts until i ran into your page.

question though: ive filed a schedule C way back when for a paper delivery route i once had, now ive moved on to in home daycare. ive never filed a form 8829. what would go on this form? just mortgage/home insurance expenses or would trash/gas/electricity expenses go on this form? thank you.

Put the following expenses onto Form 8829: house insurance, house repairs, property tax, mortgage interest, utilities (gas/electric/sewer/electricity/water/trash), house depreciation, house rent.

[Unregistered]

Illegal/Unlicensed and Not Paying Taxes

This was my former daycare person. She was watching way more than the legal amount of children. Cash only, refused to give her SS# and was not paying taxes. We recently fired her and I am debating if I should report her of if I would get hit as well for not claiming what we paid to her the past nine years. Full disclosure, this person has been watching kids from her home for 15 years and not paying taxes. What should I do? Look the other way?

[hwichlaz]

This was my former daycare person. She was watching way more than the legal amount of children. Cash only, refused to give her SS# and was not paying taxes. We recently fired her and I am debating if I should report her of if I would get hit as well for not claiming what we paid to her the past nine years. Full disclosure, this person has been watching kids from her home for 15 years and not paying taxes. What should I do? Look the other way?

you don't have to claim daycare expense as far as I know, but you were satisfied with her for 9 years, it sounds like sour grapes at this point....I say stay in your lane.

[Alwaysgreener]

you don't have to claim daycare expense as far as I know, but you were satisfied with her for 9 years, it sounds like sour grapes at this point....I say stay in your lane.

The provider doesn't have to claim expenses but they are required to claim 100% of their income. The poster was talking about someone not claiming all their income and being over ratio.