Not Claiming Copays On Taxes??

[Provider_Manda]

I had a provider friend tell me that you do not claim your copays from county paid children, because it is a reimburstment for the money you spend on food?? I thought that is what the food program did...Im really confused, cause to me you would claim it since it is income.

[nanglgrl]

Yes you do claim it. It has nothing to do with food. Even if in some odd case it did have to do with food you still would claim in on taxes because you do claim the money from the food program as income on taxes but then you take out what you spent in food or you go by you attendence records to determine what the Deduction should be.

[Provider_Manda]

That's what I thought...it just didn't sound right

[itlw8]

it is tax fraud for her not to claim the income. As the parents can and should claim the expense she may get caught

[MarinaVanessa]

You ALWAYS claim ANY money that you get having to do with daycare. Family co-pays from subsidy, subsidy payments, food program payments, direct payments from clients etc. they all need to be marked down as income. Then later you claim your deductions.

[Provider_Manda]

Thanks guys, that is what I said...That didn't even make sense to me. Income is income and it needs to be claimed!! Im hoping to get this across to her so she doesn't make a mistake!