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We’re here to make tax season as easy for you as possible. This article will outline what you need to do to prepare for tax season and what you can expect from brightwheel when you’re ready to file your taxes.
Please Note: If you are a parent looking to report on your early childhood education spending, please use the Student Transaction Summary export.
Table of Contents
There are a couple of key dates to keep in mind during and prior to the upcoming tax season. Completing the applicable tasks by the deadline listed below will help make filing your taxes as efficient as possible.
Dec 15th - Update and verify brightwheel billing account settings
Jan 31st - Receive Form 1099-K from brightwheel
April 15th - Tax Day! Final day to file your previous year’s taxes
Update and Verify Tax Information
When you signed up for brightwheel billing with your bank account info you entered some identifying information that will be included on your tax forms. Please take a moment to navigate to your Billing Settings page and verify that the following information is completed and up to date:
School contact information including phone number and address
Billing administrator's Name and DOB
The school’s Employer Identification Number (EIN), for corporations, OR the billing administrator’s Social Security Number for individual owned childcare homes/centers.
This needs to be completed by December 15th.
Please Note: If you have forgotten or misplaced your EIN, please reach out to the IRS directly for information on obtaining that number.
The IRS Form 1099-K is an IRS form to report on payment transactions made through a 3rd party payment processor, such as brightwheel billing. This report is generated by brightwheel and sent to you. It will only reflect online credit, debit, and ACH payments. Any payments made offline, including those you record on brightwheel such as cash or checks, or made through a platform other than brightwheel will not be included on your 1099-K.
As a brightwheel billing customer, you should receive Form 1099-K by January 31st if, in the prior calendar year, you processed:
Gross payments that exceed $20,000, AND
More than 200 individual transactions
If you used brightwheel billing but do not meet the above threshold, your school will not receive this form. In that case, you can use the reports within the billing platform for any revenue reporting needs.
If you believe that there is an error on your 1099-K, please start a conversation with our Support team.
Reporting for Schools
The Billing Transactions Report in brightwheel is the best place to find revenue and processing fee expenses. To get a detailed report for the year, enter the start and end dates to cover the entire year and click Create report. You can export this report as a CSV and use any spreadsheet software to filter the transaction types like online/offline payments, refunds, and voids.
This report can also be run for individual students, that you can use to send to parents for their own tax reporting.
Please Note: This publication is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual's legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your own attorney, CPA, and/or other advisors regarding your specific situation.