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.