Who Has a Right to Financial Information?

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  • knoxmomof2
    Advanced Daycare.com Member
    • May 2014
    • 398

    Who Has a Right to Financial Information?

    Hi ladies! I am license exempt since I only care for 4 children in my home. I have a child with split parents, Dad alone pays for childcare- parents have a visitation schedule. I gave Dad the tax info this year as usual, now Mom is asking for it as well "for her records". Since I don't have an overseer to contact, and I'm not getting a good search match for my query on Google, I'm wondering : what are typical policies on this? They were together last year, and my other split parents pay for their days individually so this is new for me.

    Thanks in advance!
  • Cat Herder
    Advanced Daycare.com Member
    • Dec 2010
    • 13744

    #2
    Mom is not entitled to the statements that Dad paid.

    Give her a zero paid statement if she continues to push. Sounds like the old "first to file" tax trick. Not cool.
    - Unless otherwise stated, all my posts are personal opinion and worth what you paid for them.

    Comment

    • Ariana
      Advanced Daycare.com Member
      • Jun 2011
      • 8969

      #3
      In the past I have given two tax receipts split in half. This was the instructions from the parents though.

      I would tell the mom to speak with the dad about getting a copy. Tell her you only give one tax receipt to the person that pays.

      Comment

      • Blackcat31
        • Oct 2010
        • 36124

        #4
        Originally posted by Cat Herder
        Mom is not entitled to the statements that Dad paid.

        Give her a zero paid statement if she continues to push. Sounds like the old "first to file" tax trick. Not cool.


        I provide tax info to those that PAY me.
        I would not provide info to a person that does not pay me, even if it's the other parent.

        Comment

        • knoxmomof2
          Advanced Daycare.com Member
          • May 2014
          • 398

          #5
          Thanks for the quick replies. I really appreciate it! ☺️ Just didn't want to do the wrong thing.

          Comment

          • Leigh
            Daycare.com Member
            • Apr 2013
            • 3814

            #6
            Make a copy and give it to Dad, telling Mom that you provide info only to the person making payment or the one who signed the contract, and that she can pick up her copy from him.

            Comment

            • Thriftylady
              Daycare.com Member
              • Aug 2014
              • 5884

              #7
              When parents are split up, I require that one parent make all the payments to me. I will give the info to that person. It is then up to the parents to work it out between then. Their relationship is their issue not mine.

              Comment

              • sharlan
                Daycare.com Member
                • May 2011
                • 6067

                #8
                I had this issue, either last year or the year before.

                I only give my tax info to the parent who pays. In my case only the dcd pays. Mom does not pay so I only provide a W-10 to the dcd.

                Dcm called while getting her taxes done and asked for the info "since dcd can't claim it, I'm going to". I told her that I would not provide her with the info since she did not pay. Her tax preparer told her that was ok, they would just tell the IRS that I refused to provide the info. (I could hear him in the background.)

                I told her that if she claimed it and I got fined for not providing the info, that I would notify the IRS that she fraudulently claimed childcare that she did not pay.

                Comment

                • Ariana
                  Advanced Daycare.com Member
                  • Jun 2011
                  • 8969

                  #9
                  I am not 100% sure how it all works but even if dad is paying all of the daycare fees or if there is an appearance that he is she still might be paying indirectly. for example if his payments to her for spousal or child support are lessened because he is paying for childcare than she might be able to claim it IF he makes too much to claim it. In my opinion it is not necessarily fraud if the parent making less money claims the expense since it has been deducted from her spousal support. In the case of my divorced parents this is why I gave them each a receipt for 50% of payments. This way they were both able to claim a portion of the daycare paid. Spousal and child support were all calculated using daycare expenses.

                  Comment

                  • Thriftylady
                    Daycare.com Member
                    • Aug 2014
                    • 5884

                    #10
                    Originally posted by Ariana
                    I am not 100% sure how it all works but even if dad is paying all of the daycare fees or if there is an appearance that he is she still might be paying indirectly. for example if his payments to her for spousal or child support are lessened because he is paying for childcare than she might be able to claim it IF he makes too much to claim it. In my opinion it is not necessarily fraud if the parent making less money claims the expense since it has been deducted from her spousal support. In the case of my divorced parents this is why I gave them each a receipt for 50% of payments. This way they were both able to claim a portion of the daycare paid. Spousal and child support were all calculated using daycare expenses.
                    See though that isn't the correct way to do it either. It depends a lot on what the divorce decree says. Every one of them says something different. Some say that the deduction for the kiddo is every other year for each parent. That is why I have one parent pay me, give that parent the receipt and have the parents deal with it. Because they are the ones bound by whatever the divorce and custody papers say. Giving them each one for half *could* be breaking the law or violating a court order without you knowing it.

                    Comment

                    • Cat Herder
                      Advanced Daycare.com Member
                      • Dec 2010
                      • 13744

                      #11
                      Originally posted by Ariana
                      I gave them each a receipt for 50% of payments. This way they were both able to claim a portion of the daycare paid. Spousal and child support were all calculated using daycare expenses.
                      The courts will have one sign over a 8332 to the other according to their consent order. We don't have to be involved in it.

                      If both file, the IRS will make them prove who get's the deduction. We don't have to be involved in it.

                      Only contracting with one parent for payments is the simplest way to function; unless you (everyone you, not Ariana you) just like to be involved in it. ::
                      - Unless otherwise stated, all my posts are personal opinion and worth what you paid for them.

                      Comment

                      • knoxmomof2
                        Advanced Daycare.com Member
                        • May 2014
                        • 398

                        #12
                        Originally posted by Cat Herder
                        The courts will have one sign over a 8332 to the other according to their consent order. We don't have to be involved in it.

                        If both file, the IRS will make them prove who get's the deduction. We don't have to be involved in it.

                        Only contracting with one parent for payments is the simplest way to function; unless you (everyone you, not Ariana you) just like to be involved in it. ::
                        Bahaha.. Noooooo!

                        Comment

                        • Ariana
                          Advanced Daycare.com Member
                          • Jun 2011
                          • 8969

                          #13
                          Originally posted by Thriftylady
                          See though that isn't the correct way to do it either. It depends a lot on what the divorce decree says. Every one of them says something different. Some say that the deduction for the kiddo is every other year for each parent. That is why I have one parent pay me, give that parent the receipt and have the parents deal with it. Because they are the ones bound by whatever the divorce and custody papers say. Giving them each one for half *could* be breaking the law or violating a court order without you knowing it.
                          I did what they asked me to do. Mom was paying me but asked me to divide the receipt so they both could claim a portion. I gave both receipts to her and that is that. I am not privy to their agreements and if I broke a law I am well within my rights to say I didn't know!

                          Comment

                          • Thriftylady
                            Daycare.com Member
                            • Aug 2014
                            • 5884

                            #14
                            Originally posted by Ariana
                            I did what they asked me to do. Mom was paying me but asked me to divide the receipt so they both could claim a portion. I gave both receipts to her and that is that. I am not privy to their agreements and if I broke a law I am well within my rights to say I didn't know!
                            Well I wouldn't do it again. I would issue one. They can't both legally claim it as far as I know. The one claiming the child has the right to claim the daycare expenses. Hopefully they don't both get audited and drag your name into it so that you do also.

                            Comment

                            • Blackcat31
                              • Oct 2010
                              • 36124

                              #15
                              Originally posted by Ariana
                              I did what they asked me to do. Mom was paying me but asked me to divide the receipt so they both could claim a portion. I gave both receipts to her and that is that. I am not privy to their agreements and if I broke a law I am well within my rights to say I didn't know!
                              Originally posted by Thriftylady
                              Well I wouldn't do it again. I would issue one. They can't both legally claim it as far as I know. The one claiming the child has the right to claim the daycare expenses. Hopefully they don't both get audited and drag your name into it so that you do also.
                              Ariana is in Canada if that makes a difference.

                              I don't know that their tax laws are similar or not.

                              Comment

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