At the end of every year, I begin to prepare childcare totals for each family. Then in January, I send home a statement for each family that indicates the amount of childcare expenses paid to me for the previous calendar year. In fact, I believe it is vital that you issue childcare tax statements in a timely manner (preferably by January 31st), so that parents can file their child care expenses on their tax return. A tax statement does not have to be a fancy document. However, it must contain the following information for tax purposes:
- The name of your Business
- Your Business phone number, Address, City State and Zip Code
- Your Tax Id Number or Social Security Number
- The Name of the child that you provided care for
- The Amount Paid to you for childcare services
- Be sure to sign the document
If you do not have a Tax ID number, you may want to consider applying for one to issue to parents for tax purposes. As you are in the process of preparing statement, be sure to issue a parent letter or post a notice that indicates when tax statements will be issued. If you do not have a Parent Tax Statement form to issue to parents, I have created one for you—> Click here (Be sure to change the tax year on the form)
I wish you Continued Success!
Shiketa
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