A Parent's Guide to Child Care Funding

Are There Programs To Help You Pay For Child Care Costs?

Three Programs May Help You With Child Care Costs:

 
  1. child care subsidies;
  2. child and dependent care tax credit; or
  3. employer-supported benefits.

 

Child Care Subsidies
Child care subsidies are funds that help pay part of the cost of child care. Your county Department of Social Services  determines family eligibility based on income, reasons for needing day care, and your child's age and individual needs.

 
  • Income - Families must meet low income guidelines set by the state Department of Social Services. Income levels vary by locality and by funding program.
  • Reasons for Need - Your family must need child care for one of the following reasons. The parent or primary caretaker is:
    • working;
    • attending an approved educational program or job training activity;
    • seeking work; or
    • ill or incapacitated.
  • Child's Age - In general, the child needing day care must be six weeks to 12 years old. Exceptions are made for handicapped children who cannot care for themselves and for children under court supervision.
 

If You Receive A Subsidy, Can You Choose Any Child Care Program?
In most cases you can select any legal child care provider. However, if you receive a subsidy, your degree of choice may vary depending on the source of funding.

Will These Subsidies Pay For All Child Care Costs?

There is a sliding fee scale for child care costs based on income and family size. You may need to pay some part of the cost.

Where Do You Get This Help?

Apply through your State Human Resources Administration or your county Department of Social Services.

 Government Tax Credits

Child And Dependent Care Tax Credit

You may be able to deduct part of what you pay for child care from your state and federal tax returns. Families of all income levels are eligible. You may qualify for a total Child and Dependent Care Credit of up to $1,440 [*All income levels and tax credit figures are based on federal regulations for the 1992 tax year.]

if you:

  • pay child care costs for one or more children under age 13 residing with you; and
  • need the care to enable you to work or look for work.
You need to file a tax return to receive this benefit. However, you do not need to file an itemized return.

Earned Income Tax Credit

The federal government offers a tax credit of up to $2,211*to low income, working families with children. You do not need to owe taxes to receive this benefit, but you do need to file a tax return. Generally, the lower your income, the larger the credit. To qualify, your annual family earnings must be under $22,370.*

 Employer Supported Benefits

Many employers offer benefits and supports to their employees that may help with child care needs in several ways:

 
  • providing services by operating child care facilities or supporting in various ways the availability of child care at or near the work site;
  • providing child care resource and referral services;
  • implementing flexible personnel policies; or
  • helping employees pay for care through vouchers or dependent care assistance plans.
Ask at your place of work if any of these benefits are offered.

If you have any questions, contact your State Department of Social Services or the IRS
 

Legal:

Please note that the child care providers listed with TLC Child Care Locators (ChildCareCenters.org) are listings only and are not recommendations.  The information provided by TLC Child Care Locators is believed to have come from reliable sources, including the facilities themselves or those open to the public domain.  However, the facilities shown are listings only.  In no way does TLC Child Care Locators, any site partners, or any sponsors endorse, license, nor otherwise recommend lists found on TLC Child Care Locators Web Site.  TLC Child Care Locators exists as a first step for parents, and is not intended as a recommendation of any kind.  We encourage you to contact the sources themselves for the most accurate information.  We also encourage you to contact local Day Care Licensing Agencies to check records of Child Care Providers that you are considering.