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    minnie0104's Avatar
    minnie0104 Posts: 1, Reputation: 1
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    #1

    Feb 28, 2014, 05:05 PM
    Home Daycare Taxes Cross checking amounts claimed as paid to amounts actually paid
    I have in home childcare and give my clients a receipt each year end with all the information needed for them to claim their childcare payments to me. When they claim childcare expenses on their taxes do they report the entire amount paid to the IRS or just the amount figured that is allowed to them for deduction? If they claimed more than they actually paid me would it red flag on my taxes if the amount that I claim as payments made to me differ from what clients report?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Feb 28, 2014, 06:02 PM
    Your give them a 1099 ? And supply the IRS a copy ?

    You must report all the money they paid you. this is your gross income,
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Feb 28, 2014, 08:51 PM
    Most people have NO CLUE that there are limits as to how much they can get back on the Child Care Credit, so they enter what they paid on the Form 2441.

    If they claim more than what they paid, it COULD red flag your return for closer examination if the numbers to not at least come close to matching.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Feb 28, 2014, 08:53 PM
    Fr Chuck,

    It is the other way around; the parents would give the day care provider the Form 1099-MISC, because they are paying HER.

    I believe that payments to daycare providers are exempt from the 1099 rules, but I am not sure.
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