RoxanneIf you think college is expensive, know this: Child care can cost even more. According to a 2020 Care.com study, 55 percent of households spend over $10,000 per year on child care. That’s more than the average yearly cost of in-state college tuition. And if you’re a single mother, it’s as if the burden on your bank account is doubled since you may be the sole person responsible for paying.
That’s the bad news about child care costs. Here’s the good news: There are plenty of subsidies to make these costs more manageable, such as these:
Child Care Subsidies From the State
The federal government gives funds to states so they can help parents pay for child care through their own programs. Although each state differs, you’ll typically have to make below a certain income to qualify, and your kids will have to be under a certain age if they do not have a disability.
Some state subsidies will limit you to a daycare center, while others will allow for home-based care. You can get such assistance through the Child Care and Development Block Grant (CCDBG). Again, it varies by state, so search online for child care subsidies plus your state. You’ll likely have to deal with a social agency or health department to get the funding.
Military Child Care
If you’re in the military, you could be eligible for a child care subsidy from the Department of Defense. Each branch/agency has its requirements, which you can learn more about by going here.
Tax Child Care Subsidies
The Child and Dependent Care Tax Credit lets you itemize a maximum of $8,000 in child care costs per child. It caps out at $16,000 total. To take advantage of this credit that will lower your tax burden, itemize your child care expenses on your tax return. Doing so should equal a tax savings of $1,600 per child.
The Child Tax Credit can also make it easier to pay for your child care. Once your child is born, you’re eligible for a credit of $3,600 per child under six years old. Kids up to 18 equal a $3,000 credit. You can learn more about this tax credit by clicking here.
If you’re barely making ends meet with your single mother’s income, the Earned Income Tax Credit (EITC) can also help make child care more affordable. The amount of money you’ll get from the EITC depends on your filing status and how many kids you have. To learn more, go here.
Child Care Subsidies From Your School
Trying to juggle work, kids, and university studies can be next to impossible as a single mom. But your school may help pay for child care to make those costs more manageable. They may even offer on-campus child care for added convenience. To see if your university offers child care assistance, contact them directly.
