Reporting End of Year Income and Expenses

6a0133f3fc5805970b0147e0539360970b-320wiFamily child care providers need to follow these rules about reporting their income and expenses for the month of December:

Report your income in the year you receive it. So, if you got a check from a parent on December 31st for care you are going to provide in January 2016 you must report this as income in 2015. This is true even if you don’t deposit the check until 2016. If you receive a check from a parent on January 3, 2016 for child care you provided in December, report this as 2016 income. You can save a little money on your 2010 taxes if you ask parents to pay you in January for December care.

Report as income money you received from the Food Program in the year you receive it. So, if you get a check in January 2016 for food you served in 2015 –  report this as 2016 income. If your Food Program sponsor gives you a year-end report showing how much in reimbursements you received in 2015 this may not match with what you report as income on your tax return. Don’t worry about this. Keep your own records showing what year you actually received the money and you will be fine.

Claim expenses in the year you incur the debt for the expense. If you write a check or pay for an item with a credit/debit card on December 31, 2015, record this as an expense in 2015, even though the check and credit card won’t be debited or charged to you until 2016.

To save some money on your 2015 taxes, buy extra supplies and other items you will need in December of 2015.

Tom Copeland –

Image credit:

6a0133f3fc5805970b01bb08151dd5970d-320wiFor more information, see my book Family Child Care Record Keeping Guide.




Copyright 2010, Tom Copeland,


Categories: Record Keeping, Record Keeping & Taxes

Tags: , , , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *