(Closed) Is it common for a daycare to not claim taxes?

posted 3 years ago in Parenting
Post # 2
Member
13522 posts
Honey Beekeeper
  • Wedding: November 1999

If they run a business (not a nonprofit), they have to file taxes.  (Not a CPA/tax lawyer, though).  I think this is a little shady, and I think they could get in some serious problem for tax evasion.

Post # 3
Member
2184 posts
Buzzing bee

kb7:  If they’re openly lax about tax obligations and breaking those laws, what other standards are they going to treat as no big deal?

Post # 4
Member
63 posts
Worker bee
  • Wedding: January 2017

NO! What they are doing is more than likely illegal. I would call your local licensing / childcare resource and ask for rules and regulations regarding ratios for age groups and ask the sisters to see their license. 

Post # 5
Member
2701 posts
Sugar bee

Her rates are about $10/week cheaper ($520 per year or so) but you forfeit a $3000+ deduction in the process. It’s shady and not beneficial to you at all.

Post # 7
Member
3332 posts
Sugar bee

It might be common practice (I don’t know) and also illegal at the same time (which it is.)

Post # 8
Member
2701 posts
Sugar bee

kb7:  Yes, it’s not too unusual for in-home sitters. They don’t want to claim the income.

Post # 9
Member
7731 posts
Bumble Beekeeper
  • Wedding: October 2010

Both my girls were in licensed home day cares. Do not go with someone who is trying to cheat the system. Go with a professional who runs a business. Plenty of home day cares are legitimate and will report their taxes and give you a report of  your payments at the end of the year for your tax purposes.

Post # 10
Member
1740 posts
Bumble bee
  • Wedding: June 2016

Yea, I think it’s pretty common.  And of course it’s illegal.  Just like how it’s common, but illegal, for people to cut grass, clean houses, do handyman work, etc. for a living.  The primary difference, at least in my opinion, is that babysitters are taking care of children, not grass or houses.  Thus I believe that it is much more important to be vigilant about how the babysitters run their business, and if and if they are up to date on first aid, nutrition, child well-being, etc.

Post # 11
Member
710 posts
Busy bee
  • Wedding: October 2016

kb7:  red flags!!!  If they haven’t done the homework to file taxes they are not on the up and up. Someone who isn’t scared of a federal crime won’t be scared of other crimes either. Just be mindful of who you are placing your child with, if they are certified too…. I had a teacher who placed her baby with a sitter at her home and the sitter wasn’t watching and the baby strangled in a highchair strap. 

Post # 12
Member
2701 posts
Sugar bee

(Mind you, we don’t want new Mama Bee to be terrifed, do we?)

Post # 13
Member
4260 posts
Honey bee
  • Wedding: February 2009

I think it is pretty normal for home run day cares.  My primary concern would be how they care for my child.

Post # 14
Member
710 posts
Busy bee
  • Wedding: October 2016

leilarobs2:  terrified, no… Well informed and unjaded, yes 

Post # 15
Member
2682 posts
Sugar bee
  • Wedding: September 2014

MelissainNC:  this was my thought as well. We pay our gardener cash. I have no idea if he declares all of his income or not, nor do I particularly care. 

But, for a childcare provider, I would absolutely want to know that they were on the radar and being regulated from a safety perspective. 

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