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Tax Information for Child Care Providers

Memo to:  Montana Child Care Providers

From:  Patty Butler, Chief

Re:  2020 tax reporting year payments

I want to take a moment to share with you some information pertaining to tax records and information you may receive in the form of 1099s.

For the 2020 tax year, child care providers may receive two types of 1099 reports from the state. One being their usual 1099-N report for typical payment activity. The other will be a 1099-G for the Covid/CARES related payment.

The payments providers received must be reported by the state to the IRS as 1099-N or 1099-G.   Department of Administration (DOA) intends to issue 1099-G’s that will include a notice informing you of the reason you are getting a 1099-G, which is because you received CARES act money during the tax year.

We recommend contacting your tax professional for information on specific guidance for individual, or unique situations.  Please see the instruction below if you believe either of the 1099s to be in error.  This is the usual process to request a correction if you believe that a 1099 has been issued in error.

“Providers should either fax the fiscal department at 406-444-9763 or email at fiscalw9@mt.gov and include the EIN or SSN#. The department will need to know which form needs to be corrected (1099-G or 1099-N).    Provide as many details as possible as to why the 1099 is incorrect, including payment dates and amounts.  The department will also need to know who to contact and the email and/or phone number.  Fiscal will fill out the forms to request that DOA process a correction to the 1099.  Providers should also review and contact the fiscal department  as soon as they receive their 1099 so that DOA and fiscal have time to process the change before the April tax deadline.  The sooner, the better.”

Thank you.

Patty Butler

Early Childhood and Family Support Division

Early Childhood Services Bureau Chief

CCDF State Administrator

PO Box 4210\1625 11th Ave\Helena, MT\59601

406.444.1828

pbutler@mt.gov