Income tax and late fees

[Busy ECE mommy]

Hello all,
How do you deal with late parent pickups and claiming the late fees on parent income tax forms? Do you just add it in to the monthly/yearly totals on their tax receipts? Thanks.

[Busy ECE mommy]

I might add when I worked in a licensed centre, late fees were paid directly in cash to the staff working the closing shift immediately upon pickup, and this amount was not included in their tax receipts.

[5 Little Monkeys]

I'm not sure if it's right or not but I don't mark down the late fee's. Parents are aware of this prior to it though.

[bright sparks]

I would have thought you'd have to include any and all fees paid for childcare in their annual tax receipt. Regardless of whether it was contracted time or not, it is money they have paid for childcare to you????

[AmandaKDT]

I include it as part of the daycare fees they paid for the month and include it on their receipt for income tax purposes. It was a fee paid for a service, even if it is one I wasn't wanting to provide!

[Wonderwiper]

I include it as part of the daycare fees they paid for the month and include it on their receipt for income tax purposes. It was a fee paid for a service, even it is one I wasn't wanting to provide!


Exactly! It is a fee paid to you therefore you must legally claim it as a gift. It is not a fiver in your birthday card, it is income.

[playfelt]

It should be claimed as income but also when figuring out the number of hours of daycare be sure to add an extra hour to your total for working the overtime hour of care - it will totally benefit you down the road to claim and receipt the amount and then claim business use of home expenses for the additional hour.

[5 Little Monkeys]

Good to know! I've only had 2 families have to pay a fee but in the future I will include it in their receipt.