Could I watch my friends' kids in my home w/o a license?

[freespirited]

I am trying to think of ways to bring in some income and I was thinking about proposing to my friend that I watch her two kids instead of them going to daycare. She's also hurting for money so I was going to offer her a discount. Would I be able to watch these kids in my home without a license? It would be approx 20 hours a week and would only be those 2 kids, plus my 2. As far as taxes go, would I be able to say I had a home business, or would I just say it was "babysitting" income? Also, do people write-off childcare expenses even if they are making a lot of money? If so, would it need to be a licensed childcare provider in order for the write-off to be legit for my friend, or does the IRS care about that? TIA for any info.

[Hey Mama!]

As far as being able to watch children in your home without a license, yes you can as long as it does not exceed 4 that are not related to you. I don't know about paying taxes etc.

[katheek77]

Check your state's laws. I know here in PA, if you're watching three or less kids (unrelated to you), you don't need a license.
Don't know about the IRS stuff....

[A&A]

If you don't pay taxes on the income, then no, she can't write it off. I think that if you do pay taxes on it, she should be able to write it off, but I'm not an expert.

[cristeen]

It really depends on your location - state, county and city laws. I know when I looked into it for myself, I could watch several children, so long as they are all related to each other without a license. As soon as I took on 1 more un-related child though, I would require a license.

[polyhymnia]

I used to do very part time babysitting for a family who paid me out of their Childcare Flex Spending Account (whatever the real name for that is..), it was part time enough that I didn't pay taxes on the money (too small of an amount) but they were able to claim my expenses out of their fsa just by having me sign a receipt.

[yukookoo]

in ca it's more than 1 unrelated child requires a license

so yes you would need a license to be watching 2 children not related to you.

[April411]

in ca it's more than 1 unrelated child requires a license

so yes you would need a license to be watching 2 children not related to you.

I thought you only needed a license if you care for the children of more than one family.

[April411]

found a link

http://www.ccld.ca.gov/PG411.htm

In Ca:

* You must be licensed if you care for children from more than one family and who are not related to you.
* You don't need a license if you care for your children (or those of a relative), and children from only one other family.

So no, you wouldn't need a license

You should check your state's licensing website though as the law may be different

[yukookoo]

o wow that's great! I misread it I guess.

What would you guys say about 1 child at a time. I mean, say I have 1 child 4 hours in the morning and 1 child 4 hours afternoon, 2 different families?

And also what's the difference between tutoring then and childcare, assuming I am teaching a skill.

Sorry don't mean to hijack

[enkmom]

In my state, being licensed allows you to list a certain percentage of food and transportation costs for the children you watch as a business expense.

I watched my nephews when they were younger. I gave my sister a receipt every week when she paid me. She took the child care credit on her taxes and I reported the money as income, but it was my understanding that BOTH of us had to do this. If she took the credit, I had to report the income. I had to give her my social security number so that the IRS and State could cross-reference that the amount she was claiming was the same as the amount I was reporting. I trusted my sister, but I would be wary of giving my SS# to anyone else. I could have avoided this by incorporating myself and getting a tax ID number.

[freespirited]

Thank you for all the responses. I just checked the Idaho website and no license is required to watch 1-6 children in your home! : I think two would be my personal limit, though! Good to know. The extra money would be very welcomed.

[freespirited]

Originally Posted by enkmom

In my state, being licensed allows you to list a certain percentage of food and transportation costs for the children you watch as a business expense.

I watched my nephews when they were younger. I gave my sister a receipt every week when she paid me. She took the child care credit on her taxes and I reported the money as income, but it was my understanding that BOTH of us had to do this. If she took the credit, I had to report the income. I had to give her my social security number so that the IRS and State could cross-reference that the amount she was claiming was the same as the amount I was reporting. I trusted my sister, but I would be wary of giving my SS# to anyone else. I could have avoided this by incorporating myself and getting a tax ID number.

That makes sense. I kind of figured that but wasn't totally sure. Thanks.

[Drummer's Wife]

yeah, it totally depends on your state. I believe in mine, you can watch up to 4 children w/o being licensed. I lived in CO and there it was 2 kids who were related (I think).

also, with the 6 kids being allowed in Idaho, it probably includes your own. I know you are only planning on watching the 2. Just mentioning it, though.