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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 07-11-2012, 04:48 AM
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Default Food Program and Taxes

I am going to get licensed and was talking to someone about the food program yesterday. She said something that made it sound like I can *either* be on the food program and get paid OR I can deduct the food on my taxes. I thought I could do both...? Does anyone know?
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Old 07-11-2012, 06:52 AM
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You can only do both if you spend more on food than the food program reimburses you for. Just keep all of your receipts so you can determine the overage.
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Old 07-11-2012, 07:03 AM
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Originally Posted by Truly Scrumptious View Post
You can only do both if you spend more on food than the food program reimburses you for. Just keep all of your receipts so you can determine the overage.
This; I was also wondering more info on this actually. How often would you ladies say you do go over, and claim the overage on your taxes?
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Old 07-11-2012, 07:06 AM
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So if you do the food program you cannot claim the standard deduction for food?
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Old 07-11-2012, 07:08 AM
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The money the food program pays you is what you add into your income. Then, you can do actual expenses (receipts) or take the standard deduction per meal. I don't add up the food receipts because the standard amount is more than I would spend per meal.
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Old 07-11-2012, 07:11 AM
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I am on the food program and I claim standard deductions. Also I claim for all meals and snacks that I serve not just the ones that the food program allows.
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Old 07-11-2012, 07:29 AM
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Default Food Program

Reimbursements from the Food Program are taxable income (exception: reimbursements for your own children). Money you spend on food is deductible whether you are on the Food Program or not. You can use the standard meal allowance deduction to claim food expenses whether you are on the Food Program or not.

You should report your reimbursements as income and report your food expenses as a deduction.
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Old 07-11-2012, 08:29 AM
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Great, thank you SO much as usual!
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Old 07-11-2012, 08:51 AM
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Quote:
Originally Posted by SilverSabre25 View Post
I am going to get licensed and was talking to someone about the food program yesterday. She said something that made it sound like I can *either* be on the food program and get paid OR I can deduct the food on my taxes. I thought I could do both...? Does anyone know?
Sorry if I confused you Silver...your post sounded like your friend was telling you that you could be on the food program and get money from the government to buy food and that was that...or you could NOT be on the food program and deduct all of the food that you buy.

My accountant does just what Tom explained...If I spend just exactly what the food program reimburses me...then it kind of just cancels itself out...but I can still deduct what I spend over, just have to keep my receipts.

Thank you for fixing my mistake Tom!
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Old 07-12-2012, 07:50 AM
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The standard deduction has made life much easier. ( Thank you Tom)

If you are on teir 2 your cost will be higher than your reimbursment.

On teir 1 many of us serve an extra snack that still counts for cost

Never throw away free money. You will pick up a penny on the ground so why throw away $100 in food program reimbursement.
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Old 07-12-2012, 07:15 PM
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Also keep in mind that the IRS will allow you to deduct up to 6 meals/snacks per day - assuming you serve them of course - whereas the food program will only reimburse for 3.

Personally, I serve breakfast, lunch and two snacks per day, so my deduction is always larger than my reimbursement.
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