Q: If I pay a neighbor to paint my daycare with cash, how can I record this as an expense? Report as income, the amount you received from parents. You want to claim this large deduction. OCFS has awarded $208 million to 12,578 child care providers through the Stabilization 2.0 for Workforce Supports grant. Review the Instructions and Terms & Conditions prior to applying for each funding opportunity. 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. A: No! 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. Download our ebook to see why employee stipends are the most common new perk for remote & hybrid work. endobj
Q: May I use the standard meal allowance rate to claim food expenses for an employee that eats food while working in my home? After September 30, 2022, no additional CCSG awards will be made. As we all know, parents need access to safe, quality child care to get back to work. Q: Can I claim Social Security on my ex-husband? How do you determine your salary? Can I add the attic space in my time-space% calculation? Supporting Family Child Care to Prepare for Child Care Stabilization Grants Eligibility Application Recertification Questionnaire Training Grant Funds JaJJ+7@h&P8=?xv:jA!tOUa@J]uym@%|4YX2 |[:&= 3q;n#}Ab!72d KNOgl0q8\l0'dP!_"g8X`G6"%Wi{nP"D\-;@Oi1)+fd-
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&A##807[uCo3./kECuzS:zRsu[G q>+hL A: State applications will often use the word personnel when describing what the grant can be used for. [-i""c2Njkd-!&-b2bshR6f;N+5fHS&_0!MOJ
0:v#XGd1wIh{Q%WdKKCPc, ZV4sSY_jw`]0(YHyJ9[NAEqrs;2^XWH+S6MQSy6-&RVJe)rL n1WQr&Mw?TgQkCSu See the funding breakdown by state, tribe, and territory, and more information about the grant on the White House American Rescue Plan Funding Fact Sheet. Contact your local Child Care Resource and Referral agency to see if there are other grant programs. The Department of Children and Families (DCF) has allocated $351 million in funds for the Child Care Counts: Stabilization Payment Program to support Wisconsin's early care and education community. The corporation can deduct your wages and payroll taxes. So, this is not a requirement in Colorado. A: If you are self employed, look to see if you file IRS Form 1040SE. You would report $5,000 as income and $2,000 as an expense, and end up paying taxes on the difference, or $3,000. Can I add a roof for shade, electricity, for fans, light and screens against insects. You will have to withhold and pay payroll taxes on these amounts. Q: I need a new washer, dryer and water heater. Q: If I use the grant for my IRA, can I deduct 100% of this on my taxes? To receive grant funds, child-care providers must submit an application. When will I be notified of the new monthly grant amount that is effective October 1, 2023? Providers who received funding during the first round must complete an expenditure report before . 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. A: If you do child care out of your own home, you are entitled to depreciate your home. Law 117-2), signed on March 11, 2021, includes $23.97 billion for child care stabilization grants to be allocated to states, territories, and Tribes based on the current Child Care and Development Block Grant (CCDBG) formula. Important note: Although there is federal guidance on how the Stabilization grants are to be administered, each state may interpret this guidance slightly differently. Q: Can I use the Stabilization grant to purchase a home? A: I am sorry to hear this. Check with your state agency about this grant question. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. A: If you do so it wont impact your 2020 taxes. You may use grant funds to pay for an accountant or financial advisor. Q: My front steps/deck needs to be replaced because of rotted boards. A: You do not have to explain why you pay yourself and you dont need to show a loss. A: You can apply some of the grant money to cover lost revenue, but you cant deduct lost revenue as a business expense. A: You can use the Stabilization grant to pay yourself and then use the money to put an addition onto your home. Phase two will include application, awarding, and issuing of funding. Yes. I had a Delaware state license by March 21st, but not OCCL license until July 2021. 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. Investing in Iowa's Child Care (IICC) Funding Program A: Depends on what your state says. If its only used by your business, you can deduct 100% of the cost in one year. KidKare is a comprehensive record keeping program that includes an accounting section that allows you to keep track of all your income and expenses. Funds are distributed directly from your state via the Office of Child Care and, if all of your states spending and reporting requirements are met, there is no requirement to repay funds. Q: Is money I received from the Stabilization grant taxable income? Q: I am on the Food Program and I spent $100 a month for food, but am only paid $68 from the Food Program. Child care has received $54 billion since the start of the pandemic. Q: Can I use the grant to landscape my backyard to build a play set for the daycare? A: I dont know. You must treat people who help you care for children as your employees, subject to all the payroll taxes. <>/Metadata 2634 0 R/ViewerPreferences 2635 0 R>>
Each state has its own guidelinescheck your local government website to confirm: Who is eligible and how to apply for the grant. On March 4, 2020, the Governor declared a State of Emergency in California in response to COVID-19. Stipulations for what the funds can be spent on and how to properly report them. The NJ American Rescue Plan (ARP) Stabilization Grant is no longer accepting applications. A: No. ODJFS created the Child Care Stabilization Sub-Grants for these efforts. Can I still use the standard meal allowance rate or must they use the actual expense method? You can deduct all of the reimbursed meals and snacks as well as un-reimbursed meals and snacks. You want to know his address so you can send him a Form 1099 at the end of the year. But, if you pay yourself, you can then use this money to purchase a home. Q: Why is it better to pay yourself with the grant money and be taxed on it, instead of spending 100% of it exclusively on the daycare and pay no tax? You can use it for free during a 30 day trial period. For example, can I give one employee $500 and another employee $300 if they are not as productive? Even if I didnt get Form 1099? A: Write out a note that says, November 20th, 2021 paid Fred Jones $2,000 in cash to paint my daycare. Try to get him to sign it. 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). 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. How am I doing that? The answer is yes, these funds are taxable. Q: If I was audited, would they just audit my grant or my entire business? 2 0 obj
Whenever a provider sells her home, she will always have to pay tax on the depreciation you claimed, or were entitled to claim! Once you do that, you can then spend the money on a new roof. On another slide it says that state grants are taxable income. However, you can only deduct the time-space% of your mortgage loan interest in addition to deducting house depreciation. 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. This bill, based on President Biden's bold American Rescue Plan, provides $39 billion in desperately needed child care relief funding. You can treat this as a repair and deduct your time-space% of this cost in one year. A: Yes. You can use the grant money to pay yourself and then pay off the loan. Q: If I only have one child, can I still apply for the grant? KidKare is a comprehensive record keeping program that includes an accounting section that allows you to keep track of all your income and expenses. Wuo|E&\ttPVcZ27-d#XH%{a_mTfP
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p)Qk)LWIH67aJ9>jZ4V#^VQn'*T20Y';X+7sAOQ`+ZZ4&+!` Z+Z C2]/cLWIw<4mH:C7CQ9\x&KFX!8\Q4(mYO{N+CSLrcj'$"^)XG.aVa0WLT)&'q=y@xkJvh^A7T1Z A new 1099-NEC form for reporting non-employee compensation was introduced by the IRS for 2020. You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. On February 1, 2022, the Commission received an additional $1 billion of COVID-19 stimulus funding to the 2022 CCRF, bringing the total . A: You should absolutely take it. around the country, mostly small businesses, who were already operating on thin margins. Q: If I pay myself will I need to give myself a W-2? 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. Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. Like if something happens and you have close or choose to close. Q: If my husbands is disabled and collects Social Security Disability Insurance, will it change to regular Social Security when he reaches age 70? 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. This program doesnt just impact parents and childcare providers either. Clearly a couch meets that definition. It is also important for providers to know that not all business expenses are fully tax deductible. Q: Would you need a separate account to pay yourself? Can I reallocate some of this money so I dont have to pay income taxes? A: The remodeling of a room is considered a home improvement that you must depreciate over 39 years after applying your time-space%. When childcare providers struggle, this creates a ripple effect in the economy when families cant get childcare. However, even if it does push you into a higher tax bracket, it only means you will pay more in taxes on the grant amount that is in the higher tax bracket. This is clearly the case if you were receiving the lower Tier II reimbursement rate before July. How to Use Child Care Stabilization Grant Funding to Support Your Home-Based Setting. Q: What do I need to do if I dont think my tax preparer properly paid my Social Security/Medicare taxes? Buy a new vacuum cleaner, front door porch light, replace old gutters, large kitchen appliances, install a new kitchen island? 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? A: Yes. A: Yes, a staff bonus must go through normal payroll, which means you are withholding payroll taxes in the same way as you process wages. 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: Can I use the grant to replace my rock driveway with a paved driveway? A: The standard meal allowance rate has been in effect since 2003. Funds are in place so every eligible program can receive one grant per facility/site. Q: Is there a thing such as too many hours when claiming hours when children are not present in my home? 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. Q: How do I find out where to apply for this grant? 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: RI DHS aims to approve two stipends to all eligible providers, depending upon fund availability. A: If its not permanently attached to the land you can deduct the business portion of the cost. What is the SC Building Blocks Grant? Although your chances of being audited are very remote, even in your situation, it is good advice to try to show at least a small profit three out of every five years. 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." Subsidized Child Care Stipends. She can deduct these expenses from the taxes she owes, so she will not owe additional taxes if she receives the grant. %
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Q: My business is an S Corporation. A: This language does not mean you are required to use the grant money to lower your tuition. 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 . A: Each state has its own rules about this, so I dont know the answer for your particular state, sorry. 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. Can I deduct this? A: Installing a new driveway or repairing it would both be considered a repair, not a home improvement. Such a record could say, February 23, 2022 - $4,000 pay myself with the Stabilization grant.. You do not have to pay back the Stabilization grant. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. But, they will reduce your federal and state taxable income. Discounts, scholarships and refunds are not tax deductible. NOTE: Child Care Stabilization Grant payments may be taxable. You just pay yourself because you are the owner. The CCSG application is now closed. Contribute to a SEP IRA or Roth IRA? The amount your reduced tuition would have no impact on your taxes. The purpose of STABLE is to respond to the urgent need to stabilize the child care sector in Georgia. 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 This blog explores the tax implications of the American Rescue Plan Act (ARPA) Child Care Stabilization Grants for Home-Based Child Care Providers. 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. Can I use the grant money for these expenses? It says that state grants are taxable income old gutters, large kitchen appliances, install a new roof any. The federal guidance says you should give parents tuition relief, to extent... Already operating on thin margins: Write out a note that says, November 20th, paid. 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