Are daycare centers required to provide a year end statement of your account paid?

Question

I'm pretty sure they are required to provide their Tax ID number, but the daycare owner refuses to give us a statement of what we paid. I'm sure we can look back at our cancelled checks, but I have always received the year end statement in the past and was wondering if I should push the issue?

If so, can you provide the tax code or source for me to quote? Thanks!

Answer 1

They are required to provide their tax id number, but not a statement of what you paid them although many of them will.

Answer 2

As someone who was a tax preparer last year, we had to enter a tax id for daycare centers or the SSN of the person who was paid to care for them. Most of the local daycare centers would provide the parents with just a letter that gave them the Federal Id number -- but not necessarily a statement of how much they paid.

From the Jcakson Hewitt Website:
"Child Care Expenses & Provider Information

If you have a qualifying child under age 13, a disabled child of any age, or a disabled spouse, and you pay someone to provide care for them while you work, you may qualify for a tax credit of up to 35% of your expenses. You must provide the IRS with the care provider's name, address, and taxpayer identification number (TIN), which can be a Social Security number or an employer identification number (EIN). If the provider is a daycare center, the TIN is their EIN. If the provider is an individual, the TIN is their Social Security number. If the provider is a qualified church or non-profit group and has no EIN, the word Tax-Exempt can be substituted for the TIN. You should keep proof of payment receipts with your records."

Answer 3

Year End Statement

Answer 4

No, they are not required to give you a statement of what you paid. If your current provider doesn't provide a statement, don't push it as you have no legal basis to demand it.

It's up to YOU to keep track of what you paid them -- and if you want to get technical, you should provide THEM with a Form 1099 listing what YOU paid THEM. If you start pushing for a statement, they'll just demand a Form 1099 and then file a complaint against you with the IRS for late filing of the Form 1099.

They do have to provide their tax ID, however. You need that to claim the Dependent Care Exemption.

Answer 5

I'd be willing to bet that this day care provider isn't wanting to claim the income they got from day care.

You don't absolutely have to have a statement from them if you have cancelled checks and receipts. You do need to know that the IRS doesn't go by cancelled checks for proof of business expenses, and may not use them for this either. (Don't know why this is, but it's the government and they can do whatever they want.)

All the tax ID number is, is a Social Security number for individuals, and what they call an Employee ID number for businesses that have employees.

You may be able to go into your county's web site and do an EIN search from there. When I started my Bookkeeping business, I had to do an online search of business names and ID's so as to keep from accidentally using someone else's business name.

I suggest taking a look at the bottom line on the return without this expense, and then "make up" a name and id, put in the expenses BUT DO NOT FILE it--just put in the numbers and see how much difference it makes on the return. That way you will easily see whether it's worth the headache of tracking down the actual ID information. My guess is that it won't make very much difference if you don't claim this expense, because you only get to take a percentage of the actual expenses (with a limit of $2000 per child per year) off of your income, anyway.

If you do it this way, PLEASE, PLEASE, PLEASE go back in there and take out the phony information before filing the return!

Answer 6

They are not required, but they really should. It is just good business. Their tax ID number is needed and their address and amount paid for each child. This information goes on Form 2441 which calculates your childcare credit.

Answer 7

well since you recieved statements in the past i dont see why they would refuse.But on the tax id number i dont think they have to give you this.But if you request a reciept or statement of what you paid and they say no i would push this issue cause all there doing is saving thereselves tax money by not turning in the amount they made from you all year..i would push it because you can claim this on your taxes..It is bs and i would take them to court if i had to and they will be shut down by the irs...I NO THIS FOR A FACT OUR DAYCARE PROVIDER ALLOWS US TO CLAIM 1500.00 A YEAR WHICH GIVES US BACK MORE TAX MONEY..

Answer 8

I've never heard of this. If such a requirement exists, it probably varies by state so where you are would be helpful information.

Answer 9

They do not have to give you and end of year statement. I never had to give an id number just the name of the daycare.

Answer 10

my friend who runs a daycare has quite a few strict guidelines she has to follow, but then again they only know what you tel lthem and they see, I love her to death, but considered turning her in this past year, (undisclosed medical condition) as I thought she was not able to take care of the children properly should something arise.