COPYRIGHTED MATERIAL What’s New for This Tax Year New IRS Safe Harbor Rule Beginning in 2013, providers can now choose to claim house expenses without any receipts on Schedule C (up to a limit of $1,500), or they can continue to claim their actual expenses on Form 8829. See page 9. Standard Meal Allowance Rate The standard meal allowance rates for 2013 are $1.27 for breakfast, $2.38 for lunch and supper, and $0.71 for snack. The rates are higher for Alaska and Hawaii. Standard Mileage Rate The standard mileage rate for 2013 is $0.565 per business mile. The 50% Bonus Depreciation Rule Providers who buy certain new items in 2013 may be eligible to use the 50% bonus depreciation rule. This rule lets providers deduct 50% of the business portion of the fol- lowing new items: • • • • • computers and office equipment furniture and appliances play equipment fences and driveways cars Purchases of a home, home improvements, and used items do not qualify. The item must be purchased new in calendar year 2013 and used in your business in 2013. The Saver’s Credit Low-income providers may be eligible to receive a tax credit for making a contribution to a retirement plan in 2013. This credit is in addition to the regular tax benefit received for making an IRA contribution. To be eligible for the credit, a provider must have an adjusted gross income of less than $59,000 if married and filing jointly, $29,500 if single or married and filing separately, or $44,250 if filing as head of household. For more information on tax changes, see the Family Child Care 2013 Tax Workbook and Organizer. For copies of all IRS tax forms and instructions, go to www.irs.gov. viii COPYRIGHTED MATERIAL