Help Is Available To Offset The Cost Of Tuition
Discover More About Child Care Tax Credits, Programs And Discounts To Help With Costs
Preschool & Daycare Serving Newport News and Virginia Beach, VA
Tuition Support That Fits Your Needs
Child care is one of your top priorities, and you want to be sure your child is getting the very best early education. There are several options available to you to help 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 Virginia.
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.