Originally Posted by Josiegirl:
If we aren't on the food program, would we deduct the cost of everything we serve or is it better to use the standard rates they pay us as a guideline? And is it merely 'a wash' if we are on the program? Is one way(on or off the food program) more beneficial than another?
Thanks!!
Providers are always better off financially if they join the Food Program!
You can deduct food expenses in the same way whether or not you are on the Food Program. You can use the standard meal allowance method to claim food expenses whether or not you are on the Food Program.
It's not a wash!
If you spend $4,000 on food and are not on the Food Program, you have a $4,000 deduction.
If you join the Food Program and receive $3,000 in reimbursements, you still deduct the $4,000 in food expenses.
So, joining the Food Program gets you $3,000 in income in this example. You will pay taxes on the $3,000, but you will still have a lot more money after taxes than before.
Get on the Food Program!
See my article:
http://tomcopelandblog.com/is-the-food-program-worth-it