Early Education & Childcare That Comes With Support

Options To Offset Tuition Costs

Early Education & Childcare That Comes With Support

Options To Offset Tuition Costs

Montessori Preschool & Child Care Center Serving Bloomington, Savage, Shakopee & Minneapolis, MN

Child Care Tax Credits, Subsidy Programs, & More

Your child’s care is one of your biggest priorities, and you work hard to make sure they are getting the very best start. There are options available to help you offset the cost of care, and we’ve made it easy to learn about these programs.

SEE WHAT OPTION WORKS FOR YOU:

A tax credit is even more valuable to families than a tax deduction! It’s a dollar-for-dollar reduction in the taxes you owe. Some credits are refundable—reducing taxes otherwise owed to zero and paying a refund. 

NEW Federal Tax Benefits:

The American Rescue Plan Act of 2021 enhanced the benefits of families with children and child care specifically. The details of the new benefits can be hard to understand, so we’re here to break it down. 

Under current federal law, eligible families can claim 2021 child care tax credits up to the following maximum amounts:

      $8,000 from the federal Child and Dependent Care Tax Credit (up to $4,000 for each of your first two children). For 2021, this is a refundable credit.

      $6,728 from the federal Earned Income Tax Credit.

      $3,600 per child under six (as of December 31, 2021) and $3,000 for children 17 or younger (as of December 31, 2021) from the federal Child Tax Credit (these amounts were permanently enacted into the law).

There are rules for these federal tax credits, so please speak to your tax advisor about how they apply to your family. In the meantime, this child care tax credits calculator is a quick tool for a broad estimate.

State Tax Benefits:

Each state offers different tax credits to offset the cost of child care. See what benefits might be available to you in Minnesota.

If your family needs help with tuition, there are state and local agencies to provide tuition subsidies. This map is a great starting point for finding the financial assistance resources available.

More and more employers add child care benefits to their employee compensation packages because it’s hard to do your job without reliable child care!

Talk with your employer or your HR department about whether they offer child care benefits and how to use them.

As part of our team, you may be eligible for other discounts or tuition credits. Talk with your HR manager about what’s currently available to you.

If you don’t see answers to your questions about easing the costs of child care, please ask us about additional resources. You can call or stop by for a chat during business hours.

How Old Is Your Child?

Infants

6 Wks - 16 Months

Toddlers

16 - 32 months

Preschool

33 months to 6 years

virtual preschool

K - 9 Years

Infants

6 Wks - 16 Months

Toddlers

16 - 32 months

Preschool

33 months to 6 years

Infants

6 Wks - 16 Months

Toddlers

16 - 32 months

Preschool

33 months to 6 years