“CAn I use the standard meal and snack rate a daycare would use to reduce my income.”----> You have two options when claiming a deduction for the meals you provide for the day care children. One option allows you to claim the standard meal allowance, which is based on the number of meals and snacks served to the children during the year. The other option requires you to keep track of all food expenses, including those for personal food, and bases your deduction on your actual expense. No matter which option you choose, accurate record keeping is vital to help you get the most from your deduction. In order to claim the standard meal allowance, you need to have an accurate count of the types and number of meals servedd. Your records must include the names of the children served and the dates and hours of their attendance. An easy approach is to purchase a record keeper designed for day care attendance and meal records or to use the "Family Day Care Provider Meal and Snack Log" suggested by the IRS. Once you have totaled your meals by category,breakfast, lunch, dinner, snack, you can claim a deduction based on the standard meal and snack rates issued by the IRS. For all states except Alaska and Hawaii, the standard rates are $1.17 for breakfast, $2.18 for lunch and dinner and 65 cents for snack. If you participate in a state-sponsored food program, "You can deduct only the portion of the applicable standard meal or snack rate that is more than the amount of the reimbursement," according to the IRS. Any meals that you served to day care children that were not reimbursed by the food program can be deducted at the full standard rate. Using the standard meal rates is easier and safer, in case of an audit. If you have records showing attendance and meals served, the IRS will not contest a food deduction based on the standard rates. If you choose to claim a deduction based on the actual cost of meals served to day care children, your records must include receipts from both personal and day care food costs. If you purchase food for your business and home separately,you need to maintain a log for each category and attach receipts so that you have a record for your files. Once you determine your actual food expense for the year, you can claim the full deduction on your taxes, unless you received reimbursement from a state-sponsored food program. If you participate in a food program, you can simply deduct your total reimbursements for the year from your total expense to determine your tax deduction.
Please visit the IRS Website here for more information in detail :
IRS Reduces Burden For Family Day Care Providers
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