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Author Topic: Childcare Receipts and Tax Breaks  (Read 2700 times)

Offline spud

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Childcare Receipts and Tax Breaks
« on: February 14, 2008, 12:57:46 PM »
Many daycare providers/nannies or babysitters work "under the table" and want to be paid in cash and do not offer childcare receipts under this (usually cheaper) agreement.  I like some providers DO provide receipts for my childcare services and encourage parents to find the best way to benefit from their childcare expenses. There are 2 different ways to determine how to apply your daycare expenses on your taxes.  You can claim in each year as childcare expenses or you can adjust your child benefits to reflect your daycare expenses..I encourage parents to check out which way gives you the biggest return. 
Daycare providers must pay on the income they generate (just like all good law abiding tax paying citizens) on each years income taxes.
Parents can also use camps as daycare expenses.  Make sure you ask your provider/nanny or babysitter if they will provide you with reciepts.
Young babysitters will never have to pay taxes on this income (because they will never make more than personal) but they will have to claim it if you want to use their services as a tax break and claim it..

 

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