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  #1  
Old 09-29-2015, 11:19 AM
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Default Food Program Proof of Income for Tier 1 - is this a normal request?

I got tier 1 the first year because I had $0 and she made it seem like my DH income was at the cut off.

Anyways, I got the form filled out and sent it in. My income and DH goes over the Tier 1 cut off. I just got a email asking for my tax return schedule c line 30, info but that line is blank. Is she asking for the wrong line? (Id ask her but it is like pulling teeth asking her anything)
My other option is a monthly ledger showing earnings, um I don't keep a ledger (guess I could create one). List of names of my clients with weekly payments for Sept.

Is this normal for them to request this info?
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Old 09-29-2015, 12:01 PM
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I have heard that, even within states, the food program rules would vary. Here, I am automatically tier 1 based on where I live in the city. (A lower income neighborhood)

The only reason the food program would only need to see me income if I wanted to claim my own kids for meal reimbursement. Even then, they would probably look at my adjusted gross income. (Income - deductions)
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Old 09-29-2015, 12:09 PM
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I am in the process of applying to change from tier 2 to tier 1. My DH just switched to part time work while he goes back to school fulltime. They asked for my ledger and dh's paystubs. You should think about keeping a ledger for tax purposes Good luck with food program bureaucracy, I know it can be a mess.
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Old 09-29-2015, 12:14 PM
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Wow, does your own income count for the daycare kids tier? That seems wrong. I am Tier 1 because I live in a low income neighborhood. However, my family does not qualify for assistance so I cannot claim my own children.
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Old 09-29-2015, 12:40 PM
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I too was under the understanding that the only time a provider needs to submit income information is if they are trying to claim their own children.

I thought what tier you are on was based off your school area and/or off the child you are claiming family's income.

Hmmm, now I am curious too...

....off to Google I go!
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Old 09-29-2015, 12:45 PM
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Guess not... this is copied and pasted from my food program sponsor page:

Tier I Reimbursement Rate Criteria:

The family child care home must be located in a geographical low-income area. Low income areas are determined by census data or elementary school boundaries in which at least half of the enrolled children receive free or reduced price meals. If the family child care home is not located in a low-income geographical area, the provider may complete a family size and income data sheet. If the provider meets the income guidelines, the provider may claim Tier I rates.

Tier II Reimbursement Rate Criteria:

If the Tier I criteria does not apply, the provider may still qualify to receive Tier I reimbursement rates for the families who qualify as low income. All reimbursement rates are adjusted annually, and all food program sponsors reimburse at the same USDA reimbursement rate.


The following rates are in effect July 1, 2015 through June 30, 2016

Tier I Reimbursement
Breakfast $1.32
Lunch/Supper $2.48
Snack $ .74

Tier II Reimbursement
Breakfast $ .48
Lunch/Supper $ 1.50
Snack $ .20
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Old 09-29-2015, 01:49 PM
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Quote:
Originally Posted by spedmommy4 View Post
I have heard that, even within states, the food program rules would vary. Here, I am automatically tier 1 based on where I live in the city. (A lower income neighborhood)

The only reason the food program would only need to see me income if I wanted to claim my own kids for meal reimbursement. Even then, they would probably look at my adjusted gross income. (Income - deductions)
Could she be asking me for this info. so I can claim my daughter?
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Old 09-29-2015, 02:37 PM
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Quote:
Originally Posted by 284878 View Post
Could she be asking me for this info. so I can claim my daughter?
I know for me it is one in the same. They need my income info because that is how I am qualifying for tier one - provider's income. If I qualify by income for tier 1, then I can automatically claim my children too.
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Old 09-29-2015, 05:50 PM
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If your local school does not qualify you for tier 1, then the only other way you can qualify as tier 1 would be based on your household income. I wish I could use my tax return. My sponsor won't accept that. I was told the only way I could "prove" my income would be to hire an accountant to audit my records and sign off on my income. So even though we make next to nothing and based on my tax returns I should be getting tier 1, I only get tier 2. I refuse to spend money to hire someone to audit my records.
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Old 09-29-2015, 06:40 PM
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Quote:
Originally Posted by Controlled Chaos View Post
I know for me it is one in the same. They need my income info because that is how I am qualifying for tier one - provider's income. If I qualify by income for tier 1, then I can automatically claim my children too.
Ok I did get a hold of her and she made a mistake and needs line 31 on the tax form schedule C which says $102. Which is Depreciation of your home from line 41 below. Why would she need this?
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Old 09-29-2015, 07:49 PM
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Quote:
Originally Posted by NillaWafers View Post
Wow, does your own income count for the daycare kids tier? That seems wrong. I am Tier 1 because I live in a low income neighborhood. However, my family does not qualify for assistance so I cannot claim my own children.
They base teir on local schools here. The school, although dying and losing students to school of choose is teir 2, so I am teir 2, unless my income takes me to teir 1. My and dh income is over the amount before taxes and deductions. So she led me to believe that i did not qualify for teir 2. I have a dd, I was under the impression I would get reimbursed for her no matter what teir I am on. Is that not true?


(did I get the tiers right? In foster care, the higher the teir the more money, which makes more sense than the higher being less money. I just can't get use to it being backwards)
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Old 09-29-2015, 08:00 PM
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Quote:
Originally Posted by Blackcat31 View Post
Guess not... this is copied and pasted from my food program sponsor page:

Tier I Reimbursement Rate Criteria:

The family child care home must be located in a geographical low-income area. Low income areas are determined by census data or elementary school boundaries in which at least half of the enrolled children receive free or reduced price meals. If the family child care home is not located in a low-income geographical area, the provider may complete a family size and income data sheet. If the provider meets the income guidelines, the provider may claim Tier I rates.

Tier II Reimbursement Rate Criteria:

If the Tier I criteria does not apply, the provider may still qualify to receive Tier I reimbursement rates for the families who qualify as low income. All reimbursement rates are adjusted annually, and all food program sponsors reimburse at the same USDA reimbursement rate.


The following rates are in effect July 1, 2015 through June 30, 2016

Tier I Reimbursement
Breakfast $1.32
Lunch/Supper $2.48
Snack $ .74

Tier II Reimbursement
Breakfast $ .48
Lunch/Supper $ 1.50
Snack $ .20
They did not ask for any info on the parents. I might question it in the morning. Thanks BC
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  #13  
Old 09-29-2015, 08:18 PM
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Quote:
Originally Posted by Controlled Chaos View Post
I am in the process of applying to change from tier 2 to tier 1. My DH just switched to part time work while he goes back to school fulltime. They asked for my ledger and dh's paystubs. You should think about keeping a ledger for tax purposes Good luck with food program bureaucracy, I know it can be a mess.
I use Quicken for everything, I don't have an individual ledger book for just daycare. I can run a report for anything financial back to 1999.
When i read the email I picture a handwritten accountants book. She is old fashion and a stickler, that she may really want an handwritten ledger.
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  #14  
Old 09-30-2015, 03:45 AM
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Quote:
Originally Posted by 284878 View Post
I have a dd, I was under the impression I would get reimbursed for her no matter what teir I am on. Is that not true?
No, you will on get reimbursed for your own kids if you are income qualified.
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  #15  
Old 09-30-2015, 05:55 PM
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I just noticed, she is asking for my DH September 2014 paycheck stubs. I thought that they would use this years?
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Old 09-30-2015, 06:04 PM
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Quote:
Originally Posted by 284878 View Post
Ok I did get a hold of her and she made a mistake and needs line 31 on the tax form schedule C which says $102. Which is Depreciation of your home from line 41 below. Why would she need this?
Line 31 on Schedule C is your Net Profit or Loss: http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
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  #17  
Old 10-01-2015, 08:06 AM
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Yeah, you only can claim your own children if your household meets the income guidelines. I have three children, and the extra reimbursement money really helps.
I just give mine a copy of my schedule C and then my husband's recent paystubs.
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  #18  
Old 10-01-2015, 10:41 AM
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Quote:
Originally Posted by 284878 View Post
Could she be asking me for this info. so I can claim my daughter?
Did you ask her why she needs it?

I'm tier I now because of some census information thay came out my neighborhood as lower income - I have no came up with that - because my immediate neighborhood is very much higher come (lawyers, doctors, engineers, etc) But another provider who lives a mile away from me and in a more lower income area was told she didn't qualify for tier I based on her area.

In any event I had thought the only time they need the providers info is when they are claiming their own kids. I try to be careful about who gets what information, too many stories about people stealing information to get credit, etc.
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