Tax Statements and Subsidy

[CountryRoads]

This is my first year with families who get child care assistance.

Do I just put the portion that they paid on their tax receipt? Do I put the portion that the state covered anywhere on it?

Thanks in advance!

[Blackcat31]

I get a 1099 from the state for what the state paid to me but I only provide a statement to the parent for what THEY themselves paid me out of pocket.

[CountryRoads]

I get a 1099 from the state for what the state paid to me but I only provide a statement to the parent for what THEY themselves paid me out of pocket.

Oh, gotcha! Thanks!

Can I claim that money from the state as income from 2019? It's just from December. I'll be receiving the checks this month, so will I have to wait to claim it for 2020?

[Blackcat31]

Oh, gotcha! Thanks!

Can I claim that money from the state as income from 2019? It's just from December. I'll be receiving the checks this month, so will I have to wait to claim it for 2020?

You claim it the same year you physically receive it.
Doesn't matter what time frame it was for.

If you get the check in Dec 2019...claim it on 2019 taxes
If you get the check in Jan 2020...claim it on your 2020 takes.

[CountryRoads]

You claim it the same year you physically receive it.
Doesn't matter what time frame it was for.

If you get the check in Dec 2019...claim it on 2019 taxes
If you get the check in Jan 2020...claim it on your 2020 takes.

Oh, gosh. I've been doing it wrong the past few years then

So, I get paid after care is provided (I know, I know. It's worked out good for me so far - fingers crossed). When I give parents their tax receipts, do I still put their December amount on the receipt, even though some paid their December bill in January?

[Blackcat31]

Oh, gosh. I've been doing it wrong the past few years then

So, I get paid after care is provided (I know, I know. It's worked out good for me so far - fingers crossed). When I give parents their tax receipts, do I still put their December amount on the receipt, even though some paid their December bill in January?

Same with the parent tax receipts..... their yearly total should include ONLY what they paid in that year.

If the Jones family received care December 30 and 31, 2019 but did not pay for those services until January 1 2020 then that amount does not get included in their year end statement for 2019 and will go on their yearly statement for 2020.

Hopefully that makes sense.