Filing Your 2024 Taxes? Here’s What You Need to Know About CACFP Reimbursement Rates
Tax season is here, and as a family child care provider, it’s essential to accurately report your Child and Adult Care Food Program (CACFP) reimbursements and take full advantage of eligible deductions. The 2023-2024 CACFP reimbursement rates are in effect from July 1, 2023, to June 30, 2024, and these rates play a key role in determining how you report income and claim deductions for tax purposes.
Understanding CACFP Reimbursements and Tax Filing
CACFP reimbursements are considered taxable income, meaning they must be reported on your tax return. However, the amount of reimbursement does not determine your deductible food expenses—providers must track their food costs separately to ensure they maximize deductions.
There are two ways to deduct food expenses:
✔️ Actual Cost Method: Deduct the actual cost of food purchased for child care, using receipts and records.
✔️ Standard Meal Allowance Method: Deduct a fixed amount per meal or snack, based on the number of meals served, without needing receipts.
Many child care providers find the standard meal allowance method simpler and more beneficial because it allows them to deduct food costs without tracking every grocery purchase.
2023-2024 CACFP Reimbursement Rates for Family Child Care Homes
These rates apply from July 1, 2023, to June 30, 2024, and determine the amount of reimbursement family child care providers receive per meal or snack served.
Continental U.S. (All states except AK & HI)
🔹 Tier I
Breakfast: $1.65
Lunch/Supper: $3.12
Snack: $0.93
🔹 Tier II
Breakfast: $0.59
Lunch/Supper: $1.88
Snack: $0.25
Alaska
🔹 Tier I
Breakfast: $2.63
Lunch/Supper: $5.05
Snack: $1.50
🔹 Tier II
Breakfast: $0.92
Lunch/Supper: $3.05
Snack: $0.41
Guam, Hawaii, Puerto Rico, and the U.S. Virgin Islands
🔹 Tier I
Breakfast: $2.12
Lunch/Supper: $4.05
Snack: $1.20
🔹 Tier II
Breakfast: $0.75
Lunch/Supper: $2.44
Snack: $0.33
📌 Note: CACFP reimbursement rates are adjusted annually. Make sure to check the July 1, 2024 - June 30, 2025 rates once released to ensure proper reporting in future tax years.
How to Report CACFP on Your Taxes
When filing your 2024 taxes (due April 15, 2025), keep in mind the following:
✅ Reimbursement as Income: CACFP reimbursements are taxable income and should be reported on Schedule C (Profit or Loss from Business) of your Form 1040.
✅ Deducting Food Costs: You can claim either actual food expenses or the standard meal allowance. If using the actual cost method, keep all grocery receipts. If using the standard meal allowance, maintain accurate meal count records.
✅ Keep Records: Maintain attendance logs, menus, and meal counts to justify your claims. The IRS requires documentation, so keeping detailed records is essential.
By staying informed and keeping accurate records, you can make tax season less stressful and ensure you get the deductions you deserve!
📌 Tax time doesn’t have to be overwhelming—stay organized, plan ahead, and file with confidence!
