Cleaning Receipt
A cleaning receipt is a written payment record proving a client of cleaning services paid the provider for the services. The provider only issues this receipt after receiving the payment. Cleaning receipts apply to cleaning services in private homes, office buildings, and community spaces. Cleaning receipts are valuable to both the provider and the customer. They allow the provider to maintain accurate financial records and the customer to claim relevant personal or business income tax deductions.
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Who Uses a Cleaning Receipt?
A cleaning receipt is helpful for a variety of residential and commercial services. Any business or freelance cleaning service provider can use one. These include but are not limited to the following:
- Carpet cleaning;
- Dry cleaning;
- Pool cleaning;
- Residential cleaning (housekeeping); and
- Window cleaning.
Are Cleaning Services Subject to Sales Taxes?
When a specialized cleaning business or an independent contractor renders cleaning services, the services are subject to state sales tax in the following states:
- Connecticut, Delaware (gross receipts tax), Florida, Hawaii, Iowa (non-residential), Kansas, Kentucky, Maryland (commercial), Minnesota, Nebraska, New Jersey, New Mexico, Ohio, Pennsylvania, South Dakota, Tennessee, Washington, and West Virginia.
The Nanny Tax
The IRS categorizes independent housekeepers as a type of household employee (instead of an independent contractor) when they earn a certain amount of money in a specific calendar year ($2,400/year or $1,000/quarter for 2022). For these cleaning workers, employers must withhold household employment taxes, casually referred to as “the nanny tax.” The nanny tax applies to the employee and the employer. Both are responsible for paying federal and state FICA taxes (Medicare and Social Security). The employee is also responsible for paying federal and state income taxes, while the employer is responsible for paying federal and state unemployment insurance. If an employer accidentally misclassifies a household cleaning worker, they can be guilty of tax evasion.
What to Include
- Client name, address, phone number, email address;
- Company name, address, phone number, email address, website (if applicable);
- Description of cleaning services rendered and additional expenses incurred;
- Expense amounts;
- Payment method (cash, check, credit card, other);
- Receipt number;
- Service charge;
- Service date(s);
- Square footage of the cleaned space (if applicable);
- Tax rate (if applicable);
- Total tax amount (if applicable);
- Total amount due;
- Total balance due (if applicable); and
- Transaction date.