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bcordes23
New Member

How do i deduct meals provided for home daycare - not W2 income

My wife watched a friend's child for several months - we included lunch and snacks separate from what she paid us.  Can I deduct that on my taxes?
1 Reply
RyanH2
New Member

How do i deduct meals provided for home daycare - not W2 income

Yes, if you provided the food which is a necessity to run a child care business then you can deduct it as a business expense.

Providers deduct the cost of food in several different places on their returns including, but not limited to, the "Cost of Goods Sold" line, the "Supplies" line, or the "Other Expenses" line. 

IRC Section 162 allows a deduction for food provided to the day care recipients. This amount is not limited by the 50% reduction imposed under IRC Section 274(n). 

Under IRC Section 262, no portion of the cost of food provided to the provider's family, including food consumed by the provider or the provider's own children, is allowed as a deduction.

To Enter Your Food Expenses:

1. Select "Business" at the top of the screen

2. Choose "Continue", then "I'll choose what I work on"

3. Select "Start" next to "Business Income and Expenses"

4. Select "Edit" next to your business name

5. Scroll down to Business Expenses

6. Now select "Start" next to "Other Common Business Expenses"

7. Select "Start" next to "Supplies"


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