Childcare subsidy aids the raising of children. In today’s world, we start budgeting for the little new member even before they have arrived. However, the prediction for childcare costs has multiplied during the last few years. So, people are spending 20% of their annual income for their children’s care. Also in some areas, the childcare costs may reach the cost of the rent and many families have to rent a home instead of owning one.
However, there is good news. There are multiple options to help you give your child quality care. So, you have to determine which option you would choose for lowering child-raising costs.
Government Programs And Childcare Subsidy
State Assistance Subsidies
For offsetting childcare costs, the federal government provides revenue to each state. However, the aid varies widely within the families. Some grants mention strict guidelines for income. It is mostly for families where the children’s ages are lesser than 13. Only if any child has a disability, then the age limit may extend.
So before applying for these childcare subsidies, check all requirements. You will find many subsidies that provide home-based care. However, some subsidy providers accept only daycare centers.
Military Family Assistance In Childcare Subsidy
Members of the Department of Defence and the military get subsidies from the federal government. Eligibility for these military family subsidies is determined by an agency or the branch of service.
Earned Income Tax Credit
For low-to-moderate wage earners, the EITC tax credit is available. So, if you belong to that income threshold, then get credit, ranging from a few hundred to thousands. It depends upon the number of children you have and your filing status.
Child Tax Credit
For maximizing your money for childcare, you should take advantage of the child tax credit. When your child is born, the child tax credit will be applicable to you, up to $2,000 for every child who is under 17.
Employer Subsidy Programs In Childcare Subsidy
Childcare Network Programs
With childcare providers, many companies have established relationships. So the employees get some discount offer if they use the providers from that established network. You can get both short and long-term childcare providers.
Dependent Care Accounts
The federal government offers these flexible spending accounts to employees through the employer. So, if your job permits Dependent Care Account, then you can keep aside up to $5,000. Use pre-tax dollars for child care expenses. If you and your better half both have access to FSA, then you get a $5,000 family limit. However, you can obtain $2,000 in tax savings after reaching a maximum in the combined contribution.
Childcare Subsidy Program For Students
Subsidies Sponsored By School
If a parent is a student, then, some school in the states offer the student financial assistance to pay for the childcare. For example, Corvallis’s Oregon State University offers a plan to the students with a child. It helps students to pay for many types of care. For eligible students, some universities offer on-campus low-cost childcare.
In some of the states, there are childcare provisions for degree-seeking students. But these grants are most often distributed to various offices with different names. If you are in Massachusetts, the Executive Office of Education will issue your funds. For students in Utah, the Office of Child Care issues the fund.