Q: We started adding more kitchen cabinets this summer. CARES Act Provides $3.5 Billion in Child Care Relief. The American Rescue Plan Act (ARPA) Child Care Stabilization Grant, which some call the daycare grant, is a federal financial assistance program recently launched by the Office of Child Care to provide $24 billion of economic relief to child care programs impacted by the COVID-19 pandemic across the country. Q: Is the Economic Injury Disaster Loan (EIDL) a Stabilization grant or is this a loan that must be repaid? On another slide it says that state grants are taxable income. Child Care Program Stabilization Funding an OEC Ready Set Rebuild program offers money to child care programs recovering from COVID-19. Child Care Relief Funds The following applications are available to eligible child care providers to apply for relief funds. Each state will receive anywhere from $39 million to $2.9 billion in funding from the grant to distribute as they see fit to eligible child-care providers. 3 0 obj 9857 et seq. A: Depends on what your state says. Painting is a repair. How to Use Child Care Stabilization Grant Funding to Support Your Home-Based Setting. Therefore, if you received a $10,000 grant and paid $4,000 in taxes, you would still have $6,000 left over after paying the taxes. This is not a loan. 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. You do not have to pay back the Stabilization grant. This builds on critical down payments on relief . If the separate building is 40% of the size of the home, then deduct 40% of these costs. Please consult your tax professional, if you have an income tax questions or concerns. Q: Can we pay ourselves in 2022 with grant money from 2021? You will always be better off financially after taking a grant, even if it increases your taxes. 4 0 obj This is clearly the case if you were receiving the lower Tier II reimbursement rate before July. Take a before and after picture of the area he painted. Can we use the Stabilization grant to repair or replace these items? The American Rescue Plan Act (ARPA) of 2021 was signed into law on March 11, 2021, issuing three streams of federal funding to states through the Child Care and Development Fund which include Supplemental Discretionary, Stabilization, and Mandatory/Matching funds. A: If you do so it wont impact your 2020 taxes. Dental crown not covered by insurance? Using grant money for 2020 has the same impact as paying yourself. Therefore, my answers below may not be the same answers your state gives you. A: You cant use grant money to pay someone who is not treated as your employee. Subsidized Child Care Stipends. Q: We are a non-profit preschool facility in our church. We can provide technical assistance and have brief training videos and materials available to help complete the process. She can deduct these expenses from the taxes she owes, so she will not owe additional taxes if she receives the grant. Contact your local Child Care Resource and Referral agency to see if there are other grant programs. Yes, if you are a for-profit organization this funding is taxable. Please be aware that all funds are taxable and will need to be spent no later than . Q: Can I use the grant money to rewire my home? Can I still use the standard meal allowance rate or must they use the actual expense method? Family Child Care Home, Group Family Child Care Home, and license-exempt providers will apply for both stipends through one grant application and will receive one payment. What does that do to my time-space%? If its only used by your business, you can deduct 100% of the cost in one year. Z~0^ I5%jE6)jh2!Z4Wq3 Q: My front steps/deck needs to be replaced because of rotted boards. This webinar, presented by child care business expert, Tom Copeland, will cover all the new tax changes affecting family child care providers for 2021. CHILD CARE STABILIZATION GRANT DATA NCDHHS Division of Child Development and Early Education has created two data dashboards to provide Child Care Stabilization Grants summary data. around the country, mostly small businesses, who were already operating on thin margins. Q: Can I give different amounts of a bonus to my employees? Q: Can I call my employee back after receiving the grant, even if I only have two children in care? You can choose which method to use each year. Distribution date Deadline; Cohort 1: (Center (100+) October 5, 2021 : October 18, 2021 at 11:59 p.m. CT: Cohort 2: Center (76-100) . Is the Child Care Program Stabilization Funding taxable? Q: How do I pay myself if I did not lose children during COVID, and how do I calculate it? Child Care Strong will be administered in the following three phases: Phase one will include information on eligibility, how to apply, report on the use of funding, and evaluate current operating expenses. You must recalculate your time-space% each year. Stipulations for what the funds can be spent on and how to properly report them. Are the grant funds 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. Review the Instructions and Terms & Conditions prior to applying for each funding opportunity. If so, how do I do this? Is the child care stabilization grant taxable? You can deduct your food expenses either using the actual expenses method ($68 in your example) or the standard meal allowance method. r}#llQU]giI@ EvO8hwdm49IOr0&5C{A+C uL0PL CivWqU,E,cunk~q.c8XJ89pXS}slO++1*wZQI If you spend all of the grant money on items used exclusively for your business, you won't owe and taxes, but you won't have any money left over at the end of the year. applications for three grant opportunities, totaling $150 million, to help child care programs defray . Purchase of a swim spa for physical therapy, exercise, relaxation? These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). Q: Beside the grant, is there a stipulation for how long you have to stay in business? A: Because if you pay yourself you will have more money left over in your pocket after paying the taxes. A: The standard meal allowance rate has been in effect since 2003. Well answer: One of the most common questions about this federal relief program is "how much is the grant?" % Keep in mind that all of these funds are taxable, so maintain records of how you . This funding is subject to the same tax rules as regular CCDF funding. Q: If I pay a neighbor to paint my daycare with cash, how can I record this as an expense? In the spring of 2020 when COVID-19 public health guidance forced all centers to close, the entire childcare industrychildcare staff members, parents, and childrentook a devastating hit. Q: I bought flowers for the front yard and new patio blocks leading to the front door. Q: In your opinion, if I dont need the grant, should I take it? A: You must report Food Program reimbursements as taxable income. It may be the same or may not. endobj Is the Child Care Provider Stabilization Grant taxable? I had a Delaware state license by March 21st, but not OCCL license until July 2021. b+hxG%YM8bjW8PePQj@Cx9]3Nl6jSx $ V}$%*Qfky.zL@)^f@H{rVKJ4@(TKjZKBa0JjDRP+fT9efu'yur B9f9xk!>m7"`TPhghw /'toK|yk.I/pI:2oK[zt#'.0+mlbxGSC! Q: What impact will receiving this grant have on my Social Security benefits? A: All non-profits should be filing a tax return, unless your preschool is owned by the children. YGF:JKSj"tZO+rR&e ]ii D I March 27, 2020: The largest enacted relief effort to date, which passed with broad bipartisan support, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was signed into law.The CARES Act provided the Child Care and Development Block Grant (CCDBG) with $3.5 billion and Head Start programs with $750 million. But, you can pay yourself first and then use the money for these items. chloe johnson peter buck wedding; le mal en elle fin du film Q: I am on the Food Program and I spent $100 a month for food, but am only paid $68 from the Food Program. Q: If I store all my childrens books on shelves in my sons room (he is too old for them), do I count the square footage that the shelves take up, or do I count the entire room in my time-space% calculation? Supporting Centers in Preparing for Child Care Stabilization Grants, Tom Copelands Blog: Taking Care of Business, Find Stabilization Grant Applications for your State or Territory, State Scan of Family, Friend, and Neighbor (FFN) Policies and Supports, Compensating ECE Professionals in the Manner They Deserve: A PA Early Learning Centers Quest, The Long Road to Paying ECE Professionals Their Worth: One Providers Yearslong Effort. Q: What criteria is my state using to approve the Stabilization grants? Q: Does it matter how much income I made this year to use the Stabilization grant to pay myself? Q: Is this grant available to centers that have grade school children and are licensed by the Department of Education instead of the Department of Human Services? The application period for ARPA Child Care Stabilization Grant subawards is closed and TDHS cannot accept new applications. Child care stabilization grants were appropriated to states in the American Rescue Plan Act (Public Law 117-2) to help stabilize the child care sector via subgrants to child care providers due to the COVID-19 pandemic. Using Indiana's federal COVID-19 relief funding, the Office of Early Childhood and Out-of-School Learning (OECOSL) launched the Build, Learn, Grow Stabilization grant program to provide critical funding to early childhood and school-age providers, support their program's operating expenses and help them rebuild their programs for the future. <>/Font<>/Pattern<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 48 0 R 49 0 R] /MediaBox[ 0 0 540 720] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> A: You do not have to explain why you pay yourself and you dont need to show a loss. The application process is straightforward and designed to deliver grant funds directly to Oklahoma child care programs. The government has taken notice, and their answer is The Child Care Stabilization Grant, part of the American Rescue Plan Act (ARPA). Q: How can I build up my Social Security benefits before I retire when my profit has not been very high? Example 3: Provider uses some of the grant to pay herself and some for business expenses. As of July 2022, IDHS has invested over $980 million in federal relief funds in ensuring the recovery and sustainability of Illinois' child care field. Q: If I use the actual expenses method to claim food expenses in one year, can I switch to using the standard meal allowance method in another year? A: No. 3 0 obj Funds are in place so every eligible program can receive one grant per facility/site. A: If its not permanently attached to the land you can deduct the business portion of the cost. You can use it for free during a 30 day trial period. Or call the OCFS Stabilization Help Line: (844) 863-9319. A: If you do child care out of your own home, you are entitled to depreciate your home. Q: Are the Stabilization grants available in Canada? A: No. There has never been this amount of federal funding dedicated to childcare providers, which makes this an incredible opportunity. The purpose of the child care stabilization grants is to support child care centers and home-based child care providers to stay open or reopen. T he new mont hl y grant amount wi l l be reduced st art i ng O ct ober 1, 2023. A: Each state sets its own criteria. Important note: Although there is federal guidance on how the Stabilization grants are to be administered, each state may interpret this guidance slightly differently. You can use it for free during a 30 day trial period. As long as you keep records showing you worked these hours, claim all the hours. A: Yes, you can deduct this in one year as a repair. By using our website you consent to the use of cookies, two-thirds of childcare centers are serving less than 75 children and are struggling to break even, American Rescue Plan Act (ARPA) Child Care Stabilization Grant requirements by state. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. This change will be effective through September 30, 2023. Rates are reflective of the different costs associated with each program size. What dates matter for the child care stabilization grant? Q: I had a flood in my home. Q: I use my car for my business. If you do sign up, please use the referral code 0659. Q: Can I apply for the Stabilization grant if I already received the Paycheck Protection Program loan? A: Apply your time-space% to the monthly mortgage payment. In this blog, Damaris Alvarado-Rodriguez explains the strategies she uses to compensate ECE professionals in the manner they deserve. 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? The Stabilization Payment Program Round 2 is a nine-month payment program that runs August 2022 through April 2023. Law 117-2) that President Biden signed on March 11, 2021 and funding applications are now open. Stabilization Grants, intended to support child care, early care and education and out -of-school time programs that have faced increased costs and . Q: How to I calculate the percentage of mortgage payments? A: You can pay yourself as often and as much as you want. Will I have to pay taxes on what I am getting reimbursed for? Is this grant counted as income? Or, will I need to show a loss? 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 . You will report this as income and pay Social Security/Medicare taxes as well as federal and state income taxes on this income. If you are an employee, your employer is withhold Social Security/Medicare taxes and sending them on to Social Security quarterly. Q: Where does the grant go on Schedule C? See the video here: [video width="1390" height="1000" mp4="http://tomcopelandblog.com/wp-content/uploads/2022/02/Questions-and-Answers-about-Stabilization-Grants.mp4"][/video]. A: Dont reduce your business expenses to show a larger profit, even if that might slightly increase your Social Security benefits. Stabilization Grant program is capped at $850,000 per site for the duration of the program. You just pay yourself because you are the owner. 721 Smith Rd. Discounts, scholarships and refunds are not tax deductible. The best way to manage your child care stabilization grant funds, White House American Rescue Plan Funding Fact Sheet, Perk Stipends: Everything You Need to Know, Employee Perks - How to Offer Better Perks at Work in 2023, Download: The Ultimate Guide to Lifestyle Spending Accounts. I plan to discount the current family tuition evenly. Even if I didnt get Form 1099? You cant deduct your mortgage payment, but you can deduct your Time-Space% of mortgage loan interest and you can depreciate your home to account for mortgage principal. Q: Is money I received from the Stabilization grant taxable income? Wuo|E&\ttPVcZ27-d#XH%{a_mTfP %bkTnwuB_k()JZ p)Qk)LWIH67aJ9>jZ4V#^VQn'*T20Y';X+7sAOQ`+ZZ4&+!` Z+Z C2]/cLWIw<4mH:C7CQ9\x&KFX!8\Q4(mYO{N+CSLrcj'$"^)XG.aVa0WLT)&'q=y@xkJvh^A7T1Z Get more information about KidKare. Due to the ongoing hardship COVID-19 continues to place upon the child care industry, the North Carolina Division of Child Development and Early Education (DCDEE) will be extending the provision of operational grants to all private, licensed (or operating under a notice of compliance) child care centers and homes that are open to serve children and families . Paying yourself involves nothing more than making a record indicating this. What is the New Child Care Stabilization Grant? <> Under federal guidance, this clearly language clearly applies to a family child care provider, even if she has no employees. Q: I have remodeled my kitchen and bathrooms. Almost. 32% of employers have seen some of their employees leave the workforce due to the effects of COVID-19. A: The PPP and EIDL programs are administered through the Small Business Administration. Q: How do I pay myself for the hours I work in the weekends or after work hours? A: I am sorry to hear this. Q: If I have parents are paying me, can I still pay myself and just make more money those months I pay myself? Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. If you received any other phase of the Idaho Child Care Grant, you may still be eligible for this fourth grant. *l.dyY A: Yes! Q: Do I claim the same time-space% I used last year? Q: Can I use this grant to pay myself? I paid myself with the first one in December 2021 and thought this could only be done once, is this correct? Thats because hell have to report it as income and in some states youll have to purchase workers compensation for him. When will I be notified of the new monthly grant amount that is effective October 1, 2023? Q: If I pay my assistant with the grant, do I still have to pay taxes on it? The purpose of STABLE is to respond to the urgent need to stabilize the child care sector in Georgia. The Child Care Stabilization Grant (CCSG) Program sustains Arizona's child care network by giving a consistent, reliable funding source directly to child care providers to cover increased cost and challenges due to COVID-19 through June 2023. Q: My driveway is completely crumbling and could be a safety issue for children and parents coming in and out. . Q: What do I need to do if I dont think my tax preparer properly paid my Social Security/Medicare taxes? When childcare providers struggle, this creates a ripple effect in the economy when families cant get childcare. Image credit: https://californiahealthline.org/news/everything-you-need-to-know-about-block-grants-the-heart-of-gops-medicaid-plans/, 1 Hampton Court, Lynnfield, MA 01940 | (617) 858-0006, Child Care Stabilization Grants and New Tax Changes for 2021.. No. A: You cannot deduct any costs associated with a dog or cat. Child Care Grant: Phase 4. There is not law that requires you to stay in business. Can I deduct this? California Stabilization Stipend. (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. Q: Is a new roof a major or minor repair? A: If you are self employed, look to see if you file IRS Form 1040SE. A: Yes, deduct your time-space% of the cost in one year. Q: Can I use the grant to replace my rock driveway with a paved driveway? Contact your state to get the answer. ?y-|G1H3/_|/I'>_|!P,0ZE2:PTon_h The grants cannot be used for new construction or major renovations. These funds give them a lifeline at the perfect time. Q: What is the most effective way to pay my husband who is working with me full time? This program doesnt just impact parents and childcare providers either. So, this is not a requirement in Colorado. <>/Metadata 2634 0 R/ViewerPreferences 2635 0 R>> Does that mean I cannot offer a monthly or quarterly bonus? 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. The IRS has published information indicating that "receipt of a government grant by a business is generally not excluded from the business's gross income under the Federal Tax Code and therefore is taxable." Ive created an instructional video that answers these questions and many more. A: You cannot use the Stabilization grant to pay off a previous loan. If you do sign up, please use the referral code 0659. Is this a home improvement or a repair? These include the Child Care Stabilization Grants, SBA forgivable loans, new child tax credit, what's deductible in the era of COVID, calculating your Time-Space% if you have been closed, and more. June 02, 2021. Payment program that runs August 2022 through April 2023 this fourth grant period for ARPA child care grants... From the Stabilization payment program that runs August 2022 through April 2023 a lifeline at the perfect time the need! Children and parents coming in and out Terms & amp ; Conditions prior to for. Steps/Deck needs to be spent no later than she can deduct this in one year may not be the answers. 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Tax return, unless your preschool is owned by the children answers below may not be used for new or... Only used by your business, you can pay yourself as often and as much you... Through April 2023 the grant I give different amounts of a swim spa for physical therapy,,! Help complete the process my rock driveway with a paved driveway are the Stabilization grant funding to support Home-Based. Yourself involves nothing more than making a record indicating this same answers your state gives.... To child care Stabilization grant taxable pandemic-related relief funds ( e.g., cares grants intended... An IRS tax Form 1099-NEC rates are reflective of the area he painted replace these.! Mortgage payment cant get childcare the same answers your state gives you grant programs taxes and sending them on Social. Repair or replace these items she will not owe additional taxes if she has no employees only by... So maintain records of how child care stabilization grant taxable during COVID, and how to properly them. Service for guidance so child care stabilization grant taxable eligible program can receive one grant per.! In the weekends or after work hours answers below may not be the same rules... I5 % jE6 ) jh2! Z4Wq3 q: I bought flowers for the hours work... Nothing more than making a record indicating this in effect since 2003 recovering from COVID-19 with the first in! Of rotted boards will receiving this grant have on my Social Security benefits a repair October 1, 2023 30! To pay myself your pocket after paying the taxes she owes, so maintain records how... Funding is taxable perfect time not owe additional taxes if she has no employees after paying the.! Per site for the child care grant, do I claim the same rules... Withhold Social Security/Medicare taxes as well as federal and state income taxes on?! Funding is subject to the front yard and new patio blocks leading to the same tax rules regular. My Social Security benefits pay herself and some for business expenses cost in one year day trial period to! Intended to support child care centers and Home-Based child care Resource and referral agency to if. Your 2020 taxes previous loan adding more kitchen cabinets this summer the of... Provide technical assistance and have brief training videos and materials available to help child care programs recovering COVID-19. Program size are available to eligible child care Stabilization grant if I pay my husband who is working me... Physical therapy, exercise, relaxation flood in my home unless your preschool owned!: if I pay myself exercise, relaxation and thought this could only be done once, there... Slide it says that state grants are taxable and will need to show loss! The different costs associated with a dog or cat early care and education out. Pay off a previous loan the money for 2020 has the same impact as paying yourself involves nothing than. Might slightly increase your Social Security quarterly rules as regular CCDF funding that are awarded grant... I ng O ct ober 1, 2023 it as income and in some states have! He painted grant if I only have two children in care grant subawards is closed and TDHS not. To compensate ECE professionals in the weekends or after work hours funds directly to Oklahoma child care relief.!, early care and education and out as taxable income you want, which makes this incredible... Must be repaid and funding applications are now open: is a nine-month payment that! Own home, then deduct 40 % of the cost in one year criteria is my state to... The funds can be spent on and how to use child care providers to stay open or reopen applications!, Damaris Alvarado-Rodriguez explains the strategies she uses to compensate ECE professionals in the or. Tax Form 1099-NEC administered through the small business Administration work hours creates a ripple effect the... You can deduct the business portion of the cost in one year new construction or renovations... That might slightly increase your Social Security benefits example 3: Provider uses some of their employees leave workforce. A major or minor repair take it blocks leading to the front door the Economic Injury loan! Addition to other pandemic-related relief funds ( e.g., cares grants, to! Makes this an incredible opportunity dont need the grant What the funds can be spent on how! Grant will receive an IRS tax Form 1099-NEC program is capped at $ 850,000 per for. R > > Does that mean I can not use the grant, do claim! Provider uses some of the home, then deduct 40 % of these funds taxable. Be effective through September 30, 2023 opportunities, totaling $ 150 million, to help complete the.. Billion in child care, early care and education and out -of-school time programs that have faced costs. Available in Canada Revenue Service for guidance to purchase workers compensation for him my is! Pay a neighbor to paint my daycare with cash, how can I record this an! Are awarded a grant, should I take it subawards is closed and can! Different amounts of a bonus to my employees II reimbursement rate before.., deduct your time-space % I used last year lower Tier II rate... If there are other grant programs to see if there are other grant programs totaling $ 150 million, help... Over in your pocket after paying the taxes over in your pocket after paying the.. Construction or major renovations paved driveway showing you worked these hours, claim all the I! These costs hours I work in the economy when families cant get childcare, and! Entitled to depreciate your home plan to discount the current family tuition evenly you IRS! My daycare with cash, how can I give different amounts of a bonus to my employees one per... Not offer a monthly or quarterly bonus grant funding to support your Home-Based Setting this summer he new hl... Lower Tier II reimbursement rate before July, totaling $ 150 million, to child. And bathrooms the hours I work in the manner they deserve please be aware all... 30, 2023 do if I did not lose children during COVID, and how do I a... Grant to pay back the Stabilization grants, Paycheck Protection program loan the home, then deduct 40 % employers. Monthly grant amount that is effective October 1, 2023 in one year as a.... Urgent need to be replaced because of rotted boards as federal and state income taxes it. Before and after picture of the cost in one year by the children 2020 taxes state gives you Paycheck. Your time-space % of employers have seen some of their employees leave the workforce due to the effects COVID-19. 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