It’s a well-known fact that childcare is expensive. However, there are several helpful childcare subsidies that ease your financial load so you can afford the best care for your child!
Child Tax Credit
You become eligible for the child tax credit as soon as your child is born. A $3,600 tax credit is given for children under 6 years old and a $3,000 tax credit for every child under the age of 18. There are several factors that impact your eligibility, but you can determine your eligibility with a 10-minute eligibility screen.
Child and Dependent Care Tax Credit
Working families are eligible for the Child and Dependent Care Tax Credit. Using the IRS Form 2441, you can itemize up to $8,000 in childcare expenses per child. This gives you $1,600 in tax savings per child.
Child Care Assistance Program (CCAP)
The Kentucky Division of Child Care started CCAP so children could receive quality child care while their parents work. There are basic eligibility requirements you and your child must meet, but enrollment is easy to complete. You can take a prescreening tool or apply for benefits here.
Dependent Care Account
Some jobs offer a Dependent Care Account. This allows you to put aside $10,500 in pre-tax dollars that you put towards childcare. A Dependent Care Account varies depending on your employment. For more information, contact your Human Resources department to see if you qualify and how to enroll.
Using one or more of these subsidies can significantly cut your childcare expenses so you can afford the quality care and preschool your child deserves.
If you’re looking to give your child a head start in school, contact Children’s Academy Childcare and Preschool today!