Receipts for NSF Fee

[apples and bananas]

I have my first NSF.

Since the additional fee that I charge is not care... do I give a separate receipt marking this as a receipt for an NSF fee? Or do I add it to the normal receipt? Does this fee could as income?

Thanks!

[Blackcat3168]

I am in the U.S but here any late fees and fees for NSF still count as income. I usually give a separate receipt for those types of things with a memo in the bottom stating what the receipt is for. No idea what parents do with them or even what they can do with them as far as deducting them but that's how I handle it.

[2cuteboys]

It does count in your income, but as it isn't for "childcare" it wouldn't go on their receipt from you.

If they even ask about it I'd make a separate receipt, like blackcat suggested.

[5 Little Monkeys]

Mmmm interesting. I had a NSF last year and gave the cheque to my accountant but she never asked if I charge a fee which I do. The parent paid me the bill and the fee but never asked for the fee to be included on their receipt and I didn't even think to add it.

I also charge a late fee but do not include that. Do others? I honestly never even thought about that.

[playfelt]

Whatever a parent pays me as part of the fee I give a receipt for.

[mimi]

I give a separate receipt for childcare and additional receipt that is not specific to childcare as the parent can not claim on their income tax the additional fees.

[playfelt]

Why could a parent not claim the fee on their taxes in the sense that it was incurred for whatever reason for care of the child. NSF maybe I can see that one but a late fee is simply a large amount per 15 minutes of care so they worked overtime and had childcare overtime at the inflated fee but it is still a fee for childcare in the sense that the child was in care while the fee was being incurred.

[mickyc]

I have never asked my accountant what I should be doing but what I have done is include any late pick up fees in my daycare receipts. I agree in that they are still paying for care at an increased rate. When it comes to NSF fees I did not give a receipt nor did I claim it. It has only happened to me once a couple years ago. As far as late payment fees I would likely not give a receipt for that either (or claim it as income either) although that has never happened to me either.

[mimi]

The additional receipt not specific to childcare is for NSF. This charge is not to be included in the childcare deduction.