2014-2015 Food Program Reimbursement Rates Announced

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Here are the 2014-2015 Child and Adult Food Program reimbursement rates for family child care providers. These rates will be in effect from July 1, 2014 to June 30, 2015.

I encourage all family child care providers to join the Food Program. You will always be better off financially if you do.

Some providers don’t want to join the Food Program because they will pay more in taxes or because they don’t like doing extra paperwork. Read my article, “The Three Most Common Objections to the Food Program” to see why you will always come out ahead if you join.

Tier I – All states exept AK and HI    Tier II – All states except AK and HI

Breakfast $1.31                                                      Breakfast $.48

Lunch/supper $2.47                                            Lunch/supper $1.49

Snack $.73                                                              Snack $.20

 

Tier I Alaska                                                Tier II Alaska

Breakfast $2.09                                                       Breakfast $.74

Lunch/supper $4.00                                              Lunch/supper $2.41

Snack $1.19                                                               Snack $.33

 

Tier I Hawaii                                                Tier I Hawaii

Breakfast $1.53                                                        Breakfast $.55

Lunch/supper $2.88                                              Lunch/supper $1.74

Snack $.86                                                                Snack $.23

These higher rates represent about a 1% increase over 2013-2014. The rate increases are based on the average cost of food served in the home as reported by the Consumer Price Index.

Claiming Food Expenses

The above rates represent what you will receive in reimbursements from the Food Program. They do not represent what you can deduct as food expenses. When you claim food expenses you can use the Standard Meal Allowance Rate or an actual food cost method. See more.

If you use the Standard Meal Allowance Rate to calculate your food expenses, you will use the Tier I rate in effect at the beginning of the calendar year. Therefore, use the above Tier I rates for you 2015 taxes.

For tax year 2014 use the Tier I rates in effect at the beginning of 2013: $1.28 breakfast; $2.40 lunch/supper, and $.71 snack. Alaska: $2.04breakfast; $3.89 lunch/supper, and $1.16 snack. Hawaii: $1.49 breakfast; $2.81 lunch/supper, and $.83 snack.

All child care providers, whether they are licensed or not, even if they receive the lower Tier II reimbursement rate, can use these higher Tier I rates to claim food expenses.

Remember to keep a daily record of all meals and snacks you serve in your business, not just the meals that you are reimbursed for by the Food Program. You are entitled to deduct as food costs on your tax return up to one breakfast, one lunch, one supper, and three snacks per day, per child, if you serve them. For more on how to claim food expenses – here.

See the announcement of these rates in the Federal Register.

Image credit: gilmerfreepress.net

Tom Copeland – www.tomcopelandblog.com

Record Keeping smallFor more about reporting food program reimbursements and claiming food expenses, see the Food Program and Food Expense section of this blog and my book Family Child Care Record Keeping Guide.



Categories: Food Program and Food Expenses, Record Keeping & Taxes

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4 replies

  1. So there is less for feeding suppers this yr?

  2. No, the amount for suppers went up by 7 cents for all states except Alaska and Hawaii.

  3. I live in Hawaii and just started with the food program. Do I include my reimbursements in my General Excise Tax payment that I do Semiannually?

  4. I don’t know the rule in Hawaii. I would recommend contacting your Food Program sponsor or local tax preparer about this.

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