Even though you are not required to give parents a receipt for their child care payments, it’s a good business practice to do so.
See my article, “The Truth About Giving Parents a Receipt.”
What should you do, however, when a person who hasn’t paid you wants a receipt?
This question comes up a lot in workshops I conduct across the country. Parents are asking for receipts because they want to claim the child care tax credit. A parent is entitled to claim the credit if they provide more than half the child’s support and live with the child more than half the year.
Let’s say that the mother is paying you and the parents are separated or divorced. The father says he has been paying the mother child support and wants a receipt so he can claim the child care tax credit. What do you say to the father?
You don’t know if the father paid the mother for child care. Don’t try to determine which parent is entitled to claim the child care tax credit. It’s none of your business.
You should give a receipt to the parent who paid you. So, tell the father you won’t give him a receipt and that he needs to talk to the mother about claiming the child care tax credit.
What do you do if both mother and father have paid you for child care throughout the year and each parent is asking you for a receipt? If you kept track of how much each parent paid you, give each parent a separate receipt for the amount they paid you. If you didn’t keep track, give each of them the same receipt and mark “Duplicate” on each receipt.
What if the grandmother or boyfriend wants a receipt? If they paid you for child care, give them a receipt, even if you suspect they aren’t entitled to claim the child care tax credit. They paid you, give them a receipt.
If the parent leaves in the middle of the year, give them a receipt at that time for how much they paid you for a partial year.
No matter who you gives your receipt to, always have the person to sign one copy and keep a copy for your records.
Tom Copeland – www.tomcopelandblog.com
Image credit: www.telegraph.co.uk