L.D. asks from Mount Prospect, IL on June 26, 2008
Starting Home Day care...what Is Needed for Proof for Flexible Spending Accounts
Hi, does anyone have experience in what I would have to provide (as proof) so that someone can use thier flexible spending account to pay me??? thanks!!!
More Answers
M.M. answers from Chicago on June 26, 2008
I used a home day care for my son and all I needed was the caregiver's SS#, plus a receipt listing dates of service and amount paid.
Good luck!
M.O. answers from Chicago on June 27, 2008
To protect yourself, I would look into getting a tax ID from the IRS for your business and it is recommended that you get licensed through DCFS as an in-home daycare. You will be liable for other people's children and you need to cover yourself.
A.S. answers from Chicago on June 26, 2008
Your SSN. But also....make sure you claim the income on your taxes, because with them using that then your income from that gets reported on your SSN.
K.S. answers from Chicago on June 26, 2008
I think all you need is to give them your SS #.
K.
N.M. answers from Chicago on June 27, 2008
I did home daycare for a while and all I needed do was give my SSN and, at the end of the year, provided parents w/ dates of service. They received weekly paid receipts from me as well, but the list of dates always helps during tax time. Stay organized using your computer -- either create your own receipts file or use Quicken, it's great. The tax breaks for having your in-home business are A W E S O M E. !!! I'd also advise keeping records of the groceries you buy for your daycare, mileage is also recommended, any home improvements made for the daycare (you can include new windows, doors, other improvements, am sure you can find a list on internet). It's really beneficial to do it above-board and to file taxes on the business, and made me and the parents more comfortable doing it that way. You will also have to check w/ your homeowners ins. re: liability, the premium for the home business is also write-offable on taxes, you will get some of that back. GOod luck!
Email