Food Program… YES or NO

[melilley]

Yes, your own children count as "dck's" IF other DCK's are present when you serve the meals.

Atleast that's the way it works here too.

Here I can't count my own kids because my husband and I make too much.

[Blackcat31]

Unless you are talking about claiming it on your taxes. That part I am not sure about but I bet Tom will have an answer.

My rep says ANY money we get (regardless of if it's for our own kids) must be counted so I don't know if that part is regional or subject to "interpretation" by each agency.

[TwinKristi]

Yes, your own children count as "dck's" IF other DCK's are present when you serve the meals.

Atleast that's the way it works here too.

Right, but I have at least 1 if not 4 of my kids here for all the meals I serve. Since we have a large family we typically qualify but just barely. With our family size we can make almost $100,000 and still qualify for many programs.

And yes I was talking about on taxes. They're already claimed through the FP because of our school district and income, but I meant whether I claim the money I get from FP for my kids. I figured if I claim them and get money I would also include the food I buy for all of them in my deductions since I'm being paid to feed them.

[itlw8]

Reporting Food Program Reimbursements and Claiming Food Expenses



Reporting Food Program Reimbursements and Claiming Food Expenses

By Tom Copeland



Food Program
•Reimbursements received from the Food Program for children in your care are taxable income.
•Reimbursements received from the Food Program for your own children are not taxable income.
•You are always better off financially by being on the Food Program.

Claiming Food Expenses
•You have two choices in how to claim your food expenses:
•Standard Meal Allowance Method (IRS Revenue Ruling 2003-22) •If you use this method, you do not have to save any food receipts, business or personal!
•Add up all the breakfasts, lunches, suppers, and snacks you serve to the children in your care.
•Multiply the total by the following standard meal allowance rate: •2013 - $1.27 breakfast, $2.38 lunch/supper, $0.71 snack
•2014 - $1.28 breakfast, $2.40 lunch/supper, $0.71 snack

•You can claim a maximum of one breakfast, one lunch, one supper, and three snacks per day, per child.
•All providers can use these rates whether or not they are on the Food Program and whether or not they are a Tier I or a Tier II provider.
•Providers must keep the following records: name of each child, dates and hours of attendance in care, and the number of breakfasts, lunches, suppers, and snacks served. Be sure to save food receipts that contain non-food items such as paper products.


Actual Food Cost Method
• •There is no one way to estimate your actual food costs. You can buy food separately, calculate your own average cost per meal, per child or use other methods.
•You can deduct the cost of all the food you serve to the children in your care, whether or not it was reimbursed by the Food Program. You cannot deduct the cost of any food served to your own children.
•The simplest and most accurate method of estimating actual food costs for most providers is to calculate an average cost per meal per child and multiply this by the number of meals and snacks you served. Your average cost per meal may be greater than the standard meal allowance rate.
•Providers must keep the following records: all business and personal food receipts, menus, name of each child, dates of attendance, and the number of breakfasts, lunches, suppers, and snacks served.


For details, see the 2013 Family Child Care Tax Workbook and Organizer (Redleaf Press, 800-423-8309)



Tom Copeland; www.tomcopelandblog.com

[itlw8]

I copy pasted from Tom Copelands blog as soon as it is approved by a moderator... but in the top section tells about your own children IF you qualify. no you do not count the money received for them as income just like food stamps are not income for you... but by the same token you do not claim the cost of their food. You can not double dip

[Cat Herder]

I'd recommend trying it for a year or two. The training is fun, the paperwork is bearable and some people love it.

I personally opted out for two reasons after giving it two years in my current location.

1. My agency is unreliable. Constantly losing/incorrectly completing paperwork. Sending 2-3 different reps in a month for surprise inspections, disrupting my world, to make up for their mistakes. The last one was crying and telling me how she was about to lose her job...... Imagine how the DCK's handled that. She was a sweetheart, but mentally exhausting......

2. The money they pay counts as income instead of an end of year deduction. I don't need income, I need deductions. This is not my only job and if I am not careful I will owe big $$$$. As it is I get to deduct at the tier 1 rate, but would be reimbursed at tier two... :confused: None of my clients would qualify for assistance.

[TwinKristi]

Ok that makes sense... Does MMK have a statement to show your monthly attendance? I need to go play with it and see

[LeslieG]

Reporting Food Program Reimbursements and Claiming Food Expenses



Reporting Food Program Reimbursements and Claiming Food Expenses

By Tom Copeland



Food Program
•Reimbursements received from the Food Program for children in your care are taxable income.
•Reimbursements received from the Food Program for your own children are not taxable income.
•You are always better off financially by being on the Food Program.

Claiming Food Expenses
•You have two choices in how to claim your food expenses:
•Standard Meal Allowance Method (IRS Revenue Ruling 2003-22) •If you use this method, you do not have to save any food receipts, business or personal!
•Add up all the breakfasts, lunches, suppers, and snacks you serve to the children in your care.
•Multiply the total by the following standard meal allowance rate: •2013 - $1.27 breakfast, $2.38 lunch/supper, $0.71 snack
•2014 - $1.28 breakfast, $2.40 lunch/supper, $0.71 snack

•You can claim a maximum of one breakfast, one lunch, one supper, and three snacks per day, per child.
•All providers can use these rates whether or not they are on the Food Program and whether or not they are a Tier I or a Tier II provider.
•Providers must keep the following records: name of each child, dates and hours of attendance in care, and the number of breakfasts, lunches, suppers, and snacks served. Be sure to save food receipts that contain non-food items such as paper products.


Actual Food Cost Method
• •There is no one way to estimate your actual food costs. You can buy food separately, calculate your own average cost per meal, per child or use other methods.
•You can deduct the cost of all the food you serve to the children in your care, whether or not it was reimbursed by the Food Program. You cannot deduct the cost of any food served to your own children.
•The simplest and most accurate method of estimating actual food costs for most providers is to calculate an average cost per meal per child and multiply this by the number of meals and snacks you served. Your average cost per meal may be greater than the standard meal allowance rate.
•Providers must keep the following records: all business and personal food receipts, menus, name of each child, dates of attendance, and the number of breakfasts, lunches, suppers, and snacks served.


For details, see the 2013 Family Child Care Tax Workbook and Organizer (Redleaf Press, 800-423-8309)



Tom Copeland; www.tomcopelandblog.com

Thank you!!

[Familycare71]

I was on it for years until they switched me to tier 2 so I quit it.
For me it just wasn't worth the hassle anymore. If I had remained tier 1 I probably would have stayed on the food program.

[TomCopeland]

food program

Unless you are talking about claiming it on your taxes. That part I am not sure about but I bet Tom will have an answer.

My rep says ANY money we get (regardless of if it's for our own kids) must be counted so I don't know if that part is regional or subject to "interpretation" by each agency.

If your own children qualify to receive reimbursements from the Food Program, this money is not taxable income. Food served to your own children are never deductible, whether or not you are getting reimbursed for them.

[TomCopeland]

food program

I'd recommend trying it for a year or two. The training is fun, the paperwork is bearable and some people love it.

I personally opted out for two reasons after giving it two years in my current location.

1. My agency is unreliable. Constantly losing/incorrectly completing paperwork. Sending 2-3 different reps in a month for surprise inspections, disrupting my world, to make up for their mistakes. The last one was crying and telling me how she was about to lose her job...... Imagine how the DCK's handled that. She was a sweetheart, but mentally exhausting......

2. The money they pay counts as income instead of an end of year deduction. I don't need income, I need deductions. This is not my only job and if I am not careful I will owe big $$$$. As it is I get to deduct at the tier 1 rate, but would be reimbursed at tier two... :confused: None of my clients would qualify for assistance.

I can understand your reason #1, but reason #2 is not logical. Yes, Food Program reimbursements count as income, but you will still claim the same amount in food expenses after you join the Food Program. If you use the standard meal allowance rule, you can deduct food expenses at the Tier I rate that was in effect as of January1st. If you are getting reimbursed at the Tier II rate, you are still better off financially if you join the food program. Let's say you can deduct $4,000 using the Tier I rate. If you join the Food Program you will get about $2,000 in income. So, you pay the tax on the $2,000. But you still get to deduct the $4,000. The only difference between being on the food program and not being on it, is that you get more income! If your husband got a raise, would you want him to accept it? Even though with his higher income your family will pay more in taxes? Of course! The same thing happens with the food program.

[Angelsj]

•You are always better off financially by being on the Food Program.

Tom, can you explain the above?

I am tier two, and none of my families qualify for tier one. My own children do not count in my ratios and I do not get reimbursed for them. On my taxes, I can take tier one rates. Other than having to wait, how would I be better off being ON the food program? Particularly if that amount moved us up a tax bracket? (I am not sure that it would.)

[wonderfullisa]

Because you can do both. You can still claim the deductions of the tier 1 level at the end of the year.
You should do that, regardless.
On the food program, you also get more income through the monthly reimbursements.
My only issues with the FP are that I think it's too lax in what it allows providers to serve and be credited. However, it doesn't force me to serve junk. I can still serve whole foods and be reimbursed.
I've only been on since the tail end of October, but I'm very pleased. Money is money. This is a business.

[Angelsj]

Because you can do both. You can still claim the deductions of the tier 1 level at the end of the year.
You should do that, regardless.
On the food program, you also get more income through the monthly reimbursements.
My only issues with the FP are that I think it's too lax in what it allows providers to serve and be credited. However, it doesn't force me to serve junk. I can still serve whole foods and be reimbursed.
I've only been on since the tail end of October, but I'm very pleased. Money is money. This is a business.

No, I am looking at how it is MORE beneficial. If you receive reimbursements, that is income. Even with the difference.
For example, let's say I receive $5000 in reimbursements through the food program, being on tier 2. Claiming tier one for my taxes, I might have $10,000 in deductions, BUT I have to claim that $5000 as income. To me, it is a wash, other than you get the income throughout the year, rather than taking it all as a deduction at the end.
And if that amount of income pops you up a tax bracket, it could actually end up COSTING you money.

[jojosmommy]

I love the food program discussion. It makes me chuckle everytime.

Lets say you pay 30% tax. If a parent offered to pay you $100 or $50 which would you take? Either way you have to file taxes, and either way you get to write off the same deductions. The food program is the $100, not doing the food program is the $50.

FREE MONEY, for feeding kids who already eat. Plus or minus a minute of paperwork a day and three visits a year from a rep.

The food program deposited over $5k in my account this year and I am writing off a little over $6500 in meals, thanks to extra meals which were over my daily reimburseable limit.