Standard Meal Allowance for Home-Based Childcare Providers

Substantiation of the cost of meals furnished by Childcare Providers is a substantial burden to accurately keep track of for business food expense. It is extremely time-consuming for family Childcare providers, particularly when the food purchase must be allocated between business use and personal consumption.

To reduce this burden, in 2002 the IRS provided guidance to establishing a standard meal allowance rate allowing the Childcare Provider to choose between the standard allowance or the actual expense methods for claiming their food expense.

The standard meal allowance rates for 2006 are $1.06 for breakfast, $1.96 for lunch and supper, and $0.58 for snack.