Families bear the majority of the burden for child care costs. While some public funding is available for child care, the incomplete patchwork of support often does not provide enough assistance for families, who may opt to place their child in an informal or unlicensed child care setting due to the high cost of high-quality care.
This section details the various sources of child care funding, including families, federal funding, income tax credits, and other sources.
Parents and businesses can take advantage of tax credits for supporting child care, including the Earned Income Tax Credit, the Child Tax Credit, the Child and Dependent Care Tax Credit, and Dependent Care Assistance Programs. The amount of benefits available varies by state and the family’s income.
Recently, President Barack Obama proposed a new plan to help families afford child care, which includes a significant increase to the Child Care Tax Credit. To read more about the plan, click here: BREAKING: President Obama Announces Landmark Child Care Proposal