Remember to file for ‘Child Care Credits’

With economic indicators pointing increasingly to hard times ahead for American families and the reality of a nationwide recession becoming ever greater, Mayor Michael Bloomberg announced a new public service campaign to promote New York City’s Child Care Tax Credits.
These credits, which are an integral part of the Mayor’s Center for Economic Opportunity, will assist low-income families (earning $30,000 or less annually) with child-care costs for children under the age of four.
“All too often, paying for costly child care can be one of the biggest obstacles to fulltime employment for women,” said Mayor Bloomberg.
“Last year, our administration worked with Governor Spitzer and the State Assembly and Senate to enact the new Child Care Tax Credit for low income families as part of our efforts to reduce poverty in our city. Making childcare more affordable is key to helping women and parents succeed in the workplace.”
The mayor’s office says that an estimated 49,000 city families qualify to receive a city credit, and that the city credits can also be added to existing state and federal child-care tax credits.
The $42 million price tag for the tax credit program is funded by the Mayor’s Innovation Fund, which is managed by the Center for Economic Opportunity.
“Finding innovative ways to tackle poverty has been at the center of our administration and we will evaluate the success of the tax credit and the other CEO initiatives to see what works and what doesn’t,” said Center for Economic Opportunity Executive Director Veronica White.
“The Child Care Tax Credit uniquely benefits working mothers. Our campaign to raise awareness of the tax credit comes before the end of tax season, a critical time while working mothers still have the time to file for the credit,” said White.
The expenses covered by the credit include out of pocket costs for child care and related household services. According to the Mayor’s office, a family with a gross income of $30,000 or less is eligible for combined state, federal, and city credits of $6,143, of which $1,733 is covered under the City Child Care Tax Credit.
New Yorkers interested in information on the Child Care Tax Credit can call 3-1-1 or visit www.nyc.gov where they can also find information on free or very low cost tax preparation sites.