Do Late Fees Count As Income?

[Zoe]

This is the first time I've had to charge a late fee and I honestly don't know if I should record it in the ledger along with the weekly check I receive that family. Is it income?

I'm pretty sure I know the answer to this, but it's better to check than to do it wrong, kwim?

Thanks ladies!

[daycare]

any fee that comes into your hand for services rendered is considered income.

[Zoe]

That's pretty much what I thought. Thanks daycare. When you record it, do you make a note that it's a late fee? And do the parents count it in their total for tax purposes?

I feel kinda silly asking this.

[sharlan]

Yes, as daycare said, any funds you receive are income.

[wdmmom]

Most parents are only allowed to claim a maximum dollar allowance on daycare expenses anyway. You don't need to itemize it for them.

[Zoe]

Most parents are only allowed to claim a maximum dollar allowance on daycare expenses anyway. You don't need to itemize it for them.

Thanks. Now to enjoy my extra 20 bucks.