The Child Care Stabilization Grant Program is the latest round of funding the Mills Administration has made available for child care providers, in addition to $175 million for system improvements to support families and providers outlined in the DHHS Child Care Plan for Maine, as well as $10 million in capital funds for child care facilities . If they are present 24 hours a day, five days a week, that represents 120 hours that you can count. But you can pay yourself and then use that money to fund your IRA. Claim this as a house repair on Form 8829. How do you determine your salary? Can I deduct this? The EIDL loan you must pay back. For specific questions about the NJ ARP Stabilization Grant application, contact: Email: njchildcaregranttechsupport@mtxb2b.com Phone: 1-855-590-2478 For questions about policies, grant eligibility requirements or if you need technical assistance with estimating your monthly expenses, contact: Email: DFD-ChildCareGrants@dhs.nj.gov On another slide it says that state grants are taxable income. The government has taken notice, and their answer is The Child Care Stabilization Grant, part of the American Rescue Plan Act (ARPA). A concrete slab in the backyard used for basketball, skating, etc.? 4 0 obj No! Is this grant counted as income? Is the Child Care Program Stabilization Funding taxable? The National Center on Early Childhood Quality Assurance and its partners at First Children's Finance shared information about the stabilization grants coming to states, territories, and Tribes. Can I reallocate some of this money so I dont have to pay income taxes? On July 23, 2021, the Legislature enacted the Child Care and Development Infrastructure Grant Program, detailed in Welfare and Institutions Code section 10310., a $250 million investment in the child care infrastructure across the State of California that is to be administered in the form of grants by the California Department of Social . June 02, 2021. Are the C3 Child Care Stabilization grants taxable? Here is the recording of my recent webinar, Child Care Stabilization Grants and New Tax Changes for 2021., The tax implications of the Stabilization Grants, What expenses can be deducted in your business. Q: Can I use this grant to pay myself? Q: We started adding more kitchen cabinets this summer. Here is the recording of my recent webinar, "Child Care Stabilization Grants and New Tax Changes for 2021." The webinar covered: The tax implications of the Stabilization Grants What expenses can be deducted in your business How to calculate your Time-Space% And more Here's a copy of the power point slides. This webinar, presented by child care business expert, Tom Copeland, will cover all the new tax changes affecting family child care providers for 2021. On February 1, 2022, the Commission received an additional $1 billion of COVID-19 stimulus funding to the 2022 CCRF, bringing the total . You must treat people who help you care for children as your employees, subject to all the payroll taxes. Child Care Stabilization Fund 5 Q: How many rounds of payments will be made? Q: One of my bathrooms was flooded. Q: Do I include the square footage of my garage that is not attached to my home as part of the total square feet of my home? Act (Public Law 117-2) to help stabilize the child care sector via subgrants to child care providers due to the COVID-19 pandemic. Important note: Although there is federal guidance on how the Stabilization grants are to be administered, each state may interpret this guidance slightly differently. In this blog, Anna Mercer-Mclean details how she has utilized funding to increase salaries and benefits for her employees and her strategies to sustain providing ECE professionals their worth. It affects how we all work when we can work and for many, why we work. Can I still use the standard meal allowance rate or must they use the actual expense method? Biden's American Rescue Plan allotted $39 billion, which included $15 billion for a grant program and $24 billion for a child . If they say you cant use it for this purpose, you can pay yourself and then use the money to rewire. We are sharing the resources below which are designed to support home-based child care providers as they prepare their taxes, including guidance for handling relief funding, including the PPP. The following examples are meant to illustrate the different ways in which a family child care provider might utilize the grant and the tax implications of each scenario. A: Only if you already have a post-secondary degree. You just pay yourself because you are the owner. Take the money! WHAT: The department's Early Childhood Division is using funding streams to support the health and sustainability of North Dakota's child care sector. Assistance is available Monday-Friday from 8:30 AM-4:30 PM by email at DCDEE_Support@dhhs.nc.org or phone (919) 814-6300, Option 2. Check with your state agency about this grant question. Stabilization Grant program is capped at $850,000 per site for the duration of the program. A: You can claim expenses for your vehicle using either the standard mileage method or the actual expenses method. As long as you keep records showing you worked these hours, claim all the hours. So, this is not a requirement in Colorado. It may be the same or may not. Help is on the way! All programs will receive a 1099 for grant funds received. If after viewing this video and reading these questions and answers, you still have questions, feel free to send me an email at tomcopeland@live.com. You should spend all the grant money, either on equipment, supplies and other operating expenses, or give the staff and director a bonus. Menu. A: No! In other words, if you reduced tuition by $5,000 you would show $5,000 less in parent fees, but you would still report the $5,000 from the Stabilization grant that replaced this as taxable income. Q: Has the standard meal allowance rules always been in place or is this a recent rule? You will have to withhold and pay payroll taxes on these amounts. Q: We store a lot of our dcor and child care stuff in our attic. But, you can pay yourself first and then use the money for these items. Q: Can I deduct the business portion of any item in one year regardless of the cost? Get more information about KidKare. Or, will I need to show a loss? stream Can I add the attic space in my time-space% calculation? Workforce Innovation Sustain Child Care Subsidy Operations Start-up & Expansion Paycheck Protection Retention of Child Care Staff If you cant get a clear answer from your state, you should pay yourself with the grant. Q: Do I have to take out payroll taxes to pay myself if Im an LLC or does every provider who is not incorporated still have to deduct from the check before paying ourselves? Q: Is the Paycheck Protection Program (PPP) taxable income? 4 0 obj Q: Are there any grants available to add on space to my home without getting a loan? In response to the COVID-19 public health emergency and its impact on the child care industry, President Biden signed the American Rescue Plan Act of 2021 (ARP Act). A: State applications will often use the word personnel when describing what the grant can be used for. Paying yourself involves nothing more than making a record indicating this. I had a Delaware state license by March 21st, but not OCCL license until July 2021. Q: How do I create an emergency fund with this grant? The plan includes $24 billion in child care stabilization grant funding for states, territories, and tribes to distribute within their state using the Child Care and Development Grant (CCDBG) formula. Distribution date Deadline; Cohort 1: (Center (100+) October 5, 2021 : October 18, 2021 at 11:59 p.m. CT: Cohort 2: Center (76-100) . The CCSG application is now closed. You can pay yourself with the EIDL loan. This bill, based on President Biden's bold American Rescue Plan, provides $39 billion in desperately needed child care relief funding. Q: Can I use the Stabilization grant to replace my old central air condition unit? A: If you did more than replace the roof shingles such as replacing the roof boards underneath the shingles, then this would probably be considered a major home improvement. You would be replacing lost tuition with grant income. Wuo|E&\ttPVcZ27-d#XH%{a_mTfP %bkTnwuB_k()JZ p)Qk)LWIH67aJ9>jZ4V#^VQn'*T20Y';X+7sAOQ`+ZZ4&+!` Z+Z C2]/cLWIw<4mH:C7CQ9\x&KFX!8\Q4(mYO{N+CSLrcj'$"^)XG.aVa0WLT)&'q=y@xkJvh^A7T1Z All organizations receiving funding must report this as income to your program. Under federal guidance, this clearly language clearly applies to a family child care provider, even if she has no employees. Distributing the funds to employees (most states require a portion of grant funds to be paid out to employees)? In a recent webinar hosted by the Office of Child Care Technical Assistance Network, national family child care business expert Tom Copeland provided an overview of the stabilization grants and how family child care homes can handle the tax implications. Our goal is to help your program become financially secure. Q: I need a new washer, dryer and water heater. Please consult your tax professional, if you have an income tax questions or concerns. (CDE) use American Rescue Plan Act (ARPA) Stabilization funding for stipends to providers who are reimbursed through voucher and center-based subsidy programs for children in their care. In other words if I use the standard meal allowance to claim my food expenses, wont this be the same amount as the reimbursements I received from the Food Program? For most providers, this would be about 30-40% in taxes. You can deduct all of the reimbursed meals and snacks as well as un-reimbursed meals and snacks. Can I still receive the Stabilization grant? To paint a picture, childcare centers today are facing decreasing revenues due to lower enrollment, higher expenses to operate safely during the pandemic and severe and ongoing staffing difficulties. This means you will pay some additional Social Security taxes, but it also means your higher profit will potentially increase your Social Security benefits. The purpose of STABLE is to respond to the urgent need to stabilize the child care sector in Georgia. This funding is subject to the same tax rules as regular CCDF funding. . Q: If I pay my assistant with the grant, do I still have to pay taxes on it? Not all applications are guaranteed to be approved. There is not law that requires you to stay in business. / Blog / General / child care stabilization grant taxable. around the country, mostly small businesses, who were already operating on thin margins.
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