A: Yes, deduct the time-space% of this cost. A: No. 32% of employers have seen some of their employees leave the workforce due to the effects of COVID-19. Afterwards it costs $99.00 a year. Yes. A: You cant use grant money to pay someone who is not treated as your employee. If so, how do I do this? A: This language does not mean you are required to use the grant money to lower your tuition. 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. 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 . As long as you keep records showing you worked these hours, claim all the hours. You can use it for free during a 30 day trial period. Can we use the Stabilization grant to repair or replace these items? Keep enough records to show that children are present 24 hours. If you received any other phase of the Idaho Child Care Grant, you may still be eligible for this fourth grant. Statement of Grant Opportunities Stabilization 1.0 . 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. No. 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. 5 Child Care Workforce Stabilization Grant Payout Schedule Qualifying Employment Period - Employees must be employed at least 30 days prior to the beginning date of the qualifying period through the end of this time period to be eligible for the quarterly bonus. JaJJ+7@h&P8=?xv:jA!tOUa@J]uym@%|4YX2 |[:&= 3q;n#}Ab!72d KNOgl0q8\l0'dP!_"g8X`G6"%Wi{nP"D\-;@Oi1)+fd- JE~_X\}[.qpaidP^^C5B-qOu K=(~S`!b]Rfy(-cp1PC:t)4zPSq &A##807[uCo3./kECuzS:zRsu[G q>+hL If the separate building is 40% of the size of the home, then deduct 40% of these costs. If you receive these funds, you will be mailed a 1099 form. A: RI DHS aims to approve two stipends to all eligible providers, depending upon fund availability. This is clearly the case if you were receiving the lower Tier II reimbursement rate before July. Q: If someone takes the grant and decides they no longer want to be in daycare, will they have to reimburse the money received? A: State applications will often use the word personnel when describing what the grant can be used for. 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." 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. Q: What criteria is my state using to approve the Stabilization grants? endobj A: No. This bill, based on President Biden's bold American Rescue Plan, provides $39 billion in desperately needed child care relief funding. Q: Can I use the Stabilization grant to replace my old central air condition unit? A: An employee can work fewer hours and that wont impact the grant. ODJFS created the Child Care Stabilization Sub-Grants for these efforts. Once you do that, you can then spend the money on a new roof. And while many childcare providers have opened back up, its been anything but easy. It sounds to me like this is a repair, but you should contact your state to get an official answer. Is this a home improvement or a repair? Minnesota child care providers were able to apply for these grants as part of their January 2022 Child Care Stabilization Base Grant application. Q: May I decrease wages for employees during the grant period? . Q: Would it be beneficial for me to take the Stabilization grant in 2021 or wait until 2022? If youre a daycare or childcare provider, read on to find all of the important program details. Are you saying this is not deductible? These funds give them a lifeline at the perfect time. Q: In my state the grant money can be used to reimburse expenses back to February 2020. These funds will help early childhood and childcare providers keep their doors open and continue to provide these essential services that are critical for a strong economic recovery and a more equitable future. Each state will determine how much a provider will receive based on a criteria they have developed. A: No. Q: Does the federal guidance for this grant require providers to gift any of it to parents? A: Its a repair because you didnt remodel the entire kitchen by replacing just the cabinets. If you cant get a clear answer from your state, you should pay yourself with the grant. Can painting the house be deducted as a repair? All $20 million of the One-Time Supplemental Stabilization Grant funds was awarded in January 2022. It had to be decontaminated and repaired. Stabilization Grant Guidance FAQs. <>/Metadata 2634 0 R/ViewerPreferences 2635 0 R>> A: You can use a vehicle for both business and personal purposes. This blog explores the tax implications of the American Rescue Plan Act (ARPA) Child Care Stabilization Grants for Home-Based Child Care Providers. Can I still deduct them as expenses? Q: Is the Economic Injury Disaster Loan (EIDL) a Stabilization grant or is this a loan that must be repaid? You can choose which method to use each year. Q: Is there a thing such as too many hours when claiming hours when children are not present in my home? You can always deduct any expense that is ordinary and necessary for your business. %PDF-1.7 Q: My business is an S Corporation. A: Social Security will look at your net income. The parents got a benefit, but you didnt. A: You can use the grant money for all of these items. Original URL . Q: I am on the Food Program and I spent $100 a month for food, but am only paid $68 from the Food Program. Q: Will getting this grant put me in a higher tax bracket? The corporation can deduct your wages and payroll taxes. Youll have to contact the state agency that administers this grant. Q: We are a non-profit preschool facility in our church. 2 0 obj endobj You can treat this as a repair and deduct your time-space% of this cost in one year. Investing in Iowa's Child Care (IICC) Funding Program A: If you do so it wont impact your 2020 taxes. This is not a loan. Z~0^ I5%jE6)jh2!Z4Wq3 ?y-|G1H3/_|/I'>_|!P,0ZE2:PTon_h A: Having a room used exclusively for your business will greatly increase your time-space%. Q: Is money I received from the Stabilization grant taxable income? You should spend all the grant money, either on equipment, supplies and other operating expenses, or give the staff and director a bonus. Q: In your opinion, if I dont need the grant, should I take it? No. In this blog, Damaris Alvarado-Rodriguez explains the strategies she uses to compensate ECE professionals in the manner they deserve. / Blog / General / child care stabilization grant taxable. Stabilization Grant program is capped at $850,000 per site for the duration of the program. A: Count the entire room as regularly used as a daycare storage room. Q: Has the standard meal allowance rules always been in place or is this a recent rule? A: Apply your time-space% to the monthly mortgage payment. Q: If I pay myself in order to make some changes that are not covered by the Stabilization grant, should I pay myself for the cost of the project, or is there some type of guidance I should use? Before the pandemic, there were approximately. Can I use the grant money for this or would have to pay myself first? Contact your state for the answer. This webinar, presented by child care business expert, Tom Copeland, will cover all the new tax changes affecting family child care providers for 2021. A: Installing a new driveway or repairing it would both be considered a repair, not a home improvement. Email Us at: providerhelp@childcaresolutionscny.org. You will have to withhold and pay payroll taxes on these amounts. If you do, the amount that you lower your tuition is not tax deductible. You want to claim this large deduction. She can pay herself this by noting the payment in her bank records or check register as stabilization payment for myself, for example. What if I am on payroll with my staff? Funds must be used to support the key operating expenses of child care providers to help ensure access to child care for families. A: Yes, deduct your time-space% of the cost in one year. Almost. I feel like its just more income I have to claim and pay taxes on. A: You can apply some of the grant money to cover lost revenue, but you cant deduct lost revenue as a business expense. Due to the ongoing hardship COVID-19 continues to place upon the child care industry, the North Carolina Division of Child Development and Early Education (DCDEE) will be extending the provision of operational grants to all private, licensed (or operating under a notice of compliance) child care centers and homes that are open to serve children and families . Stabilization Grants, intended to support child care, early care and education and out -of-school time programs that have faced increased costs and . Is this correct? A: Maybe, depending on how much of the grant you dont spend on business items. Q: Can I use this grant to pay myself? 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? This could include fish, gerbils, rabbits, and so on. There has never been this amount of federal funding dedicated to childcare providers, which makes this an incredible opportunity. No. See how Compt can help you and your employees utilize these federal funds: Schedule a Demo: Our customers have figured out how: lifestyle spending accounts! Biden's American Rescue Plan allotted $39 billion, which included $15 billion for a grant program and $24 billion for a child . Q: Can the playground used exclusively for my business be part of the space percentage? Communi cat i on wi l l child care, child and adult protective services, adoption, and child support services. Should I apply for the Stabilization grant?, Is the money I received from the grant taxable income, even if I didnt receive Form 1099?, Is it better to pay myself or spend it on my business?, These are some of the many questions Ive received during my February 10th webinar How to Save Money on Your 2021 Taxes.. Q: Can I use the Stabilization grant to purchase a home? Why are the first two programs not taxable income? A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. Q: Can I claim Social Security on my ex-husband? Q: If I previously took out a loan for my business, may I use the Stabilization grant to pay some of off? The purpose of STABLE is to respond to the urgent need to stabilize the child care sector in Georgia. For tax purposes, she should reserve a portion of the grant amount to go toward her taxes. 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. Does that mean I cannot offer a monthly or quarterly bonus? A: Yes. 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? A: You can count all hours that you work in your home, either caring for children or doing other business activities. The plan includes $24 billion in child care stabilization grant funding for states, territories, and tribes to distribute within their state using the Child Care and Development Grant (CCDBG) formula. It affects how we all work when we can work and for many, why we work. Please call us at (315) 446-1220. Congress declared that these programs are not taxable income. Keep in mind that all of these funds are taxable, so maintain records of how you . A: The standard meal allowance rate has been in effect since 2003. It may be the same or may not. 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. ); 45 CFR Parts 98 and 99; The American Rescue Plan (ARP) Act of 2021 A: Yes! Even if I didnt get Form 1099? chloe johnson peter buck wedding; le mal en elle fin du film Phase two will include application, awarding, and issuing of funding. <>/Font<>/Pattern<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 48 0 R 49 0 R] /MediaBox[ 0 0 540 720] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> See the funding breakdown by state, tribe, and territory, and more information about the grant on the. But you can pay yourself and then use that money to fund your IRA. One extra snack per day, per child is an additional $202 deduction. T he new mont hl y grant amount and pol i cy i s i n process and under revi ew. A: You should absolutely take it. The tax implications of the grants depend on several factors, namely, how the provider uses the funds, the providers household income, and possibly the state in which they live. So, this is not a requirement in Colorado. You can use the grant money to pay yourself and then pay off the loan. Child Care Stabilization Fund 5 Q: How many rounds of payments will be made? 3 0 obj [-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 4 0 obj If they are present 24 hours a day, five days a week, that represents 120 hours that you can count. A: I dont know. But, if you pay yourself, you can then use this money to purchase a home. Q: If I was audited, would they just audit my grant or my entire business? How long do I have to stay in business if I receive stabilization grant funding? A: Each state has its own rules about this. Below is an additional series of questions and answers about the Stabilization Grant. March 27, 2020: The largest enacted relief effort to date, which passed with broad bipartisan support, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was signed into law.The CARES Act provided the Child Care and Development Block Grant (CCDBG) with $3.5 billion and Head Start programs with $750 million. In other words, lets say you paid yourself $5,000 and used $2,000 for items used 100% for your business. You can deduct all of the reimbursed meals and snacks as well as un-reimbursed meals and snacks. <> You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. Q: How do I pay myself if I did not lose children during COVID, and how do I calculate it? 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. A: No. Your state may or may not see this as a major improvement. The application process is straightforward and designed to deliver grant funds directly to Oklahoma child care programs. This webinar for training and technical assistance providers was presented on June 24, 2021. (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. This income will not be the same as your food expenses. In South Carolina, these stabilizations grants are called "SC Building Blocks". Check with your state agency about this grant question. How do I treat this on my taxes? Q: Does going back to college count as hours? A: Pay yourself first. Q: On one slide it says that the PPP and EIDL programs are not taxable income. Once you apply, you will be told how much you will get. 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