A daycare tax statement must be given to parents at the end of the year. You will use it to claim all income received. The parents will use it to claim a deduction if they are eligible.
The amount that you claim must match exactly with the amount parents are claiming.
Keep track during the year of all payments made to you. Add up the payments at the end of the year and issue a tax statement to each of your parents.
*Make sure to make TWO copies of each form. You and the parents will sign both copies. One copy is given to the parents and the other copy goes in your own records. Do this for each set of parents.This is important because having the parent signature means they agree that the amount is correct.
This is your way of making sure that your records match the parents records.
Give the parents time to let you know if the amount you have listed does not match up with their records. Let them know they have a week or two in case of any dispute. I never had a dispute but if you keep careful records, then you will know that your totals are correct.
In all honesty, I only had a few sets of parents who kept track, which really surprised me. The others simply accepted my end of the year statement without comment.
You can apply for an EIN number which is an Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. This is not required for daycare providers, but if you have an issue with giving out your social security number then consider this an option. It can be applied for online.
This is a simple basic form. Two forms per page.
Just lists the amount and has space for signatures.
This form includes room for all the information parents need.
Lots of room for both names and addresses, total amount received and in what form it came, your SSI#, and signatures of both parties.
This form is similar to the form above.
Simply use the form you are most comfortable using.
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