More Support For Your Family
Discover More About Child Care Tax Credits,
Programs And Discounts To Help With Costs
For Your Family
Discover More About Child Care Tax Credits, Programs And Discounts To Help With Costs
Preschool & Child Care Center Serving Kansas City, KS
The Support You Need For The Best Start
How will your child receive uncompromising quality care so you can enjoy the peace of mind you need? Several options are available to help you offset the costs, and we’ve made it easy to learn about them.
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A tax credit is even more valuable to families than a tax deduction! It’s a dollar-for-dollar reduction in the taxes you owe. Some credits are refundable—reducing taxes otherwise owed to zero and paying a refund.
NEW federal tax benefits:
The American Rescue Plan Act of 2021 enhanced the benefits of families with children and child care specifically. The details of the new benefits can be hard to understand, so we’re here to break it down.
Under current federal law, eligible families can claim 2021 child care tax credits up to the following maximum amounts:
- $8,000 from the federal Child and Dependent Care Tax Credit (up to $4,000 for each of your first two children). For 2021, this is a refundable credit.
- $6,728 from the federal Earned Income Tax Credit.
- $3,600 per child under six (as of December 31, 2021) and $3,000 for children 17 or younger (as of December 31, 2021) from the federal Child Tax Credit (these amounts were permanently enacted into the law).
There are rules for these federal tax credits, so please speak to your tax advisor about how they apply to your family. In the meantime, this child care tax credits calculator is a quick tool for a broad estimate.
State tax benefits:
Each state offers different tax credits to offset the cost of child care. See what benefits might be available to you in Kansas.
If your family needs help with tuition, there are state and local agencies to provide tuition subsidies. This map is a great starting point for finding the financial assistance resources available.
More and more employers add child care benefits to their employee compensation packages because it’s hard to do your job without reliable child care!
Talk with your employer or your HR department about whether they offer child care benefits and how to use them.
If you are enrolled or teaching at Kansas City Kansas Community College, you could be eligible for savings on child care. Contact us for more information.
If you don’t see answers to your questions about making child care costs easier, call us or drop in for a chat.