Daycare Tax Tips

A Tom Copeland Daycare Tax Tip

Food Expenses

Here's a tax tip from Tom Copeland:

One of the most important records to track throughout the year is the number of meals and snacks that you serve the children in your care.

If you are on the Food Program, keep a copy of your monthly claim form. But you should also be recording on a daily basis the additional meals and snacks you serve for which you are not reimbursed by the Food Program. Such snacks do not have to be nutritious, and you don’t need to keep a menu. Keeping an accurate count of meals and snacks will make a big difference when you deduct food expenses on your tax return using the Standard Meal Allowance. If you serve one un-reimbursed snack to one child per day, this is equal to $150 in food deductions for the year.

Based on 2013 meal rates, make that a $177.50 tax deduction for serving and documenting one additional snack served to one child 5 days per week for 50 weeks of the year.

Last updated: 19 December 2013

Posted on 2007-07-06 23:45:10