Family child care providers are entitled to use the standard meal allowance rate to deduct their business food expenses without having to keep food receipts. Below are the standard meal allowance rates for 2008- current year. Child care providers may use these rates for up to one breakfast, one lunch, one supper and three snacks per day per child. These rates are published each year in the IRS Publication 587 Business Use of Your Home.
All child care providers can use the standard meal allowance rate, whether they are on the Food Program or not, whether they receive the higher (Tier I) reimbursement rate, or the lower (Tier II) rate. Even un regulated child care providers can use this rate.
These rates are based on the higher Tier I Food Program reimbursement rate that is in effect in January of that year. The Food Program reimbursement rates are increased each year as of July 1st, but the rates listed here are the rates that should be used to claim food expenses throughout the year.
The rates for Alaska and Hawaii are higher. Go here for these rates.
Tom Copeland – www.tomcopelandblog.com