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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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  #1  
Old 01-26-2011, 12:00 PM
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Default Food Program & Standard Meal Deductions

I am on the food program-get reimbursed each month-so this is claimed as income and taxed? So on the standard meal deduction I can claim EVERY meal I serve? Or just the meals that aren't reimbursed by the food program?
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Old 01-26-2011, 12:18 PM
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Yes, what you get from the food program is counted as income. You can claim all meals you serve, whether they were reimbursed through the food program or not. You can look up the standard meal allowance on irs.gov.
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Old 01-26-2011, 03:42 PM
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Default Food Program

I've written a recent blog post "How to Claim Food Expenses" at http://www.tomcopelandblog.com/2011/...-expenses.html
See another blog post of mine "Are CACFP Reimbursements Taxable Income?" at http://www.tomcopelandblog.com/2011/...le-income.html

Yes, you can claim every meal and snack you serve even if it's not nutritious.
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Old 11-17-2012, 09:33 PM
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Originally Posted by TomCopeland View Post
I've written a recent blog post "How to Claim Food Expenses" at http://www.tomcopelandblog.com/2011/...-expenses.html
See another blog post of mine "Are CACFP Reimbursements Taxable Income?" at http://www.tomcopelandblog.com/2011/...le-income.html

Yes, you can claim every meal and snack you serve even if it's not nutritious.
"What's most important, however, is to keep a daily record of all meals and snacks that are not reimbursed by the Food Program. You don't need to keep a menu. These non-reimbursed meals and snacks do not have to be nutritious. If you serve a popsicle in the afternoon, it's a snack! I'm not advocating that you serve junk food, but if you do, it's deductible. Do your best to record these non-reimbursable meals and snacks because it adds up: One non-reimbursed snack a day is worth $171 a year per child!'


I thought you said that we could count the food program as income and then use the standard deduction for meals and snacks? Not just the "non-reinbursable" correct?
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Old 11-18-2012, 09:58 AM
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Default Food expenses

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Originally Posted by LaLa1923 View Post
"What's most important, however, is to keep a daily record of all meals and snacks that are not reimbursed by the Food Program. You don't need to keep a menu. These non-reimbursed meals and snacks do not have to be nutritious. If you serve a popsicle in the afternoon, it's a snack! I'm not advocating that you serve junk food, but if you do, it's deductible. Do your best to record these non-reimbursable meals and snacks because it adds up: One non-reimbursed snack a day is worth $171 a year per child!'


I thought you said that we could count the food program as income and then use the standard deduction for meals and snacks? Not just the "non-reinbursable" correct?
Reimbursements from the Food Program are taxable income. There is an exception: reimbursements from the Food Program for your own children are not taxable income. Food eaten by your own children (or you at home) are never a business deduction. If you use the standard meal allowance you can deduct all the meals and snacks you are reimbursed by the Food Program (except those for your own children) and other non-reimbursed meals and snacks as well. The total number of meals and snacks per child in a day cannot be more than 1 breakfast, 1 lunch, 1 supper and 3 snacks.
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Old 11-30-2012, 05:23 PM
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Default taxes

Is there a tax form we can fill out to have ready when we bring our taxes to be done?
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Old 11-30-2012, 05:48 PM
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Originally Posted by TomCopeland View Post
Reimbursements from the Food Program are taxable income. There is an exception: reimbursements from the Food Program for your own children are not taxable income. Food eaten by your own children (or you at home) are never a business deduction. If you use the standard meal allowance you can deduct all the meals and snacks you are reimbursed by the Food Program (except those for your own children) and other non-reimbursed meals and snacks as well. The total number of meals and snacks per child in a day cannot be more than 1 breakfast, 1 lunch, 1 supper and 3 snacks.
I have a very hard time understanding taxes.

So, we should save our receipts for daycare food (EVEN IF WE ARE REIMBURSED THROUGH THE FOOD PROGRAM) to use as a business deduction if we have no children eating the food? Or, if we are reimbursed then we cannot use it as a deduction?
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Old 11-30-2012, 06:05 PM
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Default Food and taxes

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Originally Posted by EntropyControlSpecialist View Post
I have a very hard time understanding taxes.

So, we should save our receipts for daycare food (EVEN IF WE ARE REIMBURSED THROUGH THE FOOD PROGRAM) to use as a business deduction if we have no children eating the food? Or, if we are reimbursed then we cannot use it as a deduction?
If you use the standard meal method to claim food expenses, you don't need to save any food receipts. You are always entitled to use this method even if you aren't on the Food Program. So, whether or not you are on the Food Program will make no difference in how much you claim in food expenses. If you are on the Food Program you can count the meals and snacks you get reimbursed as part of your food deduction. So, get reimbursed for breakfast, claim in as a food deduction. Serve an afternoon snack that is not reimbursed by the Food Program? Claim it as a food deduction.
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Old 12-22-2012, 08:06 PM
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So the standard meal allowance for taxes we can use 1 breakfast, 1 lunch, 1 supper, and up to 3 snacks a day per child IF they were in attendance and served those? Being on the food program pretty much just gives us their own rules and income so we can forget about whether we were paid for all the meals we claimed because we can claim up to the 3 meals and 3 snacks a day per child like you said if I understand. So is their a chart that is easy to track these? I know all year I've done a morning snack that I can't claim so I have B, S, L, S each day for all the kids. So I just have to go back to my attendance records for the year and handwrite down how many, but for next year I would like an actual chart. Do you have recommendations on how to do that? Also, if I have an infant in care and I feed them 5-6 bottles a day does that mean I would claim a breakfast, snack, lunch, snack, and snack since it's over the hours of 7-5?
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Old 12-24-2012, 01:12 PM
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Default Standard meal allowance rule

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Originally Posted by Abigail View Post
So the standard meal allowance for taxes we can use 1 breakfast, 1 lunch, 1 supper, and up to 3 snacks a day per child IF they were in attendance and served those? Being on the food program pretty much just gives us their own rules and income so we can forget about whether we were paid for all the meals we claimed because we can claim up to the 3 meals and 3 snacks a day per child like you said if I understand. So is their a chart that is easy to track these? I know all year I've done a morning snack that I can't claim so I have B, S, L, S each day for all the kids. So I just have to go back to my attendance records for the year and handwrite down how many, but for next year I would like an actual chart. Do you have recommendations on how to do that? Also, if I have an infant in care and I feed them 5-6 bottles a day does that mean I would claim a breakfast, snack, lunch, snack, and snack since it's over the hours of 7-5?
You can only deduct meals and snacks that you actually serve. Up to a maximum of 6 per day per child. You can use the Minute Menu software to keep track or there is a chart created by Redleaf Press (on their Calendar Keeper). Or you can mark these extra servings on your copy of the Food Program monthly claim form. Yes, claim your infant meals/snacks the way you listed them.
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Old 01-03-2013, 07:45 AM
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What are the standard deductions for breakfast, lunch, snack and dinner. I have kept records of how many of each I have served but does anyone have the numbers hansdy so I can calculate this? Thank you!!!!
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Old 01-03-2013, 07:57 AM
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Originally Posted by momofboys View Post
What are the standard deductions for breakfast, lunch, snack and dinner. I have kept records of how many of each I have served but does anyone have the numbers hansdy so I can calculate this? Thank you!!!!
http://www.fns.usda.gov/cnd/care/Pro...ents/Table.pdf

Effective from July 1, 2012 - June 30, 2013

Breakfast
Tier 1 $1.27
Tier 2 $ .46

Lunch/Supper
Tier 1 $2.38
Tier 2 $1.44

Snack
Tier 1 $ .71
Tier 2 $ .19

Hawaii and Alaska are different as well as centers.

HTH
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Old 01-03-2013, 09:24 AM
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Default Standard meal deduction

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Originally Posted by Blackcat31 View Post
http://www.fns.usda.gov/cnd/care/Pro...ents/Table.pdf

Effective from July 1, 2012 - June 30, 2013

Breakfast
Tier 1 $1.27
Tier 2 $ .46

Lunch/Supper
Tier 1 $2.38
Tier 2 $1.44

Snack
Tier 1 $ .71
Tier 2 $ .19

Hawaii and Alaska are different as well as centers.

HTH
The numbers above are what providers currently receive from the Food Program, not what you can deduct as a food expense. Under the standard meal allowance rule for 2013 you can deduct $1.27 for breakfast, $2.38 for lunch/supper and $.71 for a snack. For 2012 you can deduct $1.24 breakfast, $2.32 lunch/supper and $.69 snack. Alaska and Hawaii are higher.
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Old 01-03-2013, 09:42 AM
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Originally Posted by TomCopeland View Post
The numbers above are what providers currently receive from the Food Program, not what you can deduct as a food expense. Under the standard meal allowance rule for 2013 you can deduct $1.27 for breakfast, $2.38 for lunch/supper and $.71 for a snack. For 2012 you can deduct $1.24 breakfast, $2.32 lunch/supper and $.69 snack. Alaska and Hawaii are higher.
Hmm, thanks for clarifying that.

I just got the link e-mailed to me by my sponsor so I figured that is what pp'er was asking about.
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Old 01-03-2013, 09:49 AM
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Hmm, thanks for clarifying that.

I just got the link e-mailed to me by my sponsor so I figured that is what pp'er was asking about.
So I use mmk and I am on the food program.

I can only claim 3 meals and one snack. Where do I put the other snacks at in MMK so that I can claim ALL of the food that I served?
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Old 01-03-2013, 12:40 PM
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Default Minute Menu and meals

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So I use mmk and I am on the food program.

I can only claim 3 meals and one snack. Where do I put the other snacks at in MMK so that I can claim ALL of the food that I served?
Track the snacks in the same place you enter all other meals and snacks. Minute Menu allows you to track up to six servings a day, per child.
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Old 01-03-2013, 01:20 PM
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So I use mmk and I am on the food program.

I can only claim 3 meals and one snack. Where do I put the other snacks at in MMK so that I can claim ALL of the food that I served?
If you are on the food program you should be keeping track of all of the meals that you are serving to the daycare kids regardless of whether or not the food program will reimburse you for them all.

For instance, if you serve breakfast at 7am, morning snack at 9am, lunch at 11:30am, afternoon snack at 3pm and dinner at 5pm and you have a child that attends from 7am to 5:30pm and you feed him all of the above meals you should be keeping track of all of those meals in your food program paperwork. Your food program will then take those meal counts and reimburse you for 4 of them (usually the most larger/expensive ones). In some cases the food program will only count dinner if it's past a certain hour like past 6pm or 7pm so they will reimburse you for breakfast, lunch and 2 snacks but then you can claim all of the meals on your taxes later and also claim dinner.

Then at the end of year you will have all of your meal count claims and can claim all of the meals that you served on your taxes. The food program shouldn't hassle you for counting them all on your food claims, they'll simply only reimburse you for 4 meals.
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Old 01-03-2013, 01:25 PM
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If you are on the food program you should be keeping track of all of the meals that you are serving to the daycare kids regardless of whether or not the food program will reimburse you for them all.

For instance, if you serve breakfast at 7am, morning snack at 9am, lunch at 11:30am, afternoon snack at 3pm and dinner at 5pm and you have a child that attends from 7am to 5:30pm and you feed him all of the above meals you should be keeping track of all of those meals in your food program paperwork. Your food program will then take those meal counts and reimburse you for 4 of them (usually the most larger/expensive ones). In some cases the food program will only count dinner if it's past a certain hour like past 6pm or 7pm so they will reimburse you for breakfast, lunch and 2 snacks but then you can claim all of the meals on your taxes later and also claim dinner.

Then at the end of year you will have all of your meal count claims and can claim all of the meals that you served on your taxes. The food program shouldn't hassle you for counting them all on your food claims, they'll simply only reimburse you for 4 meals.
ok so when I have done just what you said in the past, I am told that the child is disallowed the meals because I can't claim more than xyz amount.......

I think I should call and ask my food program.....
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Old 01-03-2013, 02:52 PM
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ok so when I have done just what you said in the past, I am told that the child is disallowed the meals because I can't claim more than xyz amount.......

I think I should call and ask my food program.....
That's a good idea. When I did it although my food rep kept telling me that some meals weren't counted because they only reimbursed for a specific number per day per child I kept marking my meals on MMK just as I had served them and left it up to the food program to pay me for the meals that I was entitled to be reimbursed for. I always double checked when I got the payment but I never had any problems about being reimbursed correctly. If your food program is being a stickler about it then you can keep track of your meals by using forms or a ledger or something like that.

Here's one example of something that you can use to keep track
dpi.wi.gov/files/forms/doc/pod1455.doc

You can always use it as a sample and create your own version of it in excel or something similar. For now you can go back and check your attendance records to determine which meals your DCK's were present for and recreate your meals counts based on the hours that they were in daycare. You'd have to go day by day but at least you can also claim the extra meals you served that the food program didn't cover.
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Old 02-08-2013, 02:38 PM
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Where exactly do you deduct it on your taxes?
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Old 02-08-2013, 05:14 PM
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Where exactly do you deduct it on your taxes?
Claim food expenses on Schedule C, line 28 Other (shown on the back of the form).


Join me for a webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab
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Old 08-25-2013, 10:30 PM
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I only qualify for the Tier 2 deduction. I am thinking that it would be more beneficial for me to take the standard meal allowance at the end of the year. I am currently signed up for a food program, but may be going off of it because it seems to make more sense to just take the standard meal allowance. Thoughts?
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Old 08-26-2013, 05:33 AM
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I only qualify for the Tier 2 deduction. I am thinking that it would be more beneficial for me to take the standard meal allowance at the end of the year. I am currently signed up for a food program, but may be going off of it because it seems to make more sense to just take the standard meal allowance. Thoughts?
You can still qualify to take the standard meal deduction at the end of the year if you are on the meal program. So you would claim the standard meal deduction per meal on your taxes, and also claim the income from the reimbursements. Here is one of Tom Copeland's posts, reed it and the blog he links in it too. http://www.tomcopelandblog.com/2013/...ent-rates.html
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