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Long story short.....was watching neighborhood kid b/a in the beginning of the year. People had to move out of the house they were renting ASAP and put kid into new school zone. Didn't see or hear from them again after they moved. Thing is they still owed me a little backed up daycare....$240 worth. Not enough to make me lose sleep over but is there a place to enter this in minute menu as a loss. Will it help on my taxes to bring up as a "loss"??
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no, because you never received the money. It's not a loss, it's also not a gain. It just doesn't exist. -
That is crazy that it is not a loss because of the work, energy, space lost in the process.Comment
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There should be a place in your actual tax filing for business losses or unpaid debts and that would go there.Comment
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"Loss"
You only report money as income if you receive it. You didn't report the $240 as income, so your taxes will be lower. You can't deduct the $240 as an expense. It may not seem fair, but that's the law. So, don't enter anything in Minute Menu for the $240.
Here's when a business loss would be deductible: You received $240 in 2013 and reported it as income in 2013 and paid taxes on it. In 2014 the parent's check bounced and the bank withdrew $240 from your bank account. On your 2014 tax return you could show the $240 as a business expense (loss). This will almost never happen in family child care because you aren't reporting the $240 as income in the first place.Comment
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