Unlicensed Provider Question

[EAP]

If you care for less children than a license requires, and are not licensed by the state but still have a fed tax id and still claim all the income can you still deduct all the home expenses etc?

[TheGoodLife]

If you care for less children than a license requires, and are not licensed by the state but still have a fed tax id and still claim all the income can you still deduct all the home expenses etc?

Yes As long as you are legal, which you would be, you can claim everything on taxes that a licensed provider can. (I am license exempt here in NE)

[EAP]

Yes As long as you are legal, which you would be, you can claim everything on taxes that a licensed provider can. (I am license exempt here in NE)

How does "legal" work? My state is basically 2 children who are not yours is fine anything more and you need license.

[itlw8]

so do you fit that 2 children???? if so you get to claim all home deductions.

[EAP]

so do you fit that 2 children???? if so you get to claim all home deductions.

I'm licensed now, I am just thinking of long term if I want to maintain it.

[TheGoodLife]

I am license exempt if I have 3 or less, other than my own kids. I do that, therefore I am "legal" and can claim everything on my taxes

[Cradle2crayons]

I am license exempt if I have 3 or less, other than my own kids. I do that, therefore I am "legal" and can claim everything on my taxes

Same here except here, it's 5 not counting my own to be license exempt.

[Memc2001]

Yes, before I was licensed I had already established an LLC and a Fed. Tax ID number for my clients. Makes everything legit.

You can deduct the percentage of your house, utilities, etc that is used for daycare area. Anything you are buying for business purpose goes as a deduction.

[TomCopeland]

license exempt

If you care for less children than a license requires, and are not licensed by the state but still have a fed tax id and still claim all the income can you still deduct all the home expenses etc?

Yes. All license exempt providers can claim business expenses in the same as as if they were licensed.

[Unregistered]

Was licensed for 1/2 of last year

Hello,
I have an EIN from when I was licensed last year, I have not removed it. Should I use my EIN number for the parents yearly receipt or would I need to use mu SS#? Would it cause conflict if I did use the EIN when I am no longer licensed?
Thank you.

[TomCopeland]

Ein

Hello,
I have an EIN from when I was licensed last year, I have not removed it. Should I use my EIN number for the parents yearly receipt or would I need to use mu SS#? Would it cause conflict if I did use the EIN when I am no longer licensed?
Thank you.

Continue to use your EIN even if you are not licensed anymore. The IRS still considers you to be in business, even if you are not licensed.

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