A GUIDE TO PAYING FOR CHILD CARE
There are a lot of factors to consider when planning your family budget. Paying for child care is one of the biggest expenses working families face. Along with food, rent, utilities, and other necessities that have to be paid every month; you have a weekly child care payment to handle. If you have children or plan on starting a family, you know how important child care is—not only for your child’s development but for the management of your finances.
There's no doubt that paying for child care is expensive, but there are ways to get help while still providing your children with a safe, nurturing, and developmentally stimulating experience. Here are 6 ways to seek help with the cost of child care:
Workforce Development Institute (WDI) Child Care Subsidy
WDI is one of the best options for help with paying for child care right now. Many families struggle with the high cost of quality child care even when they are working full-time or nearly full-time. WDI’s Child Care Subsidy Facilitated Enrollment Program helps eligible working families apply for financial assistance. WDI staff are available to answer questions and guide families through the application process.
To begin, complete a simple prescreening process
For more information, contact your local WDI office: Albany, Rensselaer, Saratoga, or Schenectady Counties | capitalchildcare@wdiny.org or 518.272.3530
Child and Dependent Care Tax Credit
If you paid someone to care for a child or a dependent so you could work, you may be able to reduce your tax by claiming the credit for child and dependent care expenses on your federal income tax return, according to the IRS. This credit is available to people who, in order to work or to look for work, have to pay for child care services for dependents under age 13. The credit is also available if you paid for care of a spouse or a dependent of any age who is physically or mentally incapable of self-care.
The credit is a percentage, based on your adjusted gross income, of the amount of work-related child and dependent care expenses you paid to a care provider. The credit can range from 20 to 35 percent of your qualifying expenses, depending upon your income.
For more information visit the IRS website: www.irs.gov.
Earned Income Tax Credit
The Federal and State Earned Income Tax Credits are refundable tax benefits for working people with low or moderate incomes. They have several important purposes: to reduce the tax burden on these workers, to supplement wages, and to make work more attractive than welfare
Workers who qualify for the EITC and file Federal and State tax returns can get back some or all of the income tax that was withheld during the year. They may also get extra cash back from the IRS and from New York State if their EITC is higher than the taxes they owe. For more information, visit the New York State Office of Temporary and Disability Assistance website, call the IRS toll free at 1-800-829-1040 or call New York State Taxpayer Information at 1-800-225-5829.
Department of Social Services Financial Aid
Working parents with incomes at or below these 2021 guidelines may qualify for assistance through their local Department of Social Services
| Family Size | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
|---|---|---|---|---|---|---|---|
| Albany County | $33,840 | $43,920 | $53,000 | $62,080 | $71,160 | $80,240 | $89,320 |
| Fulton County | $33,840 | $43,920 | $53,000 | $62,080 | $71,160 | $80,240 | $89,320 |
| Montgomery County | $33,840 | $43,920 | $53,000 | $62,080 | $71,160 | $80,240 | $89,320 |
| Rensselaer County | $27,872 | $35,136 | $42,400 | $49,664 | $56,928 | $64,192 | $71,456 |
| Saratoga County | $33,840 | $43,920 | $53,000 | $62,080 | $71,160 | $80,240 | $89,320 |
| Schenectady County | $33,840 | $43,920 | $53,000 | $62,080 | $71,160 | $80,240 | $89,320 |
To find out if you may be eligible for help in paying for child care, please contact your local Department of Social Services
Employer Programs
Additional help with child care costs may be available through your employer. Inquire in your human resources or finance office to find out if any of the following benefits may be available:
Dependent Care Spending Account
Money is set aside from an employee’s gross salary into a nontaxable spending account to pay for child care. Neither the employer nor the employee pays taxes on the amount of salary reduced for child care. The employee is thus able to pay for child care expenses with tax free dollars.
Flexible Spending Plans
Also called a “cafeteria plan”, these programs allow employers to offer a range of benefits. Employees choose from a menu of benefits and customize their benefits package. For example, some employee may have health insurance provided by a spouse’s employer and may choose a child care benefit instead.
Child Care Vouchers or Reimbursements
An employer may offer workers a child care allowance or subsidy that families can use toward a child care arrangement of their choice.
Additional Support
Child Care Program Fees
Additional assistance may be available to families in the form of
Sliding fee scale: fees for this scale are based on income standards set at the program.
Fees negotiable: program is willing to negotiate fees on an individual basis.
Scholarships: program offers its own scholarship program or will accept scholarship funds.
Multi-child discounts: program offers a fee reduction to parents with more than one child enrolled in care.
Parents are encouraged to inquire about these services at their current child care program, or call us for referrals to programs that offer these supports.
Other Opportunities for Financial Assistance
Additional health and human services programs are available such as food stamps, temporary assistance, HEAP, and WIC. Visit myBenefits.ny.gov to learn more about the many programs available, to prescreen for the programs to see what you may be eligible for and, to apply on-line for the Food Stamp Program.