child care stabilization grant taxable

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Under 3 DC Coalition members Sia Barbara Ferguson Kamara, LaDon Love, and Kim Perry contributed to this blog. In addition, expenses for this purpose are reported on the ACF-696 of ACF-696T CCDF Financial Reports under the non-direct services for systems expenditures, which are not subject to the five percent cap on administrative expenditures (45 CFR 98.54(b)(1)). Can I reallocate some of this money so I dont have to pay income taxes? Any other cessation of work or attendance at a training or education program that does not exceed three months, or a longer period of time established by the Lead Agency. At this time, there is not a federal spending deadline for programs receiving the C3 stabilization funding. What type of private information should not be submitted during the fiscal monitoring review process? Once a family begins receiving CCDF, their subsidy can only be terminated at redetermination through the graduated phase-out policy, if the reason for termination is income eligibility. The ARP ActVisit disclaimer page at section 2202(e)(1) specifies that subgrant funds can only be used for the following operating expenses: No, ARP Act stabilization subgrants cannot be used to help a new child care provider open or a permanently closed child care provider reopen. General Grant Questions Q1. The tutoring or academic support services do not occur during the regular school day pursuant to 42 U.S.C. Enrollment Capacity Average Enrollment (Before and After Care, Summer Care) 7 Yes. CCDF requirements include completion of CCDF health and safety training requirements, completion of comprehensive background checks, and other lead agency-specific requirements, such as participating in a quality rating and improvement system. To qualify for the EITCVisit disclaimer page, filing units must not exceed the income/earnings eligibility threshold specific to the filing units filing status (married vs. single/head of household) and number of children (zero, one, two, or three or more). What is the difference between a major renovation and minor building updates or maintenance? . Here is a link to the US Department of Labors webpage on UC benefits related to the COVID-19 outbreakVisit disclaimer page. Lead agencies have the flexibility to disregard bonuses and increases in pay to child care workers as income when determining a child care workers eligibility for CCDF. In order to request temporary waivers for extraordinary circumstances in response to emergency situations, the Lead Agency must submit a written request to the Office of Child Care (OCC) Director (with a copy to the OCC Regional Program Manager), indicating the reason why the Lead Agency is requesting the waiver including a description of the extraordinary circumstances. This is consistent with the statutory requirement at section 658E(c)(2)(S)(ii) of the Act that requires Lead Agencies to support the fixed costs of providing child care services by delinking payments from an eligible child's occasional absences due to holidays or unforeseen circumstances such as illness, to the extent practicable. A: You can deduct your Time-Space% of your utilities. A: If you pay yourself with the grant and then buy items used 100% for your business, you wont owe any taxes on the amount you use the grant for this purpose. Further, child care providers should keep certain things in mind when determining how to interact with parents in order to control COVID-19. 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. 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). Some page levels are currently hidden. In order to be a qualified child care provider and eligible to receive a subgrant, a child care provider must either be open to provide child care services or temporarily closed due to public health, financial hardship, or other reasons relating to the COVID-19 public health emergency at the time of application. And while many child care providers have opened back up, its been anything but easy. Each state will receive anywhere from $39 million to $2.9 billion in funding from the grant to distribute as they see fit to eligible child-care providers. Extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include structural change. Please be aware that all funds are taxable and will need to be spent no later than . We do note that families of essential workers would continue to be eligible for the full minimum 12-month eligibility period if the households income fell below 85 percent of SMI. Q: Do we need to enter into KidKare if I am paying myself? If a Lead Agency is unable to fully liquidate its CCDF FY2018 incurred obligations by September 30, 2020 due to the COVID-19 pandemic, there are three options to consider. While these funds may not be used for direct services, they can be used to cover some of the costs associated with providing and expanding direct services, such as start-up grants and administrative costs associated with using grants or contracts for direct services. Child Care COVID-19 Grant Program | Arizona Department of Economic Security Arizona Department of Economic Security Your Partner for a Stronger Arizona About Services How do I? Lead Agencies also have flexibility in treatment of regular UC benefits. What can EEC-licensed programs use the C3 grant funds for? Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. Attestation: You have attested, when open and providing services, to implement policies in line with guidance and orders from state and local authorities and to the greatest extent possible the One example is the Rural Tribal COVID-19 Response (RTCR) program established by the Health Resources and Services Administration (HRSA) with CARES Act funds which allows rural tribes to increase their capacity to test suspected COVID-19 patients within their communities. Any expenses incurred by the intermediaries that are not part of the subgrants will count against the administrative set-aside of either 10 percent for states and territories, or 20 percent for tribal lead agencies, and are subject to the same obligation and liquidation deadlines. 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. Q: I did not include the grant I got in 2020 on my 2020 tax return. The provider can indicate the preferred method in LEAD. The Child Care Stabilization Grant (CCSG) Program sustains Arizona's child care network by giving a consistent, reliable funding source directly to child care providers to cover increased cost and challenges due to COVID-19 through June 2023. Welcome to the Child Care Strong grants, administered by MDHS's Division of Early Childhood Care Department. Child Care Stabilization Grant OCCRRA is excited about the opportunity to support Ohio's Child Care Stabilization Sub-Grants. Goods and services necessary to maintain or resume child care services. A provider does not have to be serving a child eligible for CCDF in order to be considered as meeting CCDF requirements. Lead Agencies may also establish periods of continued assistance longer than three months. Mental health supports for children and employees. 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. Q: If I use the grant money to pay myself and then use the money to repair my home or fix my basement, can I deduct this as a business expense? Dental crown not covered by insurance? For example, lead agencies may provide stipends to child care providers to cover the cost of transportation to vaccine sites and paid time off to receive the vaccine and recover from any side effects. CCDF funds, including supplemental funds, cannot be used to cover tuition or copayments for families that are not eligible to receive CCDF child care subsidies. With limited exceptions, the funding of home visiting programs is not an allowable use of the ARP Child Care Stabilization Funds. $3,500 income $3,500 expenses = $0 taxable income and $0 taxes owed. 32% of employers have seen some of their employees leave the workforce due to the effects of COVID-19. A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. In cases where the income of families of essential workers exceeds the federal income eligibility limit of 85% of state median income (SMI), Lead Agencies may terminate CCDF subsidies funded by the CARES Act within the eligibility period without a waiver from ACFfor example, if the Lead Agency reverses their policy to disregard the income for essential workers or when CARES Act funds are depleted. Lead Agencies have the option to continue serving the child until the next eligibility redetermination, and may establish eligibility periods longer than 12 months. Ensuring parents have access to their children while they are attending child care is a longstanding CCDF requirement that supports program quality and transparency, as well as parent and family engagement. A child in a family that is receiving, or needs to receive, protective intervention is eligible for child care subsidies even if certain eligibility criteria are not met. Yes, Lead Agencies can provide hazard pay to providers that remain open during COVID-19. The request must also provide sufficient detail on the provision(s) from which the Lead Agency is seeking temporary relief and how relief from the sanction or provision, by itself, will improve the delivery of child care services for children and families. You may view payment status by logging in. The application process and distribution structure varies from state to state, so check your local government website to confirm application deadlines and important dates. The government has taken notice, and their answer is The Child Care Stabilization Grant, part of the American Rescue Plan Act (ARPA). These funds give them a lifeline at the perfect time. For example, a Lead Agency could increase income eligibility up to 85% of State Median Income; many Lead Agencies currently have lower thresholds. All Lead Agencies may use CARES Act or CRRSA Act funds for minor renovations, as described in 45 CFR 98.56(b), but only Tribal Lead Agencies may use the CARES Act and CRRSA Act funds for construction or major renovations. For example, a shared framework might involve using a common provider subgrant application, developing a shared model for estimating child care provider operating expenses and setting subgrant amounts, and coordinating outreach to eligible child care providers. Lead agencies may determine how they monitor child care providers receiving ARP Act stabilization funds, including what types of documentation and reporting are required. 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. other COVID-related expenses (including past expenses). A lock icon ( A concrete slab in the backyard used for basketball, skating, etc.? 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. (45 CFR 75.2Visit disclaimer page). Lead Agencies have the option to waive the income eligibility requirements for children who receive (or need to receive) protective services, if determined to be necessary, on a case-by-case basis. Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. Thank you for your website feedback! 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