I am homeschooling a friends child and being payed for it, how do I claim it on my taxes???
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I am homeschooling a friends child and being payed for it, how do I claim it on my taxes??? The girls are dropped off at 7am and picked up at 6pm. I provide bfast- lunch and two snacks. I do not have a day care! But it sounds like it. How do I claim these things on my taxes? How do they claim them on theirs?
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Answer:
From your point of view, you are being paid for work you are doing in your home. So your income goes on a schedule C. Out of pocket expenses for the school material can be deducted, but use of your home will be difficult. (you cannot deduct daycare use unless you are licensed as a daycare--and those extra meals are considered daycare type expenses). Your net income will be taxed as both income and for Self-employment purposes (another 15%). Your friend has a different problem. There is no deduction for tuition for grades K-12. For children under the age of 13, there is a child/dependent care deduction if care is provided before and after school (the fact you aren't licensed doesn't prevent this). The problem is that you must be able to give her an itemized bill that distinguishes between the time spent in school and the before/after care. By the way, homeschooling laws vary all over the country, but I thought every state required that for a child to be homeschooled, the home had to be the parent and so did the teacher!
mistyeve... at Yahoo! Answers Visit the source
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