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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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Old 04-10-2010, 05:09 PM
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Default Costs of Meals - Help!

We filed our taxes last night and the lady from H&R block said that instead of saving all of my receipts for food, I can just keep track on when the kids are here. I think she said snacks are 65 cents and I can't recall what she said for breakfast and lunch. I've been googling but can't come up with anything. Does anyone do this? I have always just kept my receipts but she said I might make out better calculating the costs of the meal and snacks. Another question, can I calculate for 2 meals and 2 snacks or just 1 snack.
Any help would be greatly appreciated. By the way, I"m in Pennsylvania.
Thanks!
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Old 04-10-2010, 05:32 PM
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Here in Iowa I can calculate how many children are here each day for breakfast, am snack, dinner, and pm snack. I can't remember the exact # you make for each child for food though.
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Old 04-10-2010, 07:17 PM
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I am in NY. I can keep count for each child per meal per day. I make out much better this way. Breakfast is $1.19, Snacks are $0.66 and for lunch/dinner $2.21
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Old 04-10-2010, 08:48 PM
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Originally Posted by gbcc View Post
I am in NY. I can keep count for each child per meal per day. I make out much better this way. Breakfast is $1.19, Snacks are $0.66 and for lunch/dinner $2.21
GBCC's numbers are correct. The amount deductable is the amount that would be reimbursable on most food programs, and is a national standard, so it is the same for all states, except Alaska and Hawaii. You can find it on the USDA web site. I believe you can claim 2 meals and two snacks per day. They update the amounts each July to adjust for the cost of lliving.
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Old 04-10-2010, 09:01 PM
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Here are the numbers I used. This is a link to the info on the IRS website:

http://www.irs.gov/publications/p587...link1000226375
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Old 04-10-2010, 09:03 PM
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You can take the standard meal deduction instead of keeping reciepts and I think this is a lot easier. You can deduct up to 2 meals and 2 snacks per day per child. The rate is the same as the higher tier 1 rate on the food program. FYI-The meals and snacks do not have to meet food program guidelines in order to deduct them.
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Old 04-11-2010, 02:58 AM
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While it may be simpler, is it better tax-wise for you?

What I'm asking is, which way are you maximizing your deductions?

H&R Block(heads) are notorious for doing things the 'easy' way, and costing their customers HUGE amounts of cash. Many times, this is due to their hiring temps during the tax season who are not professionals who do this day in, day out.

H&R Blockheads almost cost me $20k my first year in business. Luckily, I got a 'second' opinion, and my tax liability was under $3k when a professional who had a clue what they were doing reviewed it.
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Old 04-11-2010, 07:13 AM
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Quote:
Originally Posted by Chickenhauler View Post
While it may be simpler, is it better tax-wise for you?

What I'm asking is, which way are you maximizing your deductions?

H&R Block(heads) are notorious for doing things the 'easy' way, and costing their customers HUGE amounts of cash. Many times, this is due to their hiring temps during the tax season who are not professionals who do this day in, day out.

H&R Blockheads almost cost me $20k my first year in business. Luckily, I got a 'second' opinion, and my tax liability was under $3k when a professional who had a clue what they were doing reviewed it.
I do agree with this. We went to HR Block our first year in childcare business. I used a childcare software program (Minute Menu Kids) for the entire year and had done a lot of reading on childcare taxes etc... I had all the work practically done for them. I had to correct him on a few things which he had never heard of AND they charged us almost $600 to do our taxes! Now I do my own. Although I do use the standard deduction. To me it is just worth it not to HAVE to figure out the actual cost of the childcare portion of food.
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Old 04-11-2010, 10:11 AM
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Thanks everyone. The lady from H&R Block, which I did not care for. Said I could keep track of my receipts and do it the other way to see which way I would make out better. It would seem to me, that by doing the meal deductions that would be better.
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Old 04-11-2010, 11:38 AM
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My sister was going to use an aunt's friend from Hand R block. I told her that H and R BLock was very expensive. She didn't ask until after I told her this- the lady was going to charge her $700.00, because she owned an in home daycare. We can usually have it professionally done for $100-$150.00!!! That is alot of difference!!!
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Old 04-11-2010, 03:39 PM
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It cost us $250 at H & R block. Last year, it was $190. It's a big money racket. We are all in the wrong business
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Old 04-11-2010, 05:20 PM
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I paid $150, and that included doing both of my kids ezforms and hubbys and mine. I also agree H & R is a rip off.
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Old 04-14-2010, 04:42 AM
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Quote:
Originally Posted by originalkat View Post
I do agree with this. We went to HR Block our first year in childcare business. I used a childcare software program (Minute Menu Kids) for the entire year and had done a lot of reading on childcare taxes etc... I had all the work practically done for them. I had to correct him on a few things which he had never heard of AND they charged us almost $600 to do our taxes! Now I do my own. Although I do use the standard deduction. To me it is just worth it not to HAVE to figure out the actual cost of the childcare portion of food.
This year, we paid $275 to a CPA to prepare our return, and this lady is SHARP!

And it's not just daycare, but my trucking company also, and that's a whole nother can of worms.
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