A question for everyone; is it more worthwhile to be reimbursed for the money I spend on child activities/etc., or should I deduct it on my taxes? I understand for deductions it has to be over 2% of what one makes in a year? For reference; I make 16800 per year at my current hourly rate and hours. I have a great contract and I'm happy with my family - I am just wondering if I should take the money they offer to reimburse for things I buy, or if I should simply deduct it from my own taxes. PROBABLY A LITTLE JUMBLED - Feel free to reword if needed! Basically I want to know, if I only make $16,800 a year, and 2% of that is like $336, should I take them up on their offer to reimburse for supplies I buy, or should I deduct it on my own?
10 comments:
The parents should give you money UP FRONT for activities for the children.
This can be accomplished with a petty cash fund. Get receipts for all money spent, and turn those in each week. If no money is in the fund, no activities occur.
I am astonished at the number of nannies who pay for their charges' activities. That's crazy!! They are NOT your children. Their parents pay for their outings, or they don't go.
Village is 100% correct. I cannot imagine expecting my nanny to front money on a regular basis and am always apologetic if I forget to keep adequate cash available. I expect to pay for everything including costs for my nanny to do the activities with my kids (food for her, etc). I even pay for my nanny's child if her child goes along. I would never want money to be a reason my nanny could not do an activity.
It will never be worth the deduction IMO. That is just less money you are paying taxes on and won't ever be the same value as the absolute money spent.
I agree with the above. I have always asked for a prepaid credit card (like the Visa kind you can find at Walmart) with $100 on it for craft supplies, outings, etc, and then placed the receipts for the things bought in a folder inside of the Nanny book I keep at their home. I've never had a parent have a problem with this arrangement and highly recommend it's ease of use.
you can't deduct it on your taxes as you are W2 income not 1099
OP here.
Let me clarify- They pay for activities the children, I do NOT pay for activities.
I'm talking about when I go buy crafts for us to do, paints, etc. I buy our supplies during my off time, because I do not feel like paying outrageous prices to buy them near my work, and with 2 little ones with me at that. :P It just is too much of a hassle to lug everything up/down/around stairs doorways finding a place to put it, yada yada.
MB and DB have ALWAYS paid fairly for things we were going to do, etc. They even reimburse my tickets for bus/train, etc, and pay for me to do activities with the kids.
I really don't feel like for my situation it's necessary to have a prepaid card or petty cash fund, seeing as I do keep track of my expenses in regards to the supplies I buy for crafts, gifts, etc. Anything I buy for the kids I keep track of.
However if I absolutely cannot deduct these things from my taxes, I will simply have them reimburse me for the supplies and we will figure out a place to store the supplies.
It just seems easier to have the parents reimburse you. But usually parents have petty cash around so you can buy things on your own or if you purchased something on your own you can be reimbursed right away. But since you said it's not necessary for you just keep track of your purchases.
W2 employees can write off work related expenses on their taxes. Clothing for work, supplies, etc.
I'm still not quite understanding this post. Why don't you just ask the parents to buy supplies in advance? It is their children and their house and they'll be paying for it in the end anyway. I mean, if it is something very specific for a Mother's day gift (for example), I can understand you wanting to pick it out yourself, but otherwise just say "Hey will you pick up some finger paint next time you go to the store?"
Op, if you deduct your work related expenses and you can, it won't make a difference. Because at your income level you're not paying taxes anyway. Being reimbursed is a 100% return.
RE-post for Anonymous...
Its really not beneficial to a Nanny at all to use her own income- which sounds to me in your case is ridiculously low- to be shelling out your own money and waiting to be reimbursed later. The parents should always pay- if anything they are making 3 times as much as you for one, and for two, its just inappropriate for the Nanny to have to "ask" for her own money back. In many cases you just write it off because you don't want things to seem uncomfortable and in the mean time screw yourself. Honestly the standard should be that the parents provide you a weekly budget, petty cash, or a debit/credit card for expenses, activities, excursions, or food with the children throughout the week. Btw- it sounds to me like this family is Cheap- 16,000 a year? Thats cheaper than what they'd be paying to have their kids in daycare! Why are you doing this for such low pay exactly?
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