Many taxpayers pay for some form of childcare to ensure the safety and care of their children while they work to earn a living. Childcare refers to anyone, related or unrelated, who cares for your child(ren), ages six weeks up to thirteen years old, inside or outside of your home. If the care is outside of your home, it may take place at a commercial site or the provider's home. Examples include: daycare centers, home daycares, pre-schools, before school care or after school care for school-aged children, summer camp, etc.
Establishments which operate as formal businesses must provide their clients with an end-of-year statement or summary itemizing the monies paid to them from you or another party on your behalf. This statement is usually provided to the childcare client between the first and last week in January of each year for the previous calendar year. The information provided to you should include the name and address of the business, as well as their Employer Identification Number (EIN) number.
Individuals providing childcare services in their home or the child's home, usually referred to as "babysitting", must provide an end-of-year statement or summary to their clients as well. Individuals have the option of providing an EIN number or their Social Security Number (SSN) on their end-of-year statements. We, Contemporary Tax Specialists, recommend individuals who provide childcare services to obtain an EIN number from the IRS so as to not unnecessarily expose their SSN to anyone.
If you, or anyone you know, needs assistance with obtaining an EIN or have questions regarding childcare credits or any other tax related issues call, text, e-mail us, or complete our contact form on this site's home page. Our goal is your success!