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2014 Tax Changes Affecting
Family Child Care Providers

by Tom Copeland

Tax Time

The year 2014 saw a number of tax changes that affect family child care providers.

Be sure your tax professional understands these changes.

* Providers may deduct in one year (rather than depreciating) any item they purchased in 2014 that cost less than $500. This rule also applies to 2015 and future years. Providers do not need to have a written financial statement in their files to take advantage of this rule. See my article.

* The standard meal allowance rate for 2014 is: $1.28 breakfast, $2.40 lunch/supper and $.71 snack. Use this rates for all meals and snacks served in 2014 (including meals and snacks not reimbursed by the Food Program). You may deduct up to one breakfast, one lunch, one supper and three snacks per day, per child. See my article.

* The standard mileage rate for 2014 is $.56 per business mile. The rate for 2015 is $.575 per business mile. See my article.

* The 50% bonus depreciation rule has been extended to 2014. It was originally set to expire at the end of 2013, but was extended by Congressional action in December 2014. See my article.

* The income limits to qualify for the IRS Saver’s Credit has increased to $60,000 (adjusted gross income) for couples filing jointly; $45,000 for heads of household; and $30,000 for individuals or married people filing separately. See my article.

Tax Time* Note: Under a 2013 “Simplified Method Rule ” providers can claim up to $1,500 in house expenses without saving any records, or filing IRS Form 8829 Expenses for Business Use of Your Home. However, the vast majority of providers should not use this rule and should continue to claim their house expenses on Form 8829. See my article.

To learn more about how to fill out your tax forms using these rules, and all other rules, see my 2014 Family Child Care Tax Workbook and Organizer that will be available from Redleaf Press on January 9, 2015.

For more information, see my 2014 Family Child Care Tax Workbook and Organizer. This book is for providers who do their own taxes. It is available from Redleaf Press

As you start your work on your taxes, feel free to post your questions on this Forum or email me directly ( I’m happy to help. To keep up with new information on record keeping, taxes, and other business issues, watch my blog (, or follow me on Facebook or Twitter (AskTomCopeland).

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