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Daycare Center and Family Home Forum>Food Program Profit?
busymommy0420 10:44 AM 04-24-2012
Last month I made sure all my daycare food and drinks were kept separate from my families food and drinks. I kept receipts for all and when I received my reimbursement from the food program I had a $100 profit. I already buy organic milk, lots of fresh fruit and veggies and provide really healthy and homemade meals. I would like to put the extra money into my program on a special field trip art project or toys. Does anyone else get reimbursed more then they spend on food if so do you put it back into your program? Do you pay bills?

I now have 6 enrolled children plus my three children so I have a good size group! Thanks for your thoughts...
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lil angels 10:48 AM 04-24-2012
That's interesting I have never kept everything separate like that to know. When my check comes I just deposit it with the other weeks checks and pay bills, get some shopping done,ect.
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busymommy0420 10:50 AM 04-24-2012
I thought I was not getting reimbursed enough and wanted to claim the difference as an expense but I was surprised because I had an extra $100!
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jojosmommy 12:41 PM 04-24-2012
We don't track our food costs that efficiently. I just put the money in my tax account and use it to pay taxes at the end of the yr if need be. I guess I figure that is income just like the rest and don't bother splitting it up.
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itlw8 12:51 PM 04-24-2012
I doubt I come out ahead but I was on teir 2 for so many years I became quite frugal with my menu.. Moving to teir one I buy lots more fresh fruits and veggies. I can afford it now.
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itlw8 12:53 PM 04-24-2012
Originally Posted by busymommy0420:
I thought I was not getting reimbursed enough and wanted to claim the difference as an expense but I was surprised because I had an extra $100!
take the standard deduction you will come out ahead on your taxes.

You are claiming the fp payment as income and ALL the food cost as an expense I hope.
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Neekie 01:10 PM 04-24-2012
I sometimes show a profit although it isn't usually a lot. I use the extra money to build up my food stock. I go to Sam's Club and stock up on canned goods and such and fill up my freezer. I buy extra bottles of ketchup, dressing, spaghetti sauce; anything that will keep awhile. That way I can still take that profit and claim it as a 100 % food expense.
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DCMom 01:36 PM 04-24-2012
I kept track several years ago and the cost per meal came to within pennies of the Tier II rate. I just started claiming the standard deduction instead of tracking the cost per meal, the difference wasn't worth my time.

Back then, if you were reimbursed at the Tier I rate and were a careful shopper you could pretty easily make a profit, but with the cost of food going up and up I don't know if that is true any longer.

My food program checks fund my SEP so I can turn around and write them off at 100%.
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Neekie 01:43 PM 04-24-2012
I don't have a very large profit and so that 's why it works for me to use it on food to stock my pantry and freezer, but if I were to have a bigger profit I guess I would use it to buy things for my business if I didn't need it for bills. I just don't want to have to claim it as income and then not be able to take it back off again as an expense.
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DaisyMamma 04:20 PM 04-24-2012
I don't keep track, I use the full check from the food program every month to put into the daycare, but I'm also fairly new, so I need some stuff. I've purchased paint for the walls, a table/chair set, fencing for my yard, toys, etc.
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Countrygal 06:02 PM 04-24-2012
I think a lot has to do with where you live. Food is expensive here. If I could shop at Woodman's all the time I'm sure I'd see some leftover dough, but since I am not able to (it's almost an hour away), I think I about come out even.
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itlw8 06:39 PM 04-24-2012
Originally Posted by Neekie:
I don't have a very large profit and so that 's why it works for me to use it on food to stock my pantry and freezer, but if I were to have a bigger profit I guess I would use it to buy things for my business if I didn't need it for bills. I just don't want to have to claim it as income and then not be able to take it back off again as an expense.
That can not happen... If you are on teir one the reimbursement check will be exactly the same as the standard deduction if that is the only food you serve.

If you are on tier 2 the check will be LESS than the standard deduction

I am not positive but I think if you are reimbursed for your own children due to your income that money is not counted as income.
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Neekie 01:33 AM 04-25-2012
Originally Posted by itlw8:
That can not happen... If you are on teir one the reimbursement check will be exactly the same as the standard deduction if that is the only food you serve.

If you are on tier 2 the check will be LESS than the standard deduction

I am not positive but I think if you are reimbursed for your own children due to your income that money is not counted as income.
Oh, ok! I wasn't using the standard food deduction. I am not real tax smart. I didn't even know I could it that way. Now I learned something. I just bought Tom Copeland's Record-Keeping Guide, but I haven't had a chance to read it yet. I looked up standard food deduction in there and that is so much easier. I will do it that way from now on.
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Tags:food program, meal deductions, taxes-food
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