Are late fees considered "taxable"

[playfelt]

I include late fees on the receipt. Parents will be claiming it on their taxes as money paid out for childcare so the safest thing is to have also claimed it as income. In the grand scheme of things it won't effect your bottom line tax wise enough to take the risk of not claiming it.

The only exception I had was when my own kids were in the 12 and up age range anytime a parent was late they paid my child directly in cash only for "babysitting" because they were the ones watching them in the playroom while I made supper. They did not get a receipt for it and income wise the kids didn't make enough to file. I had receipts to match the cheques I received. With a cash payment there is no record to either party of money paid or received. That is one reason why caregivers require cash in hand at pick up for late fees. Then it comes down to a moral question of job related or not.

[angelina]

in all legality, late fees are taxable.

however, i'm a bit of rouge here. my client is seldom late, so when she is, i ask her to get me something - if she is in coffee shop, bring me coffee; if in grocery, bring me bunch of bananas, or pretty much anything to make me feel better, "maybe bribe me to be nice to you " when you get here. That is also because we have a warm and friendly relationship, this is my year 2 with her, and we tend to get along great.

however, this maybe different for those with agencies. is it billed through the time sheet?

receipts issued are only the regular rates stated in the contract which is pretty much same every billing cycle.

angie