Year-end daycare tax statement generator

Why parents ask for a year-end statement

Parents who pay for child care so they can work may be able to claim the child and dependent care credit on IRS Form 2441, or get reimbursed from a dependent care flexible spending account (FSA) through their employer. Either way they need, for each care provider, the provider's name, address, taxpayer identification number and the amount paid. A one-page statement for each family gives them all of that in one place and saves you answering the same question in every family's inbox each February.

There's also an IRS form for this. With Form W-10 (Dependent Care Provider's Identification and Certification), a parent can ask a provider for their name, address and TIN. Some families or FSA administrators will ask for it in addition to your statement. This statement isn't something you file with the IRS. It's a record for the family.

How to fill it in

1. Enter your own details once: your name, business name, address and phone.
2. Decide how to handle your taxpayer ID. You can type it, or leave it blank and write it in by hand after printing.
3. Enter the family: parent or guardian names, the children in your care, the tax year and the total they paid you that year.
4. Check the preview, then choose Print / save as PDF. The page prints only the statement, sized for one US Letter page.
5. Sign and date it, give it to the family, and keep a copy for your records.
6. Click Next family. Your provider details stay, and the family fields clear.

SSN or EIN?

If you run your daycare as a sole proprietor, you can give families your Social Security number. Many providers prefer to get an Employer Identification Number (EIN) from the IRS, which is free, and use it on paperwork instead, so their SSN isn't passed around. You can apply online at irs.gov. Whichever you use, it's the number families enter on Form 2441.

Which payments go in the total?

• Include what this family paid you for child care during the year. The statement says amounts are based on payment dates, which is how most providers keep their books.
• If a state or county subsidy program paid part of the cost directly to you, that part wasn't paid by the parent. Leave it out of the total and tick the subsidy note.
• If a payment was for care in a different year (say, December care paid in January), mention it to the family. Their tax preparer handles the timing rules.
• Check the total against your own records (receipts, ledger or bank deposits). It should match the income you report yourself.

When to hand them out

There's no IRS deadline for giving families this statement, but they'll need it when they file. Many providers hand statements out in January along with the first invoice of the new year. Families who leave during the year appreciate getting one when they go.

Your privacy

This generator is a single static page. The form and preview are built by JavaScript running on your device. There's no server to send data to, no cookies, no analytics and no saving to browser storage. If you'd rather not type a taxpayer ID into any web page, leave it blank and write it on the printed copy.

A few habits that save trouble

• One statement per family, even when siblings are in care. List every child on it.
• Match your receipts. If you gave receipts during the year, the total should equal their sum, less anything refunded.
• Keep a signed copy with your own tax records, in case a family or the IRS asks later.
• Separate parents? If two households each paid part, give each one a statement for what they paid.

Sources

• Instructions for Form 2441, Child and Dependent Care Expenses: irs.gov/instructions/i2441
• Form W-10, Dependent Care Provider's Identification and Certification: irs.gov/forms-pubs/about-form-w-10

General information, not tax advice. Your tax professional can confirm what to include for your situation.