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One of the parents I have is in subsidy program. So I get paid partial amount directly from subsidy, then the parent makes a check. When I do end of the year statement to give to the parent, do I just sum up what she paid me? or do I also have to write down how much I received from the subsidy, too, then also do a total of both?
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Oh, I forgot to add, the parent actually still owed me her portion of money (the subsidy side was all paid and re-calculated and made sure everything's correct since the case almost went to the court) - I just got tired of dealing with the stress with this person (I'm pregnant and can't deal with that much stress on top of running the business!) so we had an agreement that we both signed with an official witness that we will never bring anything ever again and just waived off the rest of her fees. So... does that affect this end of year statement as well? I'm just worried that someone might say, why didn't she have to pay all her end when subsidy did... From all I had to endure, from rumors in neighborhood to officials who came after me believing in the parent' lies and my having to fight off and defend myself with all kinds of evidence and documentation I accumulated (and I did successfully fight them off, as I know some of those officials did get in trouble in their own offices for accusing me without even hearing my side of story), it just became too exhausting, and the money was just not worth trying to get that out of her.
So, how much information do I have to include in the end of year statement? Just how much she paid me? or also how much subsidy paid me? and a copy of agreement? (actually she has the copy of the agreement, too) -
end of year statements
Give the parent a receipt for how much she actually paid you, not how much she owed you. That's the amount the parent can claim towards her child care tax credit.
You must report as income the money you received from the parent, as well as the money you received from the subsidy program. You can't deduct the amount the parent owed you.Comment
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