Child care tax credit expected to get boost
The President will make his annual State of the Union address Tuesday night where he will offer perspective on the state of our nation and propose legislation to congress. Some of the topics he’s expected to discuss range from education and the war on terror, to tax change proposals.
One of tax changes would make it easier for families to pocket more money from tax breaks for child care, potentially $3,000. Right now, the average family pockets $550 dollars in child care tax benefits, but it’s very difficult to obtain that money.
According to www.whitehouse.gov, President Obama wants to triple the maximum child care tax credit to $3,000 and make that money more accessible. Child care center owners say its something that could greatly help local parents.
Kiddie Kottage daycare owner and director, LeAnn Ervin says her classrooms haven’t been full for years, “We have seen a downfall in the attendance of childcare.” Ervin knows daycare is a luxury now for most parents. She says, “It’s still very hard for a lot of parents to have to pay for childcare.”
However, many working parents need daycare and childcare. Ervin knows the struggle many working parents have in trying to provide their child daycare, many times withdrawing them in an effort to save money, “There are a lot of struggling parents out there who struggle to pay their childcare.”
Certified Public Account, David Wyatt says this kind of tax break could benefit a wider array of people, “Under the proposed change, many more will be impacted in a more meaningful way.”
Because more money translates to more meaningful playtime, “If they’re not able to be in a childcare setting they’re missing out on the socialization of being able to play with other children and learn in that preschool environment,” says Ervin.
One of the key elements to this tax break is income level. Right now almost no families qualify for the full child care tax break currently, but under the proposal families with incomes up to $120,000 would also qualify which would include a lot of middle class families. However, only families with children under the age of 5 would reap the benefits.