2023 Tax Changes Affecting Family Child Care

• The standard mileage rate is 65.5 cents per business mile.
• You can also deduct parking, tolls, business portion of loan interest and property tax.
• The standard meal allowance rate for 2023 is $1.66 breakfast, $3.04 lunch/supper and $.97 snack.  Use these rates for all meals and snacks served in 2023 (including meals and snacks not reimbursed by the Food Program)  You may deduct up to one breakfast, one lunch, one supper and three snacks per day, per child.  No food receipts are necessary.  You must keep track of the meals and who you are claiming the meals for.
• You can deduct a repair in one year
• You must always depreciate your home!
• In 2023 Bonus Depreciation is being phased out, therefore, a business owner can now only claim 80% of their assets’ bonus depreciation.  It will continue to drop by 20% each subsequent year.