Valuable Support For Hardworking Families
Discover More About Child Care Tax Credits, Programs And Discounts To Help With Costs
Preschool & Childcare Center Serving Crested Butte, CO
Financial Options For Offsetting Tuition Costs
Your child’s care and early education are some of your biggest priorities, and you want to be sure your child is getting the best of both. There are several options available to help you ease the costs of tuition, and we’ve made it easy to learn about them.
Take A Look At Your Options Now:
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 Colorado.
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.
We use HoppingIn to make scheduling your child’s care easy and worry-free. Report your child’s absence through the app, and you may get a tuition credit when that spot is re-booked. Ask us for more details; some restrictions may apply.
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.
As part of our team, you may be eligible for other discounts or tuition credits. Talk with your HR manager about what’s currently available to you.