child care stabilization grant taxable

The remaining funds may be used for administering the subgrants, providing technical assistance and support for applying for and accessing these subgrants, publicizing the availability of these subgrants, carrying out activities to increase the supply of child care, and providing technical assistance to help child care providers meet certain policies. If a Lead Agency adopts this interpretation, it would be allowable (but not required) for a Lead Agency to use CCDF for child care services when children are completing remote, virtual, or online schoolwork or instruction while in child care. We remind Lead Agencies to develop emergency preparedness plans that contain guidelines for continuation of child care subsidies and child care services, which may include the provision of emergency and temporary child care services during a disaster, and temporary operating standards for child care after a disaster. A concrete slab in the backyard used for basketball, skating, etc.? ARP stabilization funds used for tribal construction or major renovation must be liquidated by September 30, 2023; there is no separate obligation deadline for funds used for construction or major renovation. Persons that require a reasonable modification based on language or disability should submit a request as early as possible to ensure the State has an opportunity to address the modification. No, a budget is not required as part of the application. In order to be eligible for an ARP Act stabilization subgrant, a child care provider must be open to provide child care services or temporarily closed due to public health, financial hardship, or other reasons relating to the COVID-19 public health emergency on the date of application. This could include physically separating checks or depositing the funds in different bank accounts. Emergency Responseincludes FAQs about temporary, short-term measures and existing flexibilities available to Lead Agencies under CCDF that may be taken during the current public health emergency in response to COVID-19. EEC will work with programs in determining what would be acceptable documentation to support the expending of grant funds and help programs determine how to start collecting this documentation as they use grant funds. Q: When you give a bonus to your staff, do you treat the deduction the same as payroll deductions? Q: How do I pay myself for the hours I work in the weekends or after work hours? What happens after a program submits an application? The Recertification section will contain the list of all applications including - Funding Month, Fund Distribution Status, Projected Amount, and Due Date. Therefore, providers participating in their ARP Act stabilization subgrant programs may terminate an employee for cause during the subgrant period. Because Family Child Care (FCC) providers capacity changes with enrollment, all FCC sites will be calculated using a capacity of 10 slots, regardless of the actual capacity, for the purposes of the formula. No, tribes that are not already part of a consortium cannot pool their ARP Act stabilization funds to administer a single subgrant program. However, tribal lead agencies who do not currently operate under a consortium may coordinate a common framework such that each tribal lead agency establishes the same requirements and procedures for the stabilization grants. Example 3: Provider uses some of the grant to pay herself and some for business expenses. Tutoring or academic support services that are stand-alone services or delivered outside of child care settings/services are not an allowable use of CCDF. The Office of Child Development and Early Learning (OCDEL) made American Rescue Plan Act (ARPA) Stabilization Grants available to eligible child care providers. Q: Does the federal guidance for this grant require providers to gift any of it to parents? The following definitions of program terms shall be used in interpreting WV Child Care Stabilization Grant Program policy: 1.1.1. Programs will receive this funding by the end of August 2022. Are child care providers required to provide complete relief from copayments and tuition for families in their care while they are receiving an ARP Act stabilization subgrant? No other family income will be affected, meaning you wont pay higher taxes on any non-grant income. Below is an additional series of questions and answers about the Stabilization Grant. Q: If I use the grant for my IRA, can I deduct 100% of this on my taxes? NEW (Updated 2-23-22) I have a positive case of COVID-19 in my program, and I have applied for the COVID-19 Child Care Stabilization and Recovery Grants, now what? Are there other local resources or options for testing? The IRS has published information indicating that "receipt of a government grant by a business is generally not excluded from the business's gross income under the Federal Tax Code and therefore is taxable." 1099 forms were mailed to programs detailing the amount of C3 funding the program received in 2021. Lead agencies should notify a provider as soon as the decision to reverse the application is made and provide information on why it was reversed and an opportunity to appeal the decision. Can the grant funds be used to pay the director/provider? Get more information about KidKare. FMAP rates and state matching requirements are published on the GY 2020 state and territory CCDF allocation tables page. However, since every situation is unique and states may release additional requirements or restrictions, providers should always consult a tax professional to obtain advice specific to their own unique situation. English (US) Log in. Tribal lead agencies may use CCDF funds from more than one funding stream (i.e., Mandatory, Discretionary, Supplemental, or stabilization funds) to fund a construction or major renovation project, as indicted in their application for construction or major renovation (https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation). Eligibility and award amounts will be determined at the site level based on each sites licensed capacity and will consider the communitys SVI. 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 Lead agencies should balance the need to collect information necessary to ensure funds are being spent correctly and not overly burdening providers. How far back can a program go in paying these previous expenses? Absent a waiver, Lead Agencies must require these providers to meet health and safety requirements. The CARES Act and the CRRSA Act do not address use of funds for construction or renovation; accordingly, regular CCDF/CCDBG rules apply. Therefore, the applications must include a way for child care providers to certify they will meet these requirements. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. $3,500 income $3,500 expenses = $0 taxable income and $0 taxes owed. This session was presented during BUILD 2022 National Conference. How will I know if Im required to participate in the fiscal monitoring process? If a program closes temporarily during the 12-month grant period due to inactive status, will the program still be eligible for the grant during that month? a Are the grant funds taxable? 18. For example, lead agencies may provide stipends to child care providers to cover the cost of transportation to vaccine sites and paid time off to receive the vaccine and recover from any side effects. Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. There are only limited circumstances under which the Child Count can change. How will I receive the grant awards? Please do not include personal or contact information. The closure may be a school-wide closure or for off-days of a hybrid model (e.g., a combination of in-person, virtual, and/or off days.) Yes, Lead Agencies may pay full-time subsidy payment rates for school-age child care as long as the Lead Agency is not paying for time when a child is physically attending school and is not paying for any regular education services. Learn about provider eligibility for the COVID-19 vaccination. This enables Lead Agencies to have the flexibility to define in their CCDF Plan the criteria that the Lead Agency believes would best serve subsidy families, such as families affected by COVID-19 circumstances. This means you will pay some additional Social Security taxes, but it also means your higher profit will potentially increase your Social Security benefits. Applications submitted after March 30 will generally not be considered. No, tribal COVID-19 CCDF supplemental funds, like regular CCDF program funds, cannot be used to provide direct services for families who do not meet the tribes definition of Indian child or do not live within the tribes service area. In total, the program provided over $534 million . It would be reasonable, for instance, for Lead Agencies to prioritize services for, or even restrict eligibility to, families with children who are unable to attend school in person because of closures or health reasons over families with children who are able to attend school in person, but opt not to. All of the information and application process for the Child Care Strong program will be available here. Lead agency agreements with intermediaries must meet CCDF requirements at 45 CFR 98.11Visit disclaimer page and are subject to the same obligation and liquidation periods for the stabilization funds. The CARES Act and the CRRSA Act do not address the minimum 12-month eligibility period for essential workers; accordingly, regular CCDF/CCDBG rules apply. Top-requested sites to log in to services provided by the state. Grant reporting will be completed in the Professional Development (PD) Registry. Yes, Lead Agencies may enroll new providers to meet increased demand. Contact your state to get the answer. Sept. 1, 2021: The Office of Child Development and Early Learning (OCDEL) is making American Rescue Plan Act (ARPA) Stabilization Grants available to eligible child care providers. The Centers for Disease Control and Prevention (CDC) guidance suggests staggering drop-off and pick-up times and/or having a child care provider meet children outside of the facility when they arrive. Child care providers also may not involuntarily furlough employees employed on the date of submission of the application. This will be necessary to access the various supports offered through the Department. CCDF Lead Agencies have the option to interpret this provision (prohibiting funding of services during the regular school day) as applying only to services when a child is physically at schooland not when a child is in a child care setting. OCC encourages child care providers to provide relief from tuition and copayments, if financially possible, especially for low-income families. Lead agencies may also use other COVID relief funds (CARES Act, CRRSA ActVisit disclaimer page, and ARP Act supplemental) and regular CCDF funds to also help providers become CCDF-eligible. While the guidance in this response focuses on how ARP stabilization funds impact the eligibility of child care workers for federal benefit programs, the same guidance would apply to funding from regular CCDF funds and supplemental funds provided under the CARES Act, CRRSA Act, and ARP Act, when the funds are used as stabilization grants or similar provider grants/stipends. Take the money! How to Use Child Care Stabilization Grant Funding to Support Your Home-Based Setting Tax Resources from Home Grown The 2022 tax season is here! Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. The application must justify that the construction/major renovation activity is for the purpose of preventing, preparing for, and responding to, COVID 19. State tax rules apply. Grant navigators are available to assist child care providers with grant applications and other resources. The following applications are available to eligible child care providers to apply for relief funds. Here is a link to the U.S. Small Business Administrations webpage on the Paycheck Protection Program (PPP). Return to Top Application Process To learn more about how to apply, please view our Application Guide or Application Walk Through Video on our website available in English, Spanish, and Vietnamese. A: You can pay yourself as often and as much as you want. The lead agency may use the ARP Act supplemental CCDF Discretionary funds to reduce or waive copayments for a subpopulation of families eligible to receive CCDF. Lead agencies may choose to contract with intermediaries, such as counties, child care resource and referral agencies, and staffed family child care networks, to manage the administration of the ARP Act stabilization subgrants. Funds will be available to child care providers in the form of: No, tribal lead agencies are limited to providing stabilization subgrants to providers within their service area.

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