Tom...Food Program ?

[Crystal]

So, all providers in the State of Ca. have not yet recieved reimbursement for the month of October 2010, which we should have recieved in December. The dept. of ed. is switching computer systems and have been unable to generate payments to food programs.

SO, when I file taxes, how should I handle this? I will recieve two payments in January 2011....so I may have more spent than recieved in reimbursement for 2010, and vice versa for 2011.

[lvt77]

great question I am in the same boat....

[TomCopeland]

Food Program payments

The general rule is this - report income in the year you actually receive it. Report business expenses in the year you incurred the debt. So, you will show lower Food Program income in 2010 and higher income in 2011. This is okay.