Paying for Child Care

FINANCIAL ASSISTANCE OPTIONS

How can parents receive help paying for child care expenses?

The Department of Health and Human Services of New Hampshire offers parents financial assistance to help defray some of the costs of child care. Parents must be income eligible and involved in a work, training or school related activity. You must apply for assistance at the your local DHHS District Office

You may be eligible for child care scholarships if your household income falls near or below these levels:

Family Size     Monthly Gross Income                     Annual Gross Income

2                          $3,065.00                                     $36,775.00

3                          $3,861.00                                     $46,325.00

4                          $4,657.00                                     $55,875.00

5                          $5,453.00                                     $65,425.00

6                          $6,248.00                                     $74,975.00

7                          $7,044.00                                     $84,525.00

8                          $7,840.00                                     $94,075.00

Who can receive reimbursement for a child care scholarship?

Only individuals or programs enrolled with DHHS/Child Development Bureau may receive payment from the State of NH for child care scholarships. DHHS enrolls three types of providers:

• Licensed providers (either family or center-based)
• Legally License-Exempt providers (either family or center-based)
• Family, Friend & Neighbors

They can apply to be an enrolled provider at their local DHHS District Office as well

Other financial assistance options

Some programs have a multiple child discount whereas if you have two or more children attending, they may give a certain percent discount on the 2nd and/or 3rd child. Ask the programs you call.

• Sliding Fee Scale is an option you can inquire about whereas, separate from the other financial assistance programs, a center based program may have a sliding fee scale.
• Head Start is a federally funded, comprehensive child development program that serves income-eligible families with children ages between the ages of 3 and 5. (See Link or info below)
• Child and Dependent Care Tax Credit: Helps families pay for child care for children under the age of 13, if the parents are working, or looking for work. Parents who are full-time students can also claim the credit. Qualifying care includes child care centers, family child care homes, and care provided by paid friends or relatives — as long as the relative is not a dependent of the taxpayer. The size of the credit depends on the number of children in care, your family income, and the amount you paid for child care during the tax year. There are limits on the credit given for one child, and two or more children.
• Earned Income Tax Credit: A refundable tax credit for low- and moderate-income families, particularly those with children. The EITC is based on family income and the number of children in the family. Both single- and two-parent families are entitled to the credit, as long as one parent is employed. A number of states have their own Earned Income Tax Credits; check with your state department of revenue for more information.
• In-Home Care or Nanny Tax: When you hire an in-home caregiver, you become an employer under federal law. You need to be aware of laws regarding taxes, verification of employment eligibility, and minimum wage. For information on these topics, contact the Department of Labor, the Internal Revenue Service, an accountant, a tax advisor, or an insurance aqent.

For more information on the tax credits you can call the IRS at 1-800-829-1040 or you can visit http://www.irs.gov.

For More Information: Contact Your local CCR&R