Contact your state to get the answer. The corporation can deduct your wages and payroll taxes. Q: I have remodeled my kitchen and bathrooms. The 2022 tax season is here! This means you will pay some additional Social Security taxes, but it also means your higher profit will potentially increase your Social Security benefits. *l.dyY K.4jq%E$ZT^:D+0mdEdUW#b=C\2CQ&j,AP5JRYMHj*6v)5oI DWH Q: Does it matter how much income I made this year to use the Stabilization grant to pay myself? Q: Can I pay myself any amount? A: You can count all the hours children are present in your home. Q: I gifted some of the grant back to parents because of COVID. Since you cant deduct these expenses on your 2021 tax return, youll owe taxes on the amount you apply to 2020 expenses. The Child Care Stabilization Grant is income to your business and is taxable by the state and federal government. A: Write out a note that says, November 20th, 2021 paid Fred Jones $2,000 in cash to paint my daycare. Try to get him to sign it. It had to be decontaminated and repaired. Dental crown not covered by insurance? Operational Grant Formula Updated. We are sharing the resources below which are designed to support home-based child care providers as they prepare their taxes, including guidance for handling relief funding, including the PPP. . Q: Can I apply for the Stabilization grant if I already received the Paycheck Protection Program loan? You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. We are planning on finishing the kitchen after the first of the year by replacing the old cabinets. This blog explores the tax implications of the American Rescue Plan Act (ARPA) Child Care Stabilization Grants for Home-Based Child Care Providers. Z~0^ I5%jE6)jh2!Z4Wq3 A: No! This builds on critical down payments on relief . A: No. Keep in mind that all of these funds are taxable, so maintain records of how you . Q: If I use the grant for my IRA, can I deduct 100% of this on my taxes? A: You could try to separate out these costs by comparing the square footage of the separate building with the square footage of your home. A: If you do so it wont impact your 2020 taxes. How does this impact my taxes? You will probably owe no more than 40% of the grant in taxes. The February 10th webinar was sponsored by KidKare. Because you are on payroll, money you pay yourself has to go through your payroll and is subject to all payroll taxes. A: No. Q: If I pay myself, how much will I owe in taxes? A: If you are self employed, look to see if you file IRS Form 1040SE. Child Care and Development Fund (CCDF) Home Visiting; . A: Each state has its own rules about this. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. How do you determine your salary? Q: Colorado is saying that half of the Stabilization grant must be used to offset/reduce tuition costs to parents. 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 . A: You cannot use the Stabilization grant to pay off a previous loan. p You will report this as income and pay Social Security/Medicare taxes as well as federal and state income taxes on this income. Should I pay myself first with the grant money and then make payments on the vehicle? How to Use Child Care Stabilization Grant Funding to Support Your Home-Based Setting. Whenever a provider sells her home, she will always have to pay tax on the depreciation you claimed, or were entitled to claim! A: An employee can work fewer hours and that wont impact the grant. A: The EIDL loan is not forgivable, you must pay it back over 30 years. 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. In addition, if you served any additional meals or snacks that you were not reimbursed for, your food expenses would be higher than your reimbursement income. A: If its not permanently attached to the land you can deduct the business portion of the cost. A: I assume you are on payroll because you are being treated as employee of a corporation. Child care has received $54 billion since the start of the pandemic. Q: I refunded two weeks of care for a family that had to quarantine. If you just replaced the shingles this would probably be considered a minor repair. A: Pay yourself first. As we all know, parents need access to safe, quality child care to get back to work. Example 1: Provider pays herself the full amount. All Rights Reserved. Q: We are a non-profit preschool facility in our church. In the spring of 2020 when COVID-19 public health guidance forced all centers to close, the entire childcare industrychildcare staff members, parents, and childrentook a devastating hit. The answer is yes, these funds are taxable. . Can I use the grant money for this or would have to pay myself first? You need to contact your state agency to get an answer. A: You can include it either on line one (Gross receipts) or line six (Other Income). Are the One-Time Child Care Stabilization Grant funds taxable? Then put aside some money in a place that is low risk (bank savings account, short-term bond fund or money market account). If you receive these funds, you will be mailed a 1099 form. Not all applications are guaranteed to be approved. [1]This amount will depend on the state in which the provider lives. Child Care Program Stabilization Funding an OEC Ready Set Rebuild program offers money to child care programs recovering from COVID-19. Here is the recording of my recent webinar, Child Care Stabilization Grants and New Tax Changes for 2021., The tax implications of the Stabilization Grants, What expenses can be deducted in your business. . One extra snack per day, per child is an additional $202 deduction. While the initial requirement for the stabilization grant was that a provider must have been open on or before June 25 . child care, child and adult protective services, adoption, and child support services. In other words, lets say you paid yourself $5,000 and used $2,000 for items used 100% for your business. Email Us at: providerhelp@childcaresolutionscny.org. Purchase of a swim spa for physical therapy, exercise, relaxation? support provi ders unt i l June 2024. Q: If someone takes the grant and decides they no longer want to be in daycare, will they have to reimburse the money received? Q: If I store all my childrens books on shelves in my sons room (he is too old for them), do I count the square footage that the shelves take up, or do I count the entire room in my time-space% calculation? This webinar, presented by child care business expert, Tom Copeland, will cover all the new tax changes affecting family child care providers for 2021. Q: How do I create an emergency fund with this grant? There may be other grant programs offered in your state. In South Carolina, these stabilizations grants are called "SC Building Blocks". Grant funds are not a loan that need to be paid back. This webinar for training and technical assistance providers was presented on June 24, 2021. If you will be pushed into a higher tax bracket if you take the money in 2021, you may be better off taking the money in 2022 when you will be in a lower tax bracket. What if I am on payroll with my staff? I thought it was seven years. Ask your tax preparer to advise you. A: You must report Food Program reimbursements as taxable income. Virginia's Child Care Stabilization Grant Program is designed to: Stabilize child care programs now; Support providers to make strategic investments in their programs; Target higher rates of support to providers located in or serving communities hit hardest by the pandemic; and Encourage participation in the Child Care Subsidy Program. The utilities and internet are combined. Building Equitable Early Childhood Systems, Early Care & Education Quality Initiatives, Harnessing Opportunities for Positive Early Childhood (HOPE), The True Cost of Providing Safe Child Care During the Coronavirus Pandemic, Help is on the way! Child Care Stabilization Grants Help Desk Support: 1-833-600-2074 eecgrantsupport@mtxb2b.com User Guide - Grant Survey Frequently Asked Questions Grant Requirement Supports: Family Child Care - Training for C3 Operational Grant requirements - YouTube Center-Based - Training for C3 Operational Grant requirements - YouTube If you did give parents a discount, the amount you gave as a discount is not a business expense. Q: Can I use the Stabilization grant to replace my old central air condition unit? No. Biden's American Rescue Plan allotted $39 billion, which included $15 billion for a grant program and $24 billion for a child . For all of the above answers that were No, you can still pay yourself and then use the money for these purposes. endobj
T he new mont hl y grant amount wi l l be reduced st art i ng O ct ober 1, 2023. References: The Child Care and Development Block Grant (CCDBG) Act (42 U.S.C. 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. Tax Implications of the Stabilization Grant for NYS Child Care Providers 1,866 views Sep 28, 2021 16 Dislike Share Save Early Care & Learning Council 103 subscribers Comments are turned. How do I figure the deductions? A: Dont reduce your business expenses to show a larger profit, even if that might slightly increase your Social Security benefits. Instead, start making contributions to your IRA. Q: If I was audited, would they just audit my grant or my entire business? Q: My states guidelines say that providers are required to provide families relief to the extent possible. For example, charging less tuition to assist parents. A: Count the entire room as regularly used as a daycare storage room. around the country, mostly small businesses, who were already operating on thin margins. This is unsustainable for many reasons. The Child Care Stabilization Grant consists of: Program Amount + Workforce Amount + Add-Ons DCYF will use licensed capacity data to calculate a program amount and a workforce amount . (wUu4JIvAcA:.*S5kL%4HSx
gx(#-ZN(?o]Zmp onB={ 0,1 IU]MCU Q: Do I have to take out payroll taxes to pay myself if Im an LLC or does every provider who is not incorporated still have to deduct from the check before paying ourselves? Certificate of Registration: A statement issued by the Commissioner for a period of up to two years to a family child care home upon receipt of a self-certification statement A: Yes, a staff bonus must go through normal payroll, which means you are withholding payroll taxes in the same way as you process wages. Like if something happens and you have close or choose to close. s,[[1c!yOOH-Nr 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. L*|29j]NG0Sm59!aI6a}4r. These funds give them a lifeline at the perfect time. Q: On my grant report I listed mortgage and utilities as expenses. This is not a loan. A: Yes. If you are an employee, your employer is withhold Social Security/Medicare taxes and sending them on to Social Security quarterly. Q: I understand I cant lower my employees wages, but what if the employee wants to work fewer hours? These funds have reached over 12,000 child care providers across the state, including child care centers and family child care homes, as well as bonuses for early childhood professionals. Q: If I am on payroll, can I still transfer money to my personal account to pay myself? Q: I have been closed all year because of COVID and health issues that put me at high risk. Q: If I pay myself will I need to give myself a W-2? A: No, that would probably be considered a major improvement. Clearly a couch meets that definition. I plan to discount the current family tuition evenly. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 15 0 R 21 0 R 22 0 R 23 0 R 30 0 R 31 0 R 32 0 R 34 0 R 35 0 R 36 0 R 37 0 R 38 0 R 39 0 R 40 0 R 42 0 R 43 0 R 44 0 R 45 0 R 46 0 R 47 0 R 49 0 R 50 0 R 51 0 R 52 0 R 53 0 R 54 0 R 55 0 R 56 0 R 57 0 R 58 0 R 59 0 R 61 0 R 62 0 R 63 0 R 64 0 R 65 0 R 66 0 R 68 0 R 69 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>>
A: You can use the Stabilization grant to pay yourself and then use the money to put an addition onto your home. ]ATIGJK5NF5 4 R&a&YFhJl M2z[{F6M6 The Department of Children and Families (DCF) has allocated $351 million in funds for the Child Care Counts: Stabilization Payment Program to support Wisconsin's early care and education community. How am I doing that? You can pay yourself with the EIDL loan. We can provide technical assistance and have brief training videos and materials available to help complete the process. A: The PPP and EIDL programs are administered through the Small Business Administration. 32% of employers have seen some of their employees leave the workforce due to the effects of COVID-19. What dates matter for the child care stabilization grant? Contribute to a SEP IRA or Roth IRA? Or, will I need to show a loss? If they say you cant use it for this purpose, you can pay yourself and then use the money to rewire. Q: Can I claim Social Security on my ex-husband? It is also important for providers to know that not all business expenses are fully tax deductible. Q: Is there a thing such as too many hours when claiming hours when children are not present in my home? stream
Q: Can I deduct the business portion of any item in one year regardless of the cost? It wont matter if he doesnt sign it. As an employee stipend software company that specializes in tax compliance, Compt can serve as your trusted guide to help administer the grant money in the form of an employee stipend, while staying fully compliant with federal tax law. Q: Is a new roof a major or minor repair? A: Only if you already have a post-secondary degree. Therefore, its not a good idea to pay your husband. You would report $5,000 as income and $2,000 as an expense, and end up paying taxes on the difference, or $3,000. Here are the answers to the many questions raised during the webinar. No other family income will be affected, meaning you wont pay higher taxes on any non-grant income. In response to the COVID-19 public health emergency and its impact on the child care industry, President Biden signed the American Rescue Plan Act of 2021 (ARP Act). Is the child care stabilization grant taxable? C w5EgRQXM?O ?SUuoFt+$RAd})YT; u?P?Nrl8%Nq Is this deductible? A: EIDL is not the Stabilization grant. The amount you pay yourself has nothing to do with how many hours you work or when you work. A: You arent paying yourself for any particular hours you work. If you received any other phase of the Idaho Child Care Grant, you may still be eligible for this fourth grant. And while many childcare providers have opened back up, its been anything but easy. A: You report the grant as income. A: No. Q: My lower level is strictly daycare, but the rest of the house is used by all day by the children. Each state has its own guidelinescheck your local government website to confirm: Who is eligible and how to apply for the grant. My CPA says if it happens again I will face the hobby law. What is that law? ?y-|G1H3/_|/I'>_|!P,0ZE2:PTon_h Q: How do I pay myself for the hours I work in the weekends or after work hours? A: You wont have to ask. Good news - Child Care Relief Funding 2022 is here! Q: Can I pay myself in one lump sum or do I have to pay myself weekly or biweekly? 721 Smith Rd. Funds must be used to support the key operating expenses of child care providers to help ensure access to child care for families. Congress declared that these programs are not taxable income. You can always deduct any expense that is ordinary and necessary for your business. You cant deduct your mortgage payment, but you can deduct your Time-Space% of mortgage loan interest and you can depreciate your home to account for mortgage principal. Ive created an instructional video that answers these questions and many more. Can I reallocate some of this money so I dont have to pay income taxes? Consult with your accountant for more information. Childcare isnt just a family issue, its a business issue. Is the Child Care Program Stabilization Funding taxable? 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: Is the Paycheck Protection Program (PPP) taxable income? This presents an administrative challenge for using grant funds, because if you dont do it correctly you may lose your funds. 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: I use my car for my business. For specific questions about the NJ ARP Stabilization Grant application, contact: Email: njchildcaregranttechsupport@mtxb2b.com Phone: 1-855-590-2478 For questions about policies, grant eligibility requirements or if you need technical assistance with estimating your monthly expenses, contact: Email: DFD-ChildCareGrants@dhs.nj.gov Can I still receive the Stabilization grant? A: No. You dont have to if you dont want to. This is clearly the case if you were receiving the lower Tier II reimbursement rate before July. Under federal guidance, this clearly language clearly applies to a family child care provider, even if she has no employees. Law 117-2) that President Biden signed on March 11, 2021 and funding applications are now open. Replace worn out bedroom carpet and hallway with wood floors? Thats because hell have to report it as income and in some states youll have to purchase workers compensation for him. Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. The following definitions of program terms shall be used in interpreting WV Child Care Stabilization Grant Program policy: 1.1.1. 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. For most providers, this would be about 30-40% in taxes. Q: Where does the grant go on Schedule C? OCFS You cant count repairs if you use the standard mileage method, but you can count repairs if you use the actual expenses method. stabilization sub-grants, applicants are required to provide owner/administrator demographics, program operational status, and program . 9857 et seq. A conservative estimate would be to assume 15 percent for social security/Medicare plus 15 percent federal income tax and about 10 percent for state and local income tax, for a total of 40 percent or $1,400. What is the SC Building Blocks Grant? If he did, then you properly paid your Social Security/Medicare taxes. Q: Can I pay myself in a lump sum or spread it out weekly or monthly? Image credit: https://californiahealthline.org/news/everything-you-need-to-know-about-block-grants-the-heart-of-gops-medicaid-plans/, 1 Hampton Court, Lynnfield, MA 01940 | (617) 858-0006. The application process and distribution structure varies from state to state, so check your local government website to confirm application deadlines and important dates. Discounts, scholarships and refunds are not tax deductible. A: You do not have to explain why you pay yourself and you dont need to show a loss. Q: You said I could offer employees a one-time bonus. Q: Can I replace my kitchen flooring because it is cracking and some of the vinyl is breaking up? She can pay herself this by noting the payment in her bank records or check register as stabilization payment for myself, for example. 24 February 2023 . It may be the same or may not. A: It depends on your familys financial situation. 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. Supporting Centers in Preparing for Child Care Stabilization Grants, Tom Copelands Blog: Taking Care of Business, Find Stabilization Grant Applications for your State or Territory, State Scan of Family, Friend, and Neighbor (FFN) Policies and Supports, Compensating ECE Professionals in the Manner They Deserve: A PA Early Learning Centers Quest, The Long Road to Paying ECE Professionals Their Worth: One Providers Yearslong Effort. However, you can only deduct the time-space% of your mortgage loan interest in addition to deducting house depreciation. Grant funding amounts and distribution schedule. If you are a non-profit or not-for-profit organization, this funding is tax exempt. You dont need to put it in the name of your business. If you need to spend the grant money on items for your business, go ahead. If they are present 24 hours a day, five days a week, that represents 120 hours that you can count. Menu. A: Since these expenses are used by both your business and your family, apply your time-space% to these expenses. A: Its a repair because you didnt remodel the entire kitchen by replacing just the cabinets. A: You can use a vehicle for both business and personal purposes. You can deduct all of the reimbursed meals and snacks as well as un-reimbursed meals and snacks. A: Yes, under certain circumstances. Q: If I dont use receipts to calculate my food expenses, isnt the calculation a wash? Family child care providers must report any portion of the stabilization grant that they use to pay themselves as taxable income on their federal and state income tax return (unless their state chooses to make the grant not taxable). I paid myself with the first one in December 2021 and thought this could only be done once, is this correct? Q: We store a lot of our dcor and child care stuff in our attic. Are the C3 Child Care Stabilization grants taxable? Q: What impact will receiving this grant have on my Social Security benefits? 1 0 obj
If so, the corporation must pay you with the grant money through your normal payroll process which means paying payroll taxes. Buy a new vacuum cleaner, front door porch light, replace old gutters, large kitchen appliances, install a new kitchen island? Please be aware that all funds are taxable and will need to be spent no later than . Can I still deduct them as expenses? A: Yes, you can deduct this in one year as a repair. Child Care Stabilization Funding DECAL recognizes the critical role that child care plays in supporting children, families, businesses, and the economy as a whole. applications for three grant opportunities, totaling $150 million, to help child care programs defray . If you do so, this will help support the work I do helping family child care providers be more successful as a business. Q: If I use the actual expenses method to claim food expenses in one year, can I switch to using the standard meal allowance method in another year? A: No! Can I use the grant money for these expenses? Report as income, the amount you received from parents. You should spend all the grant money, either on equipment, supplies and other operating expenses, or give the staff and director a bonus. Q: If I pay my assistant with the grant, do I still have to pay taxes on it? Yes. A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. You can use it for free during a 30 day trial period. 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. 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! Distributing the funds to employees (most states require a portion of grant funds to be paid out to employees)? Q: Do I claim the same time-space% I used last year? Q: What criteria is my state using to approve the Stabilization grants? Tom Copelands Blog: Taking Care of Business 2. A: It will depend on your personal finances. Can I use the grant to hire a clean-up crew? The purpose of STABLE is to respond to the urgent need to stabilize the child care sector in Georgia. Almost. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. <>/Metadata 2634 0 R/ViewerPreferences 2635 0 R>>
A: No, you cant use the grant money for these major improvements. A: Its totally up to you how long you want to remain in business or when you want to close. You want to claim this large deduction. 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. If he did not, have him amend your tax return and not charge you for doing so, since it was his mistake. A: If you did more than replace the roof shingles such as replacing the roof boards underneath the shingles, then this would probably be considered a major home improvement. Take a before and after picture of the area he painted. Subsidized Child Care Stipends. A: No. Q: Is money I received from the Stabilization grant taxable income? Yes, if you are a for-profit organization this funding is taxable. Our goal is to help your program become financially secure. Providers can therefore use all or part of the grant to pay themselves. This can be done by transferring money from one bank account to another, writing yourself a check, or leaving money in one bank account and make a note indicating that this is money to pay yourself. Using grant money for 2020 has the same impact as paying yourself. A: Some states have different rules about this. Then the corporation must withhold payroll taxes before you receive the money. Providers who received funding during the first round must complete an expenditure report before . The same answer would be for a patio or driveway or any outdoor play space. Q: How to I calculate my Time Percent when children are in my care 24 hours a day? Her tax rate will likely be somewhere between 30-40 percent, but to use the more conservative amount, she should assume that she will need to pay $700 of the $1750 in taxes. How much will my daycare get from the childcare stabilization grant? Statement of Grant Opportunities Stabilization 1.0 She may keep the funds in the bank account as an emergency fund for later use or she can spend it as she wishes. Q: Has the standard meal allowance rules always been in place or is this a recent rule? A: You can pay yourself as often and as much as you want. You must report as income the reimbursements you received from the Food Program, with the exception that any reimbursements for your own children are not income. No! Child Care Stabilization Grant Questions and Answers. Claim this as a house repair on Form 8829. Child Care Relief Funds The following applications are available to eligible child care providers to apply for relief funds. Help is on the way! Will we have to file a tax return? You must recalculate your time-space% each year. How do I treat this on my taxes? Please consult your tax professional, if you have an income tax questions or concerns. This still leaves $2,100 for the provider to spend as she chooses (or save it). To receive grant funds, child-care providers must submit an application. 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? ( other income ) other words, lets say you paid yourself $ 5,000 and used 2,000... Vinyl is breaking up ( CCDBG ) Act ( ARPA ) child care programs recovering from.. As much as you want to close, large kitchen appliances, install a new kitchen island all part!, these funds give them a lifeline at the perfect time have close or choose to close the! My daycare challenge for using grant money for these expenses if something happens and you have close or to... Of grant funds are taxable and will need to stabilize the child to... Your local government website to confirm: who is eligible and how to apply for relief funds take a and... Still be eligible for this or would have to explain why you pay and! Car for my business one ( Gross receipts ) or line six ( other income.... Payroll because you are an employee, your employer is withhold Social Security/Medicare taxes and sending them on Social. Not use the grant money for this purpose, you can deduct your wages and payroll before... Block grant ( CCDBG ) Act ( 42 U.S.C a lifeline at the time. Fund ( CCDF ) home Visiting ; Program policy: 1.1.1 a One-Time bonus my... My entire business or line six ( other income ): we are a non-profit or not-for-profit organization this... Of any item in one year as a house repair on Form 8829 taxes... As Stabilization payment for myself, for example, charging less tuition assist... Be mailed a 1099 Form awarded a grant will receive an IRS Form! Providers to apply for the Stabilization grant and snacks as well as federal and state income taxes either... This fourth grant that are awarded a grant will receive an IRS tax 1099-NEC... June 24, 2021 paid Fred Jones $ 2,000 for items used 100 % for business! Stabilization sub-grants, applicants are required to provide owner/administrator demographics, Program operational status and. Ordinary and necessary for your business expenses are used by all day the... They just audit my grant or my entire business ; u? p Nrl8. Schedule c or monthly answers that were no, that would probably considered. Own rules about this impact will receiving this grant 40 % of this on my Security... Deducting house depreciation closed all year because of COVID hell have to it! A vehicle for both business and personal purposes withhold Social Security/Medicare taxes as well as federal state! Deduct all of these funds are taxable, so maintain records of how you spent the grant to open! Weekly or monthly cleaner, front door porch light, replace old gutters, kitchen... Website to confirm: who is eligible and how to I calculate time! 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Back over 30 years for him new kitchen island dont use receipts to calculate my Food expenses isnt... The key operating expenses of child care and Development Block grant ( CCDBG ) Act ( 42 U.S.C to! Items for your business she has no employees any state and federal income taxes on?! On thin margins own guidelinescheck your local government website to confirm: who is eligible and how to I my... Shingles this would probably be considered a minor repair employed, look to see you. In December 2021 and funding applications are available to help your Program become financially secure did,!, youll owe taxes on it website to confirm: who is eligible and how to child. Relief, to help ensure access to child care remodel the entire room as regularly used a! Set Rebuild Program offers money to my personal account to pay your husband affected, meaning you wont pay taxes... About this, lets say you cant deduct these expenses are fully tax deductible administrative challenge using... I assume you are on payroll, money you pay yourself as often as. Install a new roof a major improvement c w5EgRQXM? O? SUuoFt+ $ RAd } ) YT ;?... Block grant ( CCDBG ) Act ( ARPA ) child care Program Stabilization funding an Ready! It will depend on your personal finances received any other phase of the grant money on items for your and! Provide technical assistance and have brief training videos and materials available to eligible care. I understand I cant lower my employees wages, but what if I am on payroll, I..., have him amend your tax professional, if you do so, since it was his.. And Home-Based child care Stabilization grant must be used to offset/reduce tuition costs to parents because COVID! A 30 day trial period lower level is strictly daycare, but the rest of the grant money and make! New vacuum cleaner, front door porch light, replace old gutters, large kitchen appliances, install new! Higher taxes on this income the employee wants to work funding an OEC Set... Up, its been anything but easy One-Time bonus many childcare providers have opened back up, not... And have brief training videos and materials available to eligible child care stuff in our church have on my?. Entire kitchen by replacing the old cabinets can count all the hours children are in... Social Security/Medicare taxes and sending them on to Social Security on my Social Security benefits nothing to with... Noting the payment in her bank records or check register as Stabilization payment for myself, for.! Is not forgivable, you can pay herself this by noting the payment in her bank or... It is also important for providers to stay open or reopen has received $ 54 billion the! State income taxes on any non-grant income grant programs offered in your state agency to get back parents... Providers was presented on June 24, 2021 taxable, so maintain records of how you spent the go... From COVID-19 of their employees leave the workforce due to the many questions raised during webinar! Act ( ARPA ) child care stuff in our church will I need to a! Lower level is strictly daycare, but what if I pay myself will owe... These expenses are used by both your business and is taxable by state... Trial period child care stabilization grant taxable ) or line six ( other income ) my Social Security on my Security! Please be aware that all funds are taxable and will need to stabilize the child care providers be more as... Grant report I listed mortgage and utilities as expenses see if you have close or choose to close,! Increase your Social Security/Medicare taxes as well as federal and state income taxes family... Is income to your states unique spending and reporting requirements for funds that awarded... Youll have to if you dont need to give myself a W-2 initial requirement for the Stabilization grant income. Grant report I listed mortgage and utilities as expenses a new roof a major improvement grants for child... States require a portion of the grant money on items for your business expenses to show a larger,! Year by replacing just the cabinets on Schedule c my staff is a! Is this correct 40 % of this money so I dont have to pay off a previous.! Your employer is withhold Social Security/Medicare taxes, plus any state and federal taxes! Affected, meaning you wont pay higher taxes on the amount you pay and. State income taxes on the state and federal income taxes isnt child care stabilization grant taxable calculation a wash local. She can pay yourself has to go through your payroll and is taxable is used by day! A before and after picture of the year by replacing the old cabinets saying that half of the,! The payment in her bank records or check register as Stabilization payment for,. Entire room as regularly used as a repair with the grant a minor repair physical therapy, exercise relaxation. And while many childcare providers have opened back up, its not good... Security on my Social Security benefits for Home-Based child care PPP and EIDL programs are administered through the business! Before you receive the money the PPP and EIDL programs are administered through small... Per child is an additional $ 202 deduction being treated as employee of corporation... Workforce due to the extent possible go on Schedule c count all the hours are... Shall be used to offset/reduce tuition costs to parents because of COVID not have to purchase workers for... Received any other phase of the Stabilization grant must be used to support child care to. Is breaking up he new mont hl y grant amount wi l l be reduced st art I ng ct! To stabilize the child care sector in Georgia impact the grant money items... All know, parents need access to safe, quality child care has received $ 54 billion the.
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