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The National Association of Child Care Resource & Referral Agencies (NACCRRA) and Child Care Aware do not endorse nor are we responsible for the information or materials posted on any of the resource’s websites.Once I Find Child Care, How Do I Pay for It?
February 25, 2008
After you've made the decision to use child care and you've found the best fit for your family, there is one more item that's important to think about. Child care is expensive. It will directly impact your child(ren), so you want to make sure you're making the best investment.
With higher quality child care you are more likely to find higher costs. As a result, you may find yourself wondering how you are going to afford it. While pre-planning and making adjustments to your lifestyle may ease the burden on your budget, sometimes it's just not enough.
There are options available to families to help. Here is some more information about those options:
- State Child Care Subsidy - You may be eligible for state-funded subsidy for child care. There are programs in every state, but guidelines for eligibility vary by location. Typically, child care subsidies are available to families who earn low incomes and are working and, in some cases, in school. If a family is eligible, the family pays part of the cost and the state pays the rest to the child care provider.
- Local Programs - Talk with your local Child Care Resource & Referral agency to see if a government agency in your area, a United Way, or other community or faith-based organization, provides child care scholarships or assistance.
- Employer/College Assistance - Ask if your employer provides scholarships, discounts to certain programs, or on-site child care at a reduced rate. If you are a student, you may find similar incentives on-campus or through your university.
- Child Care Program Assistance - Talk with your child care provider to see if scholarships, discounts, or a sliding fee scale are available.
- Pre-Kindergarten Programs - Some states are now offering free or low-cost Pre-K programs for 3- and 4-year-old children. You will need to check the availability and eligibility requirements for your state. The goal of these programs is to make sure children are better prepared for kindergarten, and they are offered in public schools or other child care settings.
- Head Start/Early Head Start - Head Start and Early Head Start are federally and sometimes state-funded programs. Families who use Head Start must meet federal poverty guidelines. Head Start is free and may be either full or part-day. Head Start's goal is to help children meet health and school readiness guidelines.
- Tax Credits (also see Are You Aware? Take Advantage of Tax Credits For Families) :
- Federal Earned Income Tax Credit - If you qualify for the EITC, you may be able to lower your taxes and possibly get money back. To qualify, you must be working full- or part- time and meet income guidelines based on your family size.
- Federal Child Tax Credit - Parents with children under age 17 may be eligible for the Child Tax Credit. You may receive money for each child for this credit. Income limits for the Child Tax Credit are much higher than the EITC limits.
- Federal Child and Dependent Care Tax Credit - If you have a child under the age of 13, and you owe federal taxes, this credit may help you cover a portion of these taxes.
- State Earned Income Tax Credit - Many states offer their own Earned Income or Child Tax credit. These credits are similar to the federal EITC. Check with your state to see what it offers.
- Dependent Care Assistance Programs - Some employers may offer Dependent Care Assistance programs. These programs allow you to have money (up to $5,000 a year) taken out of your paycheck for child care, tax-free. These programs help lower the taxes you pay during the year. But note: be careful not to put more money in to these special accounts than what you will use. If you do not use what you've put in the account by the end of the year, you will likely lose this money.
- Military Child Care Assistance - Through a partnership with the Department of Defense, NACCRRA offers military families child care assistance. This partnership allows active duty and/or deployed service members child care fees if they are unable to access child care on a military base. The program pays a portion of the family's child care fees directly to the child care provider. Eligibility criteria for the program varies based upon the service member's current status. For more information on this assistance program contact Child Care Aware® at 1-800-424-2246 and select the military child care option.
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