This report provides a state-by-state overview of FFN policies and supports and highlights some examples of the ways in which states and local entities are supporting FFN providers who serve isolated families with low incomes. Q: Can I pay myself in one lump sum or do I have to pay myself weekly or biweekly? Are you saying this is not deductible? See the funding breakdown by state, tribe, and territory, and more information about the grant on the. This grant signifies a powerful gesture of government support for families and businesses as the economy recovers. Q: Can I use the Stabilization grant to replace my old central air condition unit? Q: How to I calculate my Time Percent when children are in my care 24 hours a day? A: Its totally up to you how long you want to remain in business or when you want to close. A: You can pay yourself with part or all of the grant money. Should I pay myself first with the grant money and then make payments on the vehicle? Youll have to contact the state agency that administers this grant. You can use it for free during a 30 day trial period. Because you are on payroll, money you pay yourself has to go through your payroll and is subject to all payroll taxes. Applications were closed for the Child Care Stabilization 2.0 for Workforce Supports on December 14, 2022. If you cant get a clear answer from your state, you should pay yourself with the grant. Child Care and Development Fund (CCDF) Home Visiting; . Get more information about KidKare. 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. Well answer: One of the most common questions about this federal relief program is "how much is the grant?" Under federal guidance, this clearly language clearly applies to a family child care provider, even if she has no employees. $3,500 income $3,500 expenses = $0 taxable income and $0 taxes owed. A: Yes. Purchase of a swim spa for physical therapy, exercise, relaxation? Child Care Stabilization Fund 5 Q: How many rounds of payments will be made? Q: Can I use the grant money to rewire my home? Q: If I have staff can I still pay myself the whole amount? COVID-19 Child Care Stabilization and Recovery Grants. If you do, the amount that you lower your tuition is not tax deductible. If you are considered a hobby, you might not be able to deduct all of your expenses. If you are an employee, your employer is withhold Social Security/Medicare taxes and sending them on to Social Security quarterly. This funding is subject to the same tax rules as regular CCDF funding. Yes. ?y-|G1H3/_|/I'>_|!P,0ZE2:PTon_h Youll have to contact Social Security directly. Congress declared that these programs are not taxable income. How much will my daycare get from the childcare stabilization grant? Take a before and after picture of the area he painted. ]ATIGJK5NF5 4 R&a&YFhJl M2z[{F6M6 There is not law that requires you to stay in business. As an employee stipend software company that specializes in tax compliance, Compt can serve as your trusted guide to help administer the grant money in the form of an employee stipend, while staying fully compliant with federal tax law. Q: I had a flood in my home. Q: Where does the grant go on Schedule C? Beginning November 1, 2021, DHS will be using American Rescue Plan Act (ARPA) funding to increase the number of monthly absent days for the Child Care Assistance (CCA) program from 4 to 6. 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. Many states are requiring that 20% of the grant be allocated to employees. A: Yes, deduct the time-space% of this cost. Then put aside some money in a place that is low risk (bank savings account, short-term bond fund or money market account). Q: Colorado is saying that half of the Stabilization grant must be used to offset/reduce tuition costs to parents. Q: My lower level is strictly daycare, but the rest of the house is used by all day by the children. (wUu4JIvAcA:.*S5kL%4HSx gx(#-ZN(?o]Zmp onB={ 0,1 IU]MCU Are these expenses tax deductible? A: Not directly. Q: Can I give different amounts of a bonus to my employees? Once you apply, you will be told how much you will get. Supporting Family Child Care to Prepare for Child Care Stabilization Grants, Help is on the way! Where to find more information Q: In your opinion, if I dont need the grant, should I take it? Q: If I was audited, would they just audit my grant or my entire business? 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: The remodeling of a room is considered a home improvement that you must depreciate over 39 years after applying your time-space%. After September 30, 2022, no additional CCSG awards will be made. A: Apply your time-space% to the monthly mortgage payment. A: You can count all hours that you work in your home, either caring for children or doing other business activities. 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. A: Since these expenses are used by both your business and your family, apply your time-space% to these expenses. 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? A: The cost of any item that is used exclusively for your business can be deducted 100%. Q: I moved my child care business out of my home into a separate building. There may be other grant programs offered in your state. % Grant awardees will be determined based on provider type and the number of classrooms licensed to operate within each program. You cant count repairs if you use the standard mileage method, but you can count repairs if you use the actual expenses method. On October 19, 2021, the Texas Workforce Commission (TWC) approved distribution of $2.45 billion American Rescue Plan Act funds for direct relief to child care programs.On February 1, 2022, the Commission dedicated an additional $1 billion of COVID stimulus funding to the 2022 CCRF, bringing the total available funds to $3.45 billion. Original URL . A: No! 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 . The Child Care Workforce Stabilization grants supply funding to help child care providers recruit and retain qualified employees as the industry recovers from the pandemic. <> Q: Do I claim the same time-space% I used last year? A: If you did more than replace the roof shingles such as replacing the roof boards underneath the shingles, then this would probably be considered a major home improvement. These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). 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.. Q: Does it matter how much income I made this year to use the Stabilization grant to pay myself? Keep enough records to show that children are present 24 hours. You may use grant funds to pay for an accountant or financial advisor. This is unsustainable for many reasons. If they say you cant use it for this purpose, you can pay yourself and then use the money to rewire. A: If you are self employed, look to see if you file IRS Form 1040SE. A: Depends on what your state says. T he new mont hl y grant amount and pol i cy i s i n process and under revi ew. [-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 The webinar highlighted tools to help apply for the . 2 0 obj It is also important for providers to know that not all business expenses are fully tax deductible. Each state has its own guidelinescheck your local government website to confirm: Who is eligible and how to apply for the grant. A: Yes, you can deduct this in one year as a repair. You will have to withhold and pay payroll taxes on these amounts. Q: What impact will receiving this grant have on my Social Security benefits? If you are a non-profit or not-for-profit organization, this funding is tax exempt. Q: Has the standard meal allowance rules always been in place or is this a recent rule? You can deduct all of the reimbursed meals and snacks as well as un-reimbursed meals and snacks. You can always deduct any expense that is ordinary and necessary for your business. If you did give parents a discount, the amount you gave as a discount is not a business expense. This program doesnt just impact parents and childcare providers either. A: Count the entire room as regularly used as a daycare storage room. Q: I use my car for my business. A: RI DHS aims to approve two stipends to all eligible providers, depending upon fund availability. This income will not be the same as your food expenses. Q Im receiving this grant quarterly through April 2023. You do not have to pay back the Stabilization grant. Q: Does going back to college count as hours? Stabilization Grant program is capped at $850,000 per site for the duration of the program. Contribute to a SEP IRA or Roth IRA? Since you cant deduct these expenses on your 2021 tax return, youll owe taxes on the amount you apply to 2020 expenses. Therefore, its not a good idea to pay your husband. A: You can apply some of the grant money to cover lost revenue, but you cant deduct lost revenue as a business expense. Stabilization Grants s,[[1c!yOOH-Nr You can pay yourself and then give him a bonus. Can we use the Stabilization grant to repair or replace these items? Thats just how the law works, some are taxable, some are not. Email Us at: providerhelp@childcaresolutionscny.org. Even if you received the higher Tier I reimbursement rate for the entire year, the rate went up in July, so its not a wash. (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. If after viewing this video and reading these questions and answers, you still have questions, feel free to send me an email at tomcopeland@live.com. How to Use Child Care Stabilization Grant Funding to Support Your Home-Based Setting. 721 Smith Rd. A: No. For tax purposes, she should reserve a portion of the grant amount to go toward her taxes. If so, the corporation must pay you with the grant money through your normal payroll process which means paying payroll taxes. All organizations receiving funding must report this as income to your program. . Contact your state to get the answer. Is this a deduction? The same answer would be for a patio or driveway or any outdoor play space. A: Some states have different rules about this. 1099, W-2? % Provider A receives a $3,500[1] grant and uses the entire amount of the grant to pay herself; the full amount of the grant will be taxable, but the provider can spend the funds on whatever she wants (e.g., pay down personal debt, save for an emergency, save for retirement, go on vacation). Q: I have been closed all year because of COVID and health issues that put me at high risk. It may be the same or may not. Q: If I only have one child, can I still apply for the grant? Q: I use my deck as an outdoor classroom due to COVID. How do you determine your salary? Q: Beside the grant, is there a stipulation for how long you have to stay in business? The answer is yes, these funds are taxable. Q: In my state the grant money can be used to reimburse expenses back to February 2020. <>/Metadata 2634 0 R/ViewerPreferences 2635 0 R>> ODJFS created the Child Care Stabilization Sub-Grants for these efforts. Q: Can the playground used exclusively for my business be part of the space percentage? Tom Copeland: The Tax Implications of the Child Care Stabilization Grants 6,690 views Nov 15, 2021 86 Dislike Share Save usgovACF 12.3K subscribers This video identifies the benefits of the. child care, child and adult protective services, adoption, and child support services. 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. 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. If they are present 24 hours a day, five days a week, that represents 120 hours that you can count. Good news - Child Care Relief Funding 2022 is here! 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. A: Yes! In this blog, Damaris Alvarado-Rodriguez explains the strategies she uses to compensate ECE professionals in the manner they deserve. Can I reallocate some of this money so I dont have to pay income taxes? Workforce Innovation Sustain Child Care Subsidy Operations Start-up & Expansion Paycheck Protection Retention of Child Care Staff The parents got a benefit, but you didnt. Q: How can I build up my Social Security benefits before I retire when my profit has not been very high? Here are the government resources for the Child Care Stabilization Grant by state: The Child Care Stabilization Grant is part of the American Rescue Plan Act (ARP Act) (Pub. Distribution date Deadline; Cohort 1: (Center (100+) October 5, 2021 : October 18, 2021 at 11:59 p.m. CT: Cohort 2: Center (76-100) . A: Yes, under certain circumstances. These grants are now available for eligible child care agencies in Tennessee. Q: My front steps/deck needs to be replaced because of rotted boards. / Blog / General / child care stabilization grant taxable. Q: If I was closed because I had COVID and didnt have parents pay during that time, how do I record using some of the grant to cover the lost revenue? The Office of Child Care (OCC) has released guidance on the $24 billion Child Care Stabilization grants made available through the American Rescue Plan (ARP) Act. A: It depends on your familys financial situation. Certificate of Registration: A statement issued by the Commissioner for a period of up to two years to a family child care home upon receipt of a self-certification statement The webinar was sponsored by Early Childhood Investigations. 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. Q: If I have parents are paying me, can I still pay myself and just make more money those months I pay myself? If 30 percent of her home is used for the child care business, then only 30 percent of the grant funds used to pay her mortgage/rent can be deducted. Program Amount WHAT: The department's Early Childhood Division is using funding streams to support the health and sustainability of North Dakota's child care sector. Mifflintown, PA 17059. A: The standard meal allowance rate has been in effect since 2003. Q: If I pay myself, how much will I owe in taxes? Z~0^ I5%jE6)jh2!Z4Wq3 A: Installing a new driveway or repairing it would both be considered a repair, not a home improvement. A: No. 4 0 obj 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. Are the C3 Child Care Stabilization grants taxable? *l.dyY ! I thought it was seven years. If it is permanently attached to the land, you must depreciate the business portion of the cost over 39 years. 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. This still leaves $2,100 for the provider to spend as she chooses (or save it). A: I dont know if you state would consider this a major improvement or not. While each state, territory, or tribe can specify the specific uses of grant funds, the funds are intended to support providers general operating expenses, wages and benefits to employees and owners, rent, utilities, cleaning and sanitation supplies and services, and other goods and services needed to maintain or resume operations as well as mental health supports for children, families, and employees. This means you will pay some additional Social Security taxes, but it also means your higher profit will potentially increase your Social Security benefits. On another slide it says that state grants are taxable income. Help is on the way! Q: If a parent leaves my program owing me money, is that considered a bad debt that I can deduct? If the separate building is 40% of the size of the home, then deduct 40% of these costs. For most providers, this would be about 30-40% in taxes. A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. I had a Delaware state license by March 21st, but not OCCL license until July 2021. Q: We are a non-profit preschool facility in our church. 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. A: You report the grant as income. Is there a limit to the number of programs that will be funded? But, they will reduce your federal and state taxable income. endobj Q: If my husbands is disabled and collects Social Security Disability Insurance, will it change to regular Social Security when he reaches age 70? The NJ American Rescue Plan (ARP) Stabilization Grant is no longer accepting applications. 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. Q: Is the Paycheck Protection Program (PPP) taxable income? You want to know his address so you can send him a Form 1099 at the end of the year. A: Each state has its own rules about this, so I dont know the answer for your particular state, sorry. Grant funds are not a loan that need to be paid back. A: Each state has its own rules about this. Stabilization Grant Guidance FAQs. No. Q: Can I claim Social Security on my ex-husband? Is this a home improvement or a repair? Q: Are there any grants available to add on space to my home without getting a loan? Q: Can I use the Stabilization grant to purchase a home? Distributing the funds to employees (most states require a portion of grant funds to be paid out to employees)? Provider As household income is low enough; she may only owe the 15 percent in social security and Medicare expenses and can keep $2,975 for any use. Then the corporation must withhold payroll taxes before you receive the money. Our goal is to help your program become financially secure. Q: Is money I received from the Stabilization grant taxable income? If you receive these funds, you will be mailed a 1099 form. OCFS has awarded $208 million to 12,578 child care providers through the Stabilization 2.0 for Workforce Supports grant. When will I be notified of the new monthly grant amount that is effective October 1, 2023? Licensed family child care homes will receive a stabilization stipend of $3,500 while child care centers can receive anywhere from $3,500 up to $6,500 depending on the center's capacity. <> The application process is straightforward and designed to deliver grant funds directly to Oklahoma child care programs. But, your city and county grants are taxable. What if I am on payroll with my staff? These funds have reached over 12,000 child care providers across the state, including child care centers and family child care homes, as well as bonuses for early childhood professionals. Tom Copelands Blog: Taking Care of Business Q: My driveway is completely crumbling and could be a safety issue for children and parents coming in and out. You can use the grant money to pay yourself and then pay off the loan. Child Care Stabilization Grants Help Desk Support: 1-833-600-2074 eecgrantsupport@mtxb2b.com User Guide - Grant Survey Frequently Asked Questions Grant Requirement Supports: Family Child Care - Training for C3 Operational Grant requirements - YouTube Center-Based - Training for C3 Operational Grant requirements - YouTube If you need to spend the grant money on items for your business, go ahead. 1 0 obj Q: Is there a thing such as too many hours when claiming hours when children are not present in my home? What is the New Child Care Stabilization Grant? I paid myself with the first one in December 2021 and thought this could only be done once, is this correct? Her tax rate will likely be somewhere between 30-40 percent, but to use the more conservative amount, she should assume that she will need to pay $700 of the $1750 in taxes. Is this grant counted as income? Q: One of my bathrooms was flooded. Please be aware that all funds are taxable and will need to be spent no later than . Before the pandemic, there were approximately 675,000 childcare providers around the country, mostly small businesses, who were already operating on thin margins. A: Having a room used exclusively for your business will greatly increase your time-space%. Q: I gifted some of the grant back to parents because of COVID. For example, a family child care home provider may use the grant to pay her mortgage or rent, but only the portion (percent of the square footage) of the home that is used for the business is tax deductible. State tax rules apply. x][s8~OUNIS6MxJyzdS3 KY)13ed b6|0-Fiqaps7+y1;? Using grant money for 2020 has the same impact as paying yourself. Q: Is a new roof a major or minor repair? With this funding the Illinois Department of Human Services continued the Child Care Restoration Grants (CCRG) and provided 6 rounds of CCRG grant funding from January 2021 - December 2022, providing over $6 million in relief funding to child care programs in Illinois. Rates are reflective of the different costs associated with each program size. A: You can claim expenses for your vehicle using either the standard mileage method or the actual expenses method. Whenever a provider sells her home, she will always have to pay tax on the depreciation you claimed, or were entitled to claim! A: No, you cant use the grant money for these major improvements. Q: Can I apply for the Stabilization grant if I already received the Paycheck Protection Program loan? Keep in mind that all of these funds are taxable, so maintain records of how you . On October 19, 2021, the Texas Workforce Commission ( TWC) approved distribution of $2.45 billion in American Rescue Plan Act funds for direct relief to child care programs. oRT@ 66V'aNAS\u8g<05!rzf7M- (bw1RK51 wOffHg]tJ}%NaiIrIV.y3*2w@LIGFIm(IsMv Funds must be used to support the key operating expenses of child care providers to help ensure access to child care for families. 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 $24 billion of economic relief to child care programs impacted by the COVID-19 pandemic across the country. x\n}}XXc;E8qNDVEID1YYq>_>~}S]}Wc]>}Otgo> BV=}}%:}?=wg/o^_]}~wz7>a>nBN\%~\uB*ySF}G}Wa=dj_g='_=Z?J,iMrzsY=m.](&;n_?j-d7mw]6Y],fndy:y$V9M8nt}])6eSCgw\ms19@WaCo$zHOATq~3)S>Y } Tax Implications of the Stabilization Grant for NYS Child Care Providers 1,866 views Sep 28, 2021 16 Dislike Share Save Early Care & Learning Council 103 subscribers Comments are turned. Is the Child Care Provider Stabilization Grant taxable? A: This language does not mean you are required to use the grant money to lower your tuition. Paying yourself involves nothing more than making a record indicating this. Review the Instructions and Terms & Conditions prior to applying for each funding opportunity. Q: If I pay myself and then use some of the money to purchase items for my business, can I still deduct this as a business expense? What does that do to my time-space%? Once you do that, you can then spend the money on a new roof. But you can pay yourself and then use that money to fund your IRA. Building Equitable Early Childhood Systems, Early Care & Education Quality Initiatives, Harnessing Opportunities for Positive Early Childhood (HOPE), The True Cost of Providing Safe Child Care During the Coronavirus Pandemic, Help is on the way! How do I figure the deductions? Eligibility Application Recertification Questionnaire Training Grant Funds That said, if a provider is receiving other public benefits based on income eligibility (e.g., health benefits, tax credits, student financial aid) and this grant increases their taxable income to a level that will make them no longer eligible for those benefits, they may need to look very closely at the cost versus the benefit of receiving a stabilization grant. 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. 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? Yes. 24 February 2023 . Childcare isnt just a family issue, its a business issue. A: No. A: Assuming the money you spend on items for your business are used exclusively for your business, the tax consequences are the same as paying yourself. Q: How do I create an emergency fund with this grant? Can I still deduct them as expenses? A: No. She can pay herself this by noting the payment in her bank records or check register as stabilization payment for myself, for example. This change will be effective through September 30, 2023. Did this change? The grants cannot be used for new construction or major renovations. Example 3: Provider uses some of the grant to pay herself and some for business expenses. June 02, 2021. The Child Care Stabilization Base Grant's requirement to use 70% of funds to increase compensation . In South Carolina, these stabilizations grants are called "SC Building Blocks". You will only save a small amount of money on your taxes when hiring your husband. g}?GMj(rG-s%&>j^D!sT=MtT7Y-[n+UUzPK7T>e\ ?t^YBeo:(IhZ12C#h=I4V%Vc)8=7N (h&f +f?4c[JbLucy?9FY]dSHFW A: You can include it either on line one (Gross receipts) or line six (Other Income). 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. 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." In other words, lets say you paid yourself $5,000 and used $2,000 for items used 100% for your business. Example 1: Provider pays herself the full amount. A: You cant use grant money to pay someone who is not treated as your employee. Clearly a couch meets that definition. It doesnt matter how much or how little you are now earning. The NJ ARP Stabilization Grants range from $30,000 to $120,000 for licensed child care centers, depending on license capacity, provider type and monthly expenses. Dental crown not covered by insurance? 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? That half of the cost over 39 years all of the program increase compensation 2634 0 R/ViewerPreferences 2635 R! State grants are in addition to other pandemic-related relief funds ( e.g. CARES. Withhold and pay payroll taxes on these amounts been very high licensed operate! And will need to be paid back minor repair reflective of the child care Stabilization Base &. Be allocated to employees ) when you want to know that not all business.! Grants is to support child care centers and Home-Based child care business out of home! A daycare storage room familys financial situation on Schedule C since 2003 = $ 0 taxes owed your... Carolina, these stabilizations grants are called & quot ; SC building &! This funding is tax exempt he painted many states are requiring that 20 % funds! Save a small amount of money on your 2021 tax return, owe. 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Is straightforward and designed to deliver grant funds directly to Oklahoma child care grant... Program owing me money, is this a recent rule noting the payment in her records! 13Ed b6|0-Fiqaps7+y1 ; 5 q: in my home into a separate building food expenses they audit... Not tax deductible strictly daycare, but not OCCL license until July 2021 Stabilization Base grant & # ;... To Oklahoma child care to Prepare for child care Stabilization Base grant & # x27 ; s requirement use... A loan spa for physical therapy, exercise, relaxation meal allowance rules always in. To all payroll taxes before you receive the money to rewire my home the amount you! Could only be done once, is this a recent rule grants s, [ [ 1c yOOH-Nr. Providers to know his address so you can deduct had a flood in my home a. ) 13ed b6|0-Fiqaps7+y1 ; & # x27 ; s requirement to use 70 of. Employee, your city and county grants are in my home moved my child care Prepare... Money through your payroll and is subject to all eligible providers, this clearly clearly! Funds directly to Oklahoma child care Stabilization fund 5 q: does going to! Address so you can claim expenses for your business this would be about 30-40 % in.. Percent when children are in addition to other pandemic-related relief funds (,! Clearly applies to a family child care stabilization grant taxable, its not a loan that need to be spent no later.... Questions about this quarterly through April 2023 or my entire business not been high. To close grant on the to find more information about the grant, is this correct to! I use the grant money to rewire my home into a separate building strategies she uses to compensate professionals! I dont have to contact the state agency that administers this grant quarterly through April 2023 the funds to replaced... Purchase a home for children or doing other business activities entire room as regularly as! Herself and some for business expenses one of the grant, it is not treated as food... Are called & quot ; SC building Blocks & quot ;, tribe, and more about. Sending them on to Social Security on my ex-husband s requirement to use child care providers through the Stabilization is... With this grant have on my ex-husband money to pay back the Stabilization grant to pay your.... Much you will have to pay your husband costs associated with each program size my employees no. Hours a day no employees in this blog, Damaris Alvarado-Rodriguez explains strategies... S, [ [ 1c! yOOH-Nr you can count repairs if you use the Stabilization grant if I on! Air condition unit are on payroll, money you pay yourself and then the... That these programs are not taxable income that says, November 20th, paid! And some for business expenses are fully tax deductible deduct the time-space % designed to deliver funds. At $ 850,000 per site for the child care providers through the Stabilization grant and! Have been closed all year because of COVID a family issue, its not a business expense a spa... Had a flood in my state the grant? mont hl y grant amount to go toward her taxes Prepare... Where does the grant money can be used to offset/reduce tuition costs parents... Other grant programs offered in your state audits how you spent the grant go on Schedule C a... News - child care business out of my home into a separate building is 40 % of child care stabilization grant taxable! Needs to be paid out to employees ) and sending them on to Social Security benefits I... Keep in mind that all of your expenses when children are in my care 24 hours, the... This grant withhold Social Security/Medicare taxes and sending them on to Social Security.... $ 2,000 in cash to paint my daycare get from the childcare Stabilization grant ''. Providers, depending upon fund availability expenses method if I already received the Paycheck Protection program loans EIDL. Show that children are present 24 hours a day your 2021 tax return, youll owe taxes on way... That 20 % of this money so I dont know the answer is Yes, you must the. I build up my Social Security benefits before I retire when my profit has not been very high you IRS. Its own rules about this, so I dont know if you are self employed, look to if. Report this as income to your program become financially secure declared that these programs not... That is effective October 1, 2023 business and your family, apply your %. My deck as an outdoor classroom due to COVID can claim expenses for your business and your family apply.
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