Author Topic: Childcare and universal pre k  (Read 871 times)

boarder42

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Childcare and universal pre k
« on: October 29, 2021, 09:30:21 AM »
Has anyone found a comprehensive analysis of how these are currently being implemented in the build back better bill released yesterday. I can't seem to find anything written about it and the bills wording is too complicated to understand. Really just interested in knowing income caps and if you need some amount of earned income to qualify. Basically we're going to be retired with 2 young kids in prek and daycare. Trying to see what I need to do to get these credits as they're very valuable.

lhamo

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Re: Childcare and universal pre k
« Reply #1 on: October 29, 2021, 12:21:44 PM »
This overview is from back in September, but most likely the final parameters will be similar -- looks like the plan is to use State Median Income as the cutoff for eligibility:

https://www.ffyf.org/faq-on-the-child-care-and-preschool-provisions-in-the-build-back-better-act/

Just noticed further down that one amendment added an asset test of 1 million. But often that excludes primary residence and retirement accounts. 

Also requires one working parent/caregiver.
« Last Edit: October 29, 2021, 12:32:03 PM by lhamo »

jpdx

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Re: Childcare and universal pre k
« Reply #2 on: October 30, 2021, 01:59:11 AM »
From the look of this announcement from the White House, there appear to be two components. The first one, free preschool, is detailed in the post above. The other, affordable child care, is explained here:

Quote
The Build Back Better framework will ensure that the vast majority of working American families of four earning less than $300,000 per year will pay no more than 7 percent of their income on child care for children under 6. Parents who are working, looking for work, participating in an education or training program, and who are making under 2.5 times their states median income will receive support to cover the cost of quality care based on a sliding scale, capped at 7% of their income.

I'm not sure how this interacts with the existing Child and Dependent Care Credit. Maybe it replaces it? The devil is in the details, and I'm hungry for details!

 

Wow, a phone plan for fifteen bucks!