I am homeschooling a friends child and being payed for it, how do I claim it on my taxes???

Question

I am homeschooling a friends child and being payed for it, how do I claim it on my taxes??? The girls are dropped off at 7am and picked up at 6pm. I provide bfast- lunch and two snacks. I do not have a day care! But it sounds like it. How do I claim these things on my taxes? How do they claim them on theirs?

Answer 1

I agree with answer that you should claim it as daycare.  I don't know of any states that have rule that you can't keep a limited number of children without a license but most states limit homeschool to teaching your own children.

Answer 2

You may not be able to claim the expenses because it would be difficult to prove the cost, and because you don't have a business license.

However the IRS does have a tax form for reporting miscellaneous income, its known as the 1099.

http://rds.yahoo.com/_ylt=A0oGkw2Xg4FI3L...

Answer 3

Unless you have a teaching degree, the safest thing to do would be to claim it as childcare.  It is the legal right and responsibility to educate your child.  In many places it is illegal to teach school (to other children) unless you have a teaching license.

Answer 4

I think perhaps you should contact the IRS and/or HSLDA to determine what is the best step to take here.

Answer 5

for the federal form 1040, you would complete a Schedule C. There are places for income (what your friends pay you) and various categories of expenses.

There is a special way of calculating deductible costs for childcare facilities, and I don't know if you could claim them, since you are running a school rather than a child care facility. But read the instructions that come with the forms.

There is a place on Schedule C for the type of business you run. But it's up to you to decide what that business is. I can't imagine the IRS disputing whether you are running a school or a child care business.

Answer 6

You need to check out the Home School laws for your state about Home schooling. I have a link on my web page for this (listed below). As Far as Taxes you can e-mail hslda . They are a Legal Defense organization for home schoolers. I have listed their web site below.  Home School.com has a list of groups or home school organization for each state. (Key in under groups on the web Page) They should be able to help out  with these questions too. I do not want to give you legal advice or counsel about taxes because I may be giving you the  wrong advice. These organization should be able to help you out. The government is not some one you want to have on your bad side.  Cover all you bases before make a decision

Answer 7

I've done that before (homeschooling other's children) because it is legal in my state.  I used the forms for "self-employment" to list the money earned.  I think I listed it as "tutoring".  If you list it as childcare you might need to have a license or something, so be sure to look into that sort of local regulation.  Of course, if they list it as "childcare" on their taxes, it would be best for you to list it as such, too, in case there is ever an audit.

As for the co-op, usually fees for co-ops cover a variety of things including supplies, the teacher's time and effort (unless everyone is taking a turn at teaching), facility rental (if appropriate), advertising (if appropriate).  I doubt that you can claim it on your taxes; I've certainly never tried.  

Sounds like you might need to talk to an accountant to find out these details for sure.

P.S. I've never heard of it being illegal to teach other's children without a license.  I first tutored other students when I was a highschool student and I certainly had no license then.  Few of the private schools in our area require teachers to have a license; our state doesn't require private school teachers to have a license, so how could it be illegal to teach without one?  And even in the public schools, they've sometimes hired teachers who do not have certification and have granted them emergency certification, so the public schools get around it when they want to, too.