2012-2013 Food Program Reimbursement Rates Announced

Here are the 2012-2013 Child and Adult Food Program reimbursement rates for family child care providers. These rates will be in effect from July 1, 2012 to June 30, 2013.

I encourage all family child care providers to join the Food Program. You will always be better off financially if you do.

Some providers don't want to join the Food Program because they will pay more in taxes or because they don't like doing extra paperwork. Read my article, "The Three Most Common Objections to the Food Program" to see why you will always come out ahead if you join.

 

Tier I - All states exept AK and HI    Tier II - All states except AK and HI

Breakfast $1.27                                                       Breakfast $.46

Lunch/supper $2.38                                             Lunch/supper $1.44

Snack $.71                                                                Snack $.19

 

Tier I Alaska                                                Tier II Alaska

Breakfast $2.03                                                       Breakfast $.72

Lunch/supper $3.86                                              Lunch/supper $2.33

Snack $1.15                                                               Snack $.31

 

Tier I Hawaii                                                Tier I Hawaii

Breakfast $1.48                                                        Breakfast $.53

Lunch/supper $2.79                                               Lunch/supper $1.68

Snack $.83                                                                Snack $.23

These higher rates represent a 2.6% increase over 2011-2012. The rate increases are based on the average cost of food served in the home as reported by the Consumer Price Index. 

Claiming Food Expenses

The above rates represent what you will receive in reimbursements from the Food Program. They do not represent what you can deduct as food expenses. When you claim food expenses you can use the Standard Meal Allowance Rate or an actual food cost method. See more.

If you use the Standard Meal Allowance Rate to calculate your food expenses, you will use the Tier I rate in effect at the beginning of the calendar year. Therefore, use the above Tier I rates for you 2013 taxes. 

For tax year 2012 use the Tier I rates in effect at the beginning of 2012: $1.24 breakfast; $2.32 lunch/supper, and $.69 snack. Alaska: $1.97 breakfast; $3.76 lunch/supper, and $1.12 snack. Hawaii: $1.44 breakfast; $2.71 lunch/supper, and $.81 snack. See more.

All child care providers, whether they are licensed or not, even if they receive the lower Tier II reimbursement rate, can use these higher Tier I rates to claim food expenses.

Remember to keep a daily record of all meals and snacks you serve in your business, not just the meals that you are reimbursed for by the Food Program. You are entitled to deduct as food costs on your tax return up to one breakfast, one lunch, one supper, and three snacks per day, per child, if you serve them. For more on how to claim food expenses - here.

Image credit: gilmerfreepress.net

For more about reporting food program reimbursements and claiming food expenses, see the Food Program and Food Expense section of this blog and my book Family Child Care Record Keeping Guide.

Comments

[Leslie]

My food program sponsor used the 2011-2012 reimbursement rates for the entire year of 2012 instead of increasing them in July, can I claim the difference along with my other non-reimburesed meals/snacks as a deduction?

[tom]

Are you saying that your sponsor did not increase your reimbursement amounts as of July 1, 2012? If so, they broke the law and you should demand the higher rate for the last half of the year. You can claim food expenses in 2012 using the $1.24 for breakfast, $2.32 lunch/supper and $.69 for snacks for all the meals in 2012.

[Leslie]

That's right, they didn't increase reimbursement amounts as of July 1, 2012. They used the $1.24, $2.32, $.69 for all of 2012, and I was thinking they should have increased to $1.27, $2.38, $.71 as of July. So I should contact them to get payment for that difference from July 1-Dec 31? When I was figuring for my non-reimbursed snacks/meals, I used the higher rate from July on, is that correct? Thanks so much for your help!!!

[tom]

Yes, contact them immediately. If they don't pay you the difference, contact your state agency that oversees Food Program sponsors. Don't use the July-Dec rates for 2012. These are the rates for 2013. Use $1.24, $2.32 and $.69 for all of 2012.