Paying for Care
Financial aid to help families pay for child care.
The cost of child care depends on your child’s age, type of program, and program’s location. There are financial aid programs that may help you pay for child care in Minnesota and several tax credits and deductions on your income tax that can help make care more affordable.
You can call 888.291.9811 for help or you can use Bridge to Benefit’s free financial aid screening tool to see if you might be eligible.
Financial Aid Programs
Who
You may be eligible to receive CCAP benefits if:
- You have a low income. This includes families currently or recently in the Minnesota Family Investment Program (MFIP) and those who have never received cash assistance.
- You have children ages 12 and younger or children with special needs who are ages 14 and younger that need child care.
- You need help paying for child care to work, look for work, or attend school or training.
What
This program pays a portion of your child care costs to the your child care provider. Families must use a legal provider. Families may have to pay a copayment based on their income and number of people in their family. There may be a waiting list for assistance in some counties for families that haven’t recently received cash assistance.
How
You can apply for child care assistance at your tribal or county human services office. Once you apply for CCAP, a child care worker will determine your eligibility and help you understand the program.
Who
Families meeting income eligibility requirements with a child between the ages of 0 and 4 on September 1 of the current school year who choose an eligible child care program (a program participating in Parent Aware).
What
Scholarships help families afford high-quality child care and early education programs. At this time, maximum scholarship award amounts vary based on the child’s age, program type, county where the program is located, and Parent Aware participation status. View the Early Learning scholarships Maximum Award Amounts and Early Learning Scholarships Maximum Registration Fees to learn more. The scholarship cap may be subject to change.
How
For more information and to apply online, visit the Early Learning Scholarships Hub. For questions, call Parent Aware at 888.291.9811 or contact your local scholarship administrator.
Who
Students with low incomes who have children under age 12 in child care (or age 14 for special needs children) while they attend postsecondary classes.
What
Grants for part-time or full-time student parents continuing their education after high school.
How
Complete the Free Application for Federal Student Aid (FAFSA) and a separate application for this program from your college’s financial aid office. For more information, visit the Minnesota Office of Higher Education website.
Who
Authorized active duty personnel of all military branches that do not have access to an on-base child care provider.
What
Eligible personnel may receive assistance in locating, selecting, and offsetting the cost of full-time or part-time civilian child care.
How
Visit the Military Child Care website to learn more about the assistance available and the eligibility requirements.
Tax Relief Plans and Credits
Who
Parents whose employers offer a Dependent Care Assistance Plan. This plan is sometimes called a Flexible Spending Account or a Pre-Tax Dollars Account.
What
Employers may choose to set aside up to $5,000 annually from employee paychecks to help pay for child care. That amount is not subject to income tax. Employees must provide documentation of child care expenses.
How
You can ask your employer if they offer a Dependent Care Assistance Plan and how to enroll.
Who
Families who pay child care expenses for children under age 13 and qualify for the credit. Even if you don’t pay any taxes, you may qualify for a refund of the state credit, but you must file tax returns.
What
The Child and Dependent Care Credit is both a federal and state credit that is available if filers paid for someone to care for their child or other household services. The amount of the credit depends on how much you earn. The care or services must be needed for you to work or look for work.
How
You can apply for tax credits on your annual Minnesota and Federal tax returns. The credits reduce the amount of tax owed. The Minnesota credit may also increase the amount of a refund. For more information, visit the IRS Child and Dependent Care Credit page and the Minnesota Department of Revenue’s Child Care and Dependent Care Credit page .
Who
Families with qualifying children under age 17 and incomes below the thresholds who file state and federal tax returns.
What
The Child Tax Credit helps parents offset any costs associated with raising a child. The federal credit is “nonrefundable,” meaning if the value of the credit exceeds the amount owed in taxes, any balance is not paid to the family. The state credit is “refundable” meaning that you can receive it even if you do not owe tax.
How
You can apply for tax credits on your annual Minnesota and Federal tax returns. For more information on qualifying, visit the IRS Child Tax Credit page and the Minnesota Department of Revenue Child Tax Credit page.
Who
Families that have a low income and who file Minnesota and Federal tax returns. Even if you don’t pay any taxes, you may qualify, but you must file tax returns.
What
The Earned Income Credit and Minnesota Working Family Credit reduce the amount of federal and state tax that you owe. You must meet certain eligibility requirements to claim the credit.
How
You can apply for tax credits on your annual Minnesota and Federal tax returns. For more information, visit the IRS Earned Income Credit page and the Minnesota Department of Revenue’s .