Tax Form For Legally Non Licensed In MN

[ABCDaycareMN]

I have 1 family starting on Monday for care and they are wondering if I will give them a tax form at the end of the year. I don't know how to go about this. Do I just record hours and money?

Links are helpful and much appreciated.

What's the form?

[Lucy]

I have 1 family starting on Monday for care and they are wondering if I will give them a tax form at the end of the year. I don't know how to go about this. Do I just record hours and money?

Links are helpful and much appreciated.

What's the form?

You are actually not required by law to provide them with anything whatsoever. But most Providers find it good customer relations to give them some sort of year-end receipt. You can either go buy a receipt book at any office supply store (they usually have duplicates built in), or just make up a form on your computer. You can choose to give a receipt with every payment, or just one final one at the end of the year.

What I do is just give them a W-10 next January http://www.irs.gov/pub/irs-pdf/fw10.pdf which is an IRS form that provides them with your social security or tax id number, if you have one. If you don't... you should get one. That way you aren't giving out your ss#. It is also known as an EIN (employer id number) Here's where you apply for one. http://www.irs.gov/Businesses/Small-...8EIN%29-Online

On the W-10 there is no spot for a final yearly amount paid. You can choose to provide the amount or not provide it. If you don't want the extra paperwork, tell them FROM THE START that their checks are their receipts and that they should start keeping track of what they've paid you right from the first check. But some providers feel that it's no big deal for you to keep track and write it on the top of the W-10 form.

Hope this helps!