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IRS
PROCEDURES SIMPLIFIED FOR FAMILY DAY CARE PROVIDERS
August 2003
Good news—less paperwork!
No more saving grocery receipts if you instead choose
to use a standard deduction! The Internal Revenue Service
has issued Revenue
Procedure 2003-22, which allows home day providers to use a
standard meal and snack rate to calculate meal expense
deductions, rather than to compute actual meal expense
deductions.
Under the new provision, providers
may use standard rates for a maximum of one breakfast, one
lunch, one dinner, and three snacks per eligible child per
day, provided the meals are actually prepared and served.
(Children who live in the home may not be counted.)
However, providers who participate in the food
program may deduct from their taxes only the amount of
actual expenses which exceed the amount of reimbursement.
See current
reimbursement rates. For more information, you may visit the IRS website (www.irs.gov)
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