Daycare Tax Tips

Hardship prevents some parents from paying their bill

Is this a tax-deductible loss?

A family child care provider writes:

> I have a daycare in Southern California and I have a family that went through financial hardship and wasn't able to pay their bill. This was back in March and I am no longer able to contact them with the info they gave me. Their bill is over $600. Am I able to write this off as a loss on my taxes? If so, how do I go about it? I would greatly appreciate any help you can give me!!

Unfortunately, I think this will be a common question this year.

It is no fun when parents can't pay what they owe, but there is no tax deduction for that. It just means that you have $600 less in taxable income to report, so your tax will automatically be lower.

Last updated on 18 January 2012

Posted on 2012-01-18 22:30:27