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. Afterwards it costs $99.00 a year. Access to safe and reliable child care is the backbone of our economy and essential for employees to get back to work. 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. The CCDF regulation at 45 CFR 98.20(a)(3)(ii) clarifies that the protective services category may include specific populations of vulnerable children as identified by the Lead Agency. The Child Care Stabilization Grant is considered income and is taxable. Q: Can I get the grant even if I dont have any helpers? In each monthly submission, you will complete two sections: NOTICE: All CCSG providers must now use the NEW monthly reportlaunched beginning with the grant award for September 2022. The definition of what counts as income for the EITC is determined at the federal level and includes all income reported to the IRS as part of a tax filers Adjusted Gross Income (AGI). This funding is subject to the same tax rules as regular CCDF funding. Because the ARP Act Supplemental CCDF Discretionary funds allocated at section 2201 can be used for the same purposes as regular CCDF funds, states and territories making major policy or programmatic changes effective before October 1, 2021, were instructed to submit amendments to their current FY 2019-2021 CCDF Plans. As a reminder, CRRSA Act funds may be used to waive copays for all eligible families without a CCDF waiver. 116-127) added a temporary FMAP increase of 6.2 percentage points beginning January 1, 2020, and continuing through the Coronavirus Disease 2019 (COVID-19) public health emergency period. These laws provided a combined $13.5 billion in supplemental CCDF funds to help State, Territory, and Tribal Lead Agencies address COVID-19 impacts, as well as some additional flexibilities for the use of those funds. Examples of changes that would require a waiver include exempting providers from some or all health and safety standards, health and safety training requirements, background check components; suspending annual inspections of providers; changing income eligibility to be higher than 85% of State Median Income; or changing the subsidy eligibility period to be less than 12 months. A: Each state has its own rules about this. Applications submitted after March 30 will generally not be considered. Some examples include: What are the requirements and restrictions for how the grant funds can be used for payroll? Eligibility Application Recertification Questionnaire Training Grant Funds The ARP Act child care stabilization funds are specifically designed to promote the stability of the child care sector. 18. Q: If I pay my assistant with the grant, do I still have to pay taxes on it? If a Lead Agency adopts this interpretation, it would be allowable (but not required) for a Lead Agency to use CCDF for child care services when children are completing remote, virtual, or online schoolwork or instruction while in child care. . Child Care Stabilization Grant Tax Implications (michigan.gov) 19. 2023 BUILD Initiative. The date of the application approval will determine the date of the first payment based on the payment schedule. Tribal lead agencies may determine which provider types to include in their stabilization subgrant programs, as long as those providers are eligible and qualified, as defined in the ARP Act, which may include limiting subgrants to tribally operated centers. Do programs need to spend all the grant funding each month? IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday, August 1, 2022 in LEAD. Lead agencies should notify a provider as soon as the decision to reverse the application is made and provide information on why it was reversed and an opportunity to appeal the decision. Lead Agencies may temporarily lower a familys co-payment while the family is experiencing temporary or non-temporary job loss. Because efforts to increase access to licensing are considered a supply building activity, funds from this set-aside could be used to create a child care licensing department for the tribe. You should amend your 2020 taxes and report it as income and pay taxes on the amended return. Step 1: Submit an OK Child Care Application Step 2: OKDHS reviews the application Step 3: OKDHS approves the application Step 4: Child care program is notified of approval via email Step 5: Payment will be delivered after the application period ends and your application has been approved. The tutoring or academic support services do not duplicate or supplant the academic program of any public or private school, pursuant to 42 USC 9858k(b)(3) and 45 CFR 98.56(c)(3), although the services may supplement or enrich the childs education. Providers who served children receiving subsidies from the following programs in March 2021 will be eligible for a $600 per-child stipend: CalWORKs Stages One, Two (C2AP) and Three (C3AP) Alternative Payment Programs (CAPP) including Migrant Alternative Payment Programs (CMAP) General Child Care and Development Programs (CCTR) other COVID-related expenses (including past expenses). These funds give them a lifeline at the perfect time. These essential functions include (i) continuing payments to child care providers serving children receiving subsidies; (ii) provisions for extending eligibility re-determination for families; (iii) communication with the licensing agency to ensure that licensed programs receiving CCDF funds are safe and operational; (iv) assisting new enrollees or preparing for an influx of families who may need assistance; (v) implementation of a waiting list if the Lead Agency does not have one, as appropriate; and (vi) tracking families receiving subsidies impacted by the disaster. Retaining documentation to support each expenditure (i.e. Lead agencies may use part of their set-aside and other COVID-19 funds (i.e., CARES, CRRSAVisit disclaimer page, and ARP Act supplemental funds) to help providers open or reopen. U.S. Department of Health & Human Services, Administration for Native Americans (ANA), Administration on Children, Youth, and Families (ACYF), Office of Child Support Enforcement (OCSE), Office of Human Services Emergency Preparedness and Response (OHSEPR), Office of Legislative Affairs and Budget (OLAB), Office of Planning, Research & Evaluation (OPRE), Public Assistance Reporting Information System (PARIS), section 2202(d)(B)(i) and (ii) of the ARP Act, ARP Act supplemental CCDF Discretionary funds, Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, FY 2022-2024 Child Care and Development Fund (CCDF) Plan, FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation, or cost of producing self-employment income (once spent, US Department of Labors webpage on UC benefits related to the COVID-19 outbreak, https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation, Rent, utilities, facility maintenance or improvements, or insurance, Personal protective equipment, cleaning and sanitization, or training and professional development related to health and safety, Purchases of or updates to equipment or supplies to respond to the COVID-19 public health emergency, Goods and services necessary to maintain or resume child care services, Mental health support for children and employees, Administering child care stabilization funds, Carrying out activities to increase the supply of child care, Providing technical assistance and support for stabilization applications, Publicizing the availability of ARP Act stabilization funding, Providing technical assistance to providers receiving ARP Act stabilization funds. OCC encourages tribal lead agencies to include center-based and family child care programs outside of their CCDF program, as well as programs that serve school-age children. The Centers for Disease Control and Prevention (CDC) guidance suggests staggering drop-off and pick-up times and/or having a child care provider meet children outside of the facility when they arrive. However, because other ARP funding explicitly for Head Start programs is available and Head Start programs have continued to receive federal grants during the pandemic, lead agencies should only include Head Start and Early Head Start programs in the stabilization subgrants under limited circumstances. Q: If someone takes the grant and decides they no longer want to be in daycare, will they have to reimburse the money received? However, child care providers are not required to provide relief from copayments and tuition for families in their care during the ARP Act stabilization subgrant period. 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 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. (42 USC 9858c(c)(2)(N)(iv); see also 45 CFR 98.21(b)) This safeguards childrens continuity of care as parents move towards economic self-sufficiency. Tribal lead agencies should develop a process to verify the assurances while collecting the information to report on use of funds and data elements about the subgrants and subgrant recipients. To show payments from the business to the person, documentation may include: Records of self-payments of grant funds from the business should be consistent with personal records for tax purposes. OCC notes that the availability of some program funds, such as PPP, have been inconsistent and the extent to which child care providers can access them may be limited. Child care services with a tutoring or academic support component that are funded through CCDF subsidies must be paid in accordance with the Lead Agencys CCDF payment rates. Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. Enter your LEAD username, enter your LEAD password, and click Login. Is there a deadline for spending this funding? Can I give him a $500 bonus? 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. Q: If I transferred money to pay myself earlier but sometimes forgot to make a note, can I go back and fix it? There are two components of North Carolina's Child Care Stabilization Grants. View COVID-19 resources for CCDF Lead Agencies, providers, and families. Regarding Federal taxation, please contact the Internal Revenue Service for guidance. The goal of the Child Care Stabilization Grant is to provide financial relief to child care providers to help cover unexpected business costs associated with the COVID-19 pandemic, and to help stabilize their operations so they may continue to provide care. Supporting Family Child Care to Prepare for Child Care Stabilization Grants, Help is on the way! January 10, 2023. Lead Agencies also have flexibility in treatment of regular UC benefits. What is the difference between a major renovation and minor building updates or maintenance? Some child care businesses may qualify for tax credits to support paid sick leave while they receive a vaccine and recovery from any side effects. Yes. Q: Does the federal guidance for this grant require providers to gift any of it to parents? Example 2: Provider uses full amount for business expenses Minnesota's Child Care Stabilization Grant Program endeavors to provide child care providers with financial support to maintain operations and increase staff compensation. Providers closed due to an inactive status pending the outcome of an investigation may not recertify until the investigation has been closed and corrective action has been approved by EEC. Child care providers that receive a grant have a reporting obligation on Form 1099-G if the amount is above $600. Q: Can I use this grant to pay myself? For Group and School Age/Center-Based (GSA)programs, the formula will use a centers total licensed capacity to calculate the base amount of the monthly payment. If the program is closed due to schedule during the summer, it would not be eligible to apply for a subgrant during that time. For example, when each payment is received: What is the Expenditure Tracker tool and how can it be used? Therefore, a lead agency could define a lack of qualified staff or demand as an accepted reason related to the COVID-19 public health emergency for why a child care provider may be temporarily closed. The CRRSA Act funds are silent to the obligation and liquidation periods. For most Medicaid beneficiaries, the definition of what counts as income for Medicaid is determined at the federal level and includes all income reported to the IRS as part of a tax filers Adjusted Gross Income (AGI), plus some non-taxable income sources. CCDF funds provide financial assistance to low-income families to access child care so they can work or attend a job training or educational program, and provide resources for quality improvement of child care. Broaden the Lead Agencys definition of protective services to permit emergency eligibility as a temporary, short-term measure. How do I treat this on my taxes? A conservative estimate would be to assume 15 percent for social security/Medicare plus 15 percent federal income tax and about 10 percent for state and local income tax, for a total of 40 percent or $1,400. Payments to child care workers that are sourced from ARP Act stabilization funding are other types of income that can also be excluded from the eligibility calculation. We will use this information to improve this page. The Ohio Department of Job and Family Services (ODJFS), Office of Family Assistance, was approved through the State of Ohio Controlling Board and Legislative Appropriation to spend these federal stabilization relief funds. Alternatively, a Lead Agency may seek a waiver due to extraordinary circumstances that would allow double subsidy payments to two providers for the same child and period of service. 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