Impact of child tax credits
The impact of the child tax credit will extend through 2022. For this reason, it is important to be aware of how the child tax credit will affect you and child care this year.
Child tax credit
The child tax credit is a refundable tax for families and individuals with qualifying children. It’s a major credit launched last year to help parents with childcare needs. Pre Kindergarten Schools near Me, That means paying an additional $250-300 per month per child for parents earning $150,000. Current law makes this tax credit permanently refundable. There is also talk of expanding this policy into the future. However, the most important thing to note is how this tax credit affects your child care.
When it comes to the childcare industry, this tax credit will benefit parents. The amount parents pay for childcare will be capped by nursery and child care workers. The credit saves parents from paying more than 7% of their household income on child care. This will help lighten the burden of many families. Kindergarten Programs near Me, Families struggling to pay child support funds from this credit can be used in nurseries as children under five years of age qualify. However, this policy does not only benefit families. Childcare workers’ wages will also increase.
The plans set out for the child tax credit include state funding to start and grow preschool for children ages 3 to 4. As a result, states will begin rolling out programs for high-need and high-needs areas. These state-funded programs will eventually expand to other areas.
Register with Kiddie Academy of Stafford
The impact of the child tax credit changes a few things, though. But the Kiddie Academy of Stafford is dedicated to the mission. At the Kiddie Academy of Stafford, we want to create lifelong learners who become creative students with strong hearts and minds. Our programs ensure that our attentive staff nurtures your child’s natural abilities and skills. If you have any questions about the impact of the child tax credit on child care, please get in touch with us.