Dependent Care expenses

ghsadmin · ‎January 28, 2019

I have a 43 yr old child that I pay ALL expenses for. I have been recording her expenses and payments for these expenses in QuickBooks 2017 with her being a 'Customer'. I don't know if this is what I should be doing to document her expenses that I'm paying for. 2018 TurboTax indicates that I can record her as a dependent on my taxes. How do I show in QuickBooks, other than the way I'm doing so (as a customer) to the government?

Anonymous · ‎January 28, 2019

Hello, ghsadmin.

Recording expense transactions in QuickBooks can be done by creating bills and checks. You can set your child as a vendor in your QuickBooks then create check every time you’re recording her expense.

Lastly, you can run the Transactions list by Vendor (Report>Vendors and Payable>Transaction List by Vendor) to view all the expense you’ve recorded for your child.

Moreover, it’d still be best to consult your accountant about this concern.

Thanks for dropping by.

qbteachmt · ‎January 29, 2019

If this QB File is business, none of this is business. It's Personal. Every "expense" paid from business for Personal is not Expense. It would depend on the entity type, as Owner Draw or as Taxable Benefit through payroll, or as the Payroll Provision for employee child care allowance to the max for that tax year.

Using Business Money doesn't turn all spending into Business Expense. Personal still is personal.

It's time to meet with your own accountant.

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