If you do sign up, please use the referral code 0659. My CPA says if it happens again I will face the hobby law. What is that law? A: You cannot deduct any costs associated with a dog or cat. A: Only if you already have a post-secondary degree. The American Rescue Plan Act (ARPA) of 2021 was signed into law on March 11, 2021, issuing three streams of federal funding to states through the Child Care and Development Fund which include Supplemental Discretionary, Stabilization, and Mandatory/Matching funds. Youll have to contact the state agency that administers this grant. Is this a home improvement or a repair? Grant awardees will be determined based on provider type and the number of classrooms licensed to operate within each program. Stipulations for what the funds can be spent on and how to properly report them. Q: I have remodeled my kitchen and bathrooms. These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). Q: If I have parents are paying me, can I still pay myself and just make more money those months I pay myself? Is this correct? s,[[1c!yOOH-Nr Is the Child Care Provider Stabilization Grant taxable? A: If you do so it wont impact your 2020 taxes. A: Dont reduce your business expenses to show a larger profit, even if that might slightly increase your Social Security benefits. Q: I replaced the flooring in my kitchen. Why are the first two programs not taxable income? Q: We started adding more kitchen cabinets this summer. g}?GMj(rG-s%&>j^D!sT=MtT7Y-[n+UUzPK7T>e\ ?t^YBeo:(IhZ12C#h=I4V%Vc)8=7N (h&f +f?4c[JbLucy?9FY]dSHFW Subsidized Child Care Stipends. Assistance is available Monday-Friday from 8:30 AM-4:30 PM by email at DCDEE_Support@dhhs.nc.org or phone (919) 814-6300, Option 2. Q: I use my car for my business. Like if something happens and you have close or choose to close. Q: Do I claim the same time-space% I used last year? Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. For all of the above answers that were No, you can still pay yourself and then use the money for these purposes. Then put aside some money in a place that is low risk (bank savings account, short-term bond fund or money market account). How do I figure the deductions? Q: If I give my staff a bonus am I doing it through payroll? Each state will determine how much a provider will receive based on a criteria they have developed. *l.dyY <> Are you saying this is not deductible? Therefore, its not a good idea to pay your husband. The purpose of the child care stabilization grants is to support child care centers and home-based child care providers to stay open or reopen. Q: If my husbands is disabled and collects Social Security Disability Insurance, will it change to regular Social Security when he reaches age 70? Therefore, you would need to file 1099-Gs to avoid penalties for failure to file (Internal Revenue Code Section 6721) or failure to furnish (6722). CHILD CARE STABILIZATION GRANT DATA NCDHHS Division of Child Development and Early Education has created two data dashboards to provide Child Care Stabilization Grants summary data. Even if I didnt get Form 1099? Example 3: Provider uses some of the grant to pay herself and some for business expenses. . Will I have to pay taxes on what I am getting reimbursed for? Tom Copeland: The Tax Implications of the Child Care Stabilization Grants 6,690 views Nov 15, 2021 86 Dislike Share Save usgovACF 12.3K subscribers This video identifies the benefits of the. So, this is not a requirement in Colorado. A concrete slab in the backyard used for basketball, skating, etc.? Q: You said that almost everything in your home is a deduction (welcome mat, chairs, flowers in your front yard), can you clarify if these are 100% deductible or time-space%? 721 Smith Rd. Child Care Relief Funds The following applications are available to eligible child care providers to apply for relief funds. Take a before and after picture of the area he painted. As long as you keep records showing you worked these hours, claim all the hours. And while many childcare providers have opened back up, its been anything but easy. If its only used by your business, you can deduct 100% of the cost in one year. The following definitions of program terms shall be used in interpreting WV Child Care Stabilization Grant Program policy: 1.1.1. 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 . 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. Yes. But you can pay yourself and then use that money to fund your IRA. You want to know his address so you can send him a Form 1099 at the end of the year. ! A: I dont know if you state would consider this a major improvement or not. Q: How can I build up my Social Security benefits before I retire when my profit has not been very high? Q: Would you need a separate account to pay yourself? 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 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. To paint a picture, childcare centers today are facing decreasing revenues due to lower enrollment, higher expenses to operate safely during the pandemic and severe and ongoing staffing difficulties. To receive grant funds, child-care providers must submit an application. A: If you are incorporated and are being treated as an employee of your corporation, then the corporation will report the grant as income. A: You arent paying yourself for any particular hours you work. Q: Can the playground used exclusively for my business be part of the space percentage? California Stabilization Stipend. Q: If I previously took out a loan for my business, may I use the Stabilization grant to pay some of off? Therefore, my answers below may not be the same answers your state gives you. Are the grant funds taxable? But, if you pay yourself, you can then use this money to purchase a home. Distribution date Deadline; Cohort 1: (Center (100+) October 5, 2021 : October 18, 2021 at 11:59 p.m. CT: Cohort 2: Center (76-100) . You dont have to if you dont want to. You would be replacing lost tuition with grant income. How do I get the childcare stabilization grant? The parents got a benefit, but you didnt. It is also important for providers to know that not all business expenses are fully tax deductible. She may keep the funds in the bank account as an emergency fund for later use or she can spend it as she wishes. Phase two will include application, awarding, and issuing of funding. Q Im receiving this grant quarterly through April 2023. If you are a non-profit or not-for-profit organization, this funding is tax exempt. Q: My lower level is strictly daycare, but the rest of the house is used by all day by the children. stabilization sub-grants, applicants are required to provide owner/administrator demographics, program operational status, and program . Using grant money for 2020 has the same impact as paying yourself. . T he new mont hl y grant amount wi l l be reduced st art i ng O ct ober 1, 2023. Download our ebook to see why employee stipends are the most common new perk for remote & hybrid work. OCFS has awarded $208 million to 12,578 child care providers through the Stabilization 2.0 for Workforce Supports grant. In this case, she can deduct the business portion of these expenses by estimating the percent of time they will be used for business versus personal purposes (usually her time-space percentage). A: An employee can work fewer hours and that wont impact the grant. The Child Care Stabilization Grant Program is the latest round of funding the Mills Administration has made available for child care providers, in addition to $175 million for system improvements to support families and providers outlined in the DHHS Child Care Plan for Maine, as well as $10 million in capital funds for child care facilities . Q: If I only have one child, can I still apply for the grant? Can painting the house be deducted as a repair? Afterwards it costs $99.00 a year. 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? Painting is a repair. Child Care and Development Fund (CCDF) Home Visiting; . Is the child care stabilization grant taxable? It doesnt matter if you havent lost any children. Using Indiana's federal COVID-19 relief funding, the Office of Early Childhood and Out-of-School Learning (OECOSL) launched the Build, Learn, Grow Stabilization grant program to provide critical funding to early childhood and school-age providers, support their program's operating expenses and help them rebuild their programs for the future. It sounds to me like this is a repair, but you should contact your state to get an official answer. A: Each state has its own rules about this. Q: We store a lot of our dcor and child care stuff in our attic. For further guidance on the tax implications of the Child Care Stabilization Grant, please contact your accountant or financial advisor. This program doesnt just impact parents and childcare providers either. All programs will receive a 1099 for grant funds received. Are these expenses tax deductible? A: Yes. <>/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>> b+hxG%YM8bjW8PePQj@Cx9]3Nl6jSx $ V}$%*Qfky.zL@)^f@H{rVKJ4@(TKjZKBa0JjDRP+fT9efu'yur B9f9xk!>m7"`TPhghw /'toK|yk.I/pI:2oK[zt#'.0+mlbxGSC! Provider B receives a $3,500 grant and uses it to pay expenses for her business that she would not otherwise pay (e.g., extra employee wages, cleaning supplies, toys). Q: Can I apply for the Stabilization grant if I already received the Paycheck Protection Program loan? In other words, lets say you paid yourself $5,000 and used $2,000 for items used 100% for your business. If you spend all of the grant money on items used exclusively for your business, you won't owe and taxes, but you won't have any money left over at the end of the year. Should I pay myself first with the grant money and then make payments on the vehicle? You will then report your wages as income. Is this a deduction? It affects how we all work when we can work and for many, why we work. You can use the grant money to pay yourself and then pay off the loan. I thought it was seven years. This webinar for training and technical assistance providers was presented on June 24, 2021. Q: If I pay myself the entire amount of the grant money, will I need to explain why? 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. A: Its totally up to you how long you want to remain in business or when you want to close. child care, child and adult protective services, adoption, and child support services. Stabilization Grant program is capped at $850,000 per site for the duration of the program. A: The cost of any item that is used exclusively for your business can be deducted 100%. 9857 et seq. Funding for the grants comes from the American Rescue Plan Act. Can we use the Stabilization grant to repair or replace these items? In South Carolina, these stabilizations grants are called "SC Building Blocks". Each state has its own guidelinescheck your local government website to confirm: Who is eligible and how to apply for the grant. You can use it for free during a 30 day trial period. Q: My son is a part-time assistance that I dont do payroll taxes for him. Keep in mind that all of these funds are taxable, so maintain records of how you . You cant count repairs if you use the standard mileage method, but you can count repairs if you use the actual expenses method. Q: If I am on payroll, can I still transfer money to my personal account to pay myself? The American Rescue Plan Act (ARPA) Child Care Stabilization Grant, which some call the daycare grant, is a federal financial assistance program recently launched by the Office of Child Care to provide $24 billion of economic relief to child care programs impacted by the COVID-19 pandemic across the country. Well answer: One of the most common questions about this federal relief program is "how much is the grant?" Then the corporation must withhold payroll taxes before you receive the money. If you are considered a hobby, you might not be able to deduct all of your expenses. Act (Public Law 117-2) to help stabilize the child care sector via subgrants to child care providers due to the COVID-19 pandemic. Centers and home-based child care providers to know his address so you can deduct 100 % for business. Further guidance on the vehicle providers due to the COVID-19 pandemic awarded a grant will receive a for! 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