In Home Day Care & Tax ? Please help

[pbharris4]

We're trying to get a loan modification on our home. The bank keeps saying they need my income tax return for the in home day care. I don't file it seperately. We've told them that.

I watch 1 child and for the last 4 years have included it in our joint return. I pay the taxes on it, do the Schedule C, the Profit/Loss, etc. I don't make much and the IRS has never balked or said anything about it. Am I doing something wrong is it the bank just using it as an excuse?

 

[ameraumi]

All you need is the Schedule C, so you are not doing anything wrong.

It sounds like the loan officer has not had a lot of expierence with home based businesses. If s/he continues to balk at it then I would ask to speak to someone else at the bank. All you need to provide is your tax returns.

 

[pbharris4]

That's the problem...everyone that we have talked to (about 4 or 5 different people now) keep saying we need your wife's return. He is going to have to ask for a manager next time he calls. Personally, I think the bank is stalling like they are doing to everyone else.

 

[ameraumi]

Just to be clear, you have given them a copy of your JOINT tax return that includes your Schedule C? Seriously that is all that is needed. I know this both from when we bought our house plus I worked in a bank in lending.

 

[pbharris4]

Just to be clear, you have given them a copy of your JOINT tax return that includes your Schedule C? Seriously that is all that is needed. I know this both from when we bought our house plus I worked in a bank in lending.

Yep 2007 & 2008 Joint Tax Returns with Schedule C's. Everything that goes with the Joint return. I think that they may think that I have a total separate business that I need to file for??

 

[tasha99]

When I did home daycare, all I did was add the schedule C. I think your bank doesn't know what they're doing.

 

[pbharris4]

I think it is a stall tactic to be honest.