These items are important. The IRS will compare your return with statements received from the businesses and summer camps your child attended. If the IRS finds any differences, you may receive a letter advising to review and send proper documentation for explanation and/or adjustment of the return.
When you have a Child care deduction for daycare, summer camps or summer events for children, we need the following information to be provided:
- Name of business or camp
- Business Federal Employment Identification Number (FEIN) or Social Security Number of provider
- Some Businesses provide a W-10 for this
- Address of business
- Phone number of business
- How much you paid to the business or camp for each child
- Which child attended?
If you pay cash for a service please collect a signed receipt for each payment. Even if you have a receipt the IRS or Oregon Department of Revenue may disallow the cash payments in an audit situation.
As always if you have any questions or concerns about what may be qualified as an expense, Please feel free to contact the office.
AccounTax of Oregon Staff