What are the tax implications for participation in the program?

The tax laws regarding childcare subsidies are complicated. You should be aware that there could be tax consequences to receiving childcare subsidy assistance greater than $2,500 per year (if married, filing separately) or $5,000 per year (if filing as a married couple, single, or head of household). Also, the assistance that you receive for a child who does not meet the Internal Revenue Service’s definition of a dependent could be treated as taxable income. We encourage each participant to consult with your own personal tax advisor if you have questions, concerns, or if you need help or advice with your own personal tax situation.