How do I deduct the costs for lunch provided to child provider at family home daycare

[TimXia]

My wife owes a family home daycare. I have found the standard deduction rate (Breakfast, Lunch & Snack) for each child, not child provider. How do I deduct the costs for lunch provided to child providers (owner and helper) at family home daycare?

[ToddL99 · Accepted solution]

Use actual food costs (or a reasonable estimate) and enter in the  "Other Miscellaneous Business Expense" interview in Business > Business Income and Expenses > Business Expenses. You cannot use "standard per diem meal rates" to calculate meal costs when you are providing the meals directly.

The IRS standard per diem meal rates apply to employee meals while traveling, not when working at their normal place of business. If you choose to feed the child-care providers at your home child-care facility, you have complete control and visibility over meal costs and 'actual cost' is what you are permitted to deduct.

[Aaron Maez]

This answer is incorrect. The question is regarding standard meal deductions for daycare providers per IRS Publications 587. Please do your homework before responding to a question.

[KrisD15]

For Tax Year 2024, the entire cost of meals for children at a daycare can be expensed.

Enter that under "Business" "Business Income and Expenses" "Other Common Business Expenses" "Meals" "Meals: 100% Limit"

HOWEVER, for Tax Year 2024, only 50% of the cost of meals for daycare staff can be expensed.

To expense meals for daycare staff workers, the amount you can claim is reduced to only 50%.

Enter this (the 50% amount) under

Business

Business Income and Expenses

Other Common Business Expenses

Other Miscellaneous Expenses

Type "50% of Provider Meals" or something similar and 50% of the total expense 

Please see page 13 of Pub 587 for more information.