Holding deposits

[mickyc]

I would write the receipt in the year you received it. That is what my accountant told me to do. My last pay of the year is on dec 24th, it covers the last week of dec and the first week of jan- I claim it in this year as I received it this year (and cashed it this year).

In all honesty I don't think it really matters. You claim your income and it all works out in the end. It's not like that one deposit is going to change your income by a significant amount.

[Busy ECE mommy]

My accountant told me to claim it in the year it was given/cashed.

[babydom]

I was told to claim in the yr it's used. So that's what I do

[kindertime]

There are 2 types of accounting (that I know of.) One where you claim amounts the year you receive it; and the other is when you earn it. I claim when I received it. Parents pay me in advance for 2 weeks at a time. So if payday is Dec. 30, but they are paying for Jan 2-13, I claim in the previous year. I can't speak to deposits, that's completely illegal here, but I would guess if they gave you a deposit in Sept. and keep their spot and they come to daycare in Jan., then claim it for Sept. and give them the 2015 tax receipt.

[playfelt]

I have always been told it is to be claimed in the year that it is received. It is your income and in your possession and as a cheque it is dated immediately and cashed so you have the income and should be claiming it that year regardless of when care starts.

[Lee-Bee]

I have always been told it is to be claimed in the year that it is received. It is your income and in your possession and as a cheque it is dated immediately and cashed so you have the income and should be claiming it that year regardless of when care starts.

While you received the money, technically since it is a deposit for the last weeks of care it is supposed to be set aside until those last weeks of care...so despite being in your possession it is not yet your income.

[Crayola kiddies]

^^^^exactly^^^^^

[Suzie_Homemaker]

You can give receipt for deposit, and they can claim expense in year they paid it, but we not have to declare income until earn it. So if you apply deposit to first week care, that is the year you add into income. If you apply deposit, last week of care, then add it into income for year they leave. This might me many years away.

Some give me deposit in Nov 2014 for Sept 2015 start. She is 10 month old and start this week. She will not go school until Sept 2019 so if still here when age out, 2019 is when I declare as income because apply to final week care.

[5 Little Monkeys]

Thanks Suzie! I thought that is what I read. I've been doing it wrong, hopefully won't cause an issue!

So just to clarify, if payment is Dec 25 for 2 weeks, than we should be claiming only until the 31st and the remainder the following year?

[Suzie_Homemaker]

Thanks Suzie! I thought that is what I read. I've been doing it wrong, hopefully won't cause an issue!

So just to clarify, if payment is Dec 25 for 2 weeks, than we should be claiming only until the 31st and the remainder the following year?

Yes. This what I do.

My client pay bi-week in advance. Fees paid on Monday 28th Dec cover until Friday 8th Jan. Tax receipt for 2015 will include 28th-31st fee and rest apply to 2016 receipt.