With price tags like this, parents may consider alternatives to traditional childcare. Working from home is one option. It’s definitely a growing trend, with nearly 43 percent of all employees now working remotely. However, it still may be necessary to obtain some sort of childcare, depending on the demands of the job. Hiring a part-time caregiver or local teen may be a good option in this situation.
It also may be wise to utilize tax-advantaged accounts, like a Dependent Care FSA, which allows you to contribute pre-taxed dollars to an account earmarked for eligible childcare costs. Eligible costs include preschool, day camp, even care for dependent adults.
The Child and Dependent Tax Credit is another great way to take the sting out of growing childcare costs since the amount you can claim is regardless of your income and it directly reduces your tax bill, dollar-for-dollar.
Other options to consider are nanny shares with other parents or friends with children, or even utilizing the onsite daycare at your workplace. Many onsite daycares allow you to pay fees pre-tax, which can also save you money.
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