Michigan offers several childcare subsidies and government programs to assist income-constrained families with the cost of child care.
The Michigan Child Development and Care (CDC) program is designed to support income-restrained families by providing supplemental childcare payments to assist families with the cost of child care. Subsidies are provided as direct payments to the childcare provider on behalf of the family, reducing the amount the family is required to pay out-of-pocket.
See the allowable reasons for childcare assistance CDC Program Requirements
Families can see if they’re eligible for low- or no-cost child care by using the calculator available the Great Start to Quality website or view the Income Eligibility Scale and Family Contribution to see if you qualify.
Apply for the CDC Program by visiting the MI Bridges website. Eligibility specialists will ask applicants questions about their child-support arrangements and provide access to a Navigator Partner for one-on-one assistance.
Find childcare providers in your area through the Great Start to Quality website that accepts CDC subsidies. Remind employees to start looking early as many centers have waitlists.
Contact your local DHHS County Office if you need help or have questions.
The federal government offers subsidies to members of the military and the Department of Defense. Eligibility is determined by each branch of service or agency.
Visit Child Care Aware of America for more information on eligible programs and assistance.
Head Start is a federally funded preschool program for 3- and 4-year-old children from eligible, low-income families.
Great Start Readiness Program (GSRP) is Michigan’s free PreK program for eligible 4-year-olds
Search for your nearest Head Start or GSRP program to find out if your family is eligible and to apply.
Employees can reduce their tax burden by claiming childcare expenses. The resources provided here are intended as informational tools only and are not a substitute for professional tax advice.
Families can qualify for a tax break using the Child and Dependent Care Tax Credit . With this tax credit, you are able to itemize up to $3,000 in childcare expenses per child ($6,000 maximum). Learn about eligibility requirements and how to claim this tax credit through the IRS website .
When you file your personal income tax return, use IRS Form 2441 to itemize up to $3,000 in child care expenses per child ($6,000 maximum), which brings about $600 per child ($1,200 maximum) in tax savings.
If you have more than one child and have access to a Dependent Care Flexible Spending Account (FSA), the rules are slightly different.
Families can’t use their FSA and Form 2441 for the same expenses. For example, if a family who has already set aside the maximum of $5,000 in their FSA can only claim $1,000 toward the Child and Dependent Care Tax Credit.
If you do have an FSA, you can use Form 2441 for the additional $1,000 in childcare expenses to save an additional $200.
The EITC is a tax credit available to low- to moderate-income wage earners. The credit can range from a few hundred to several thousand, depending upon how many children you have and what your filing status is.
Visit the IRS website to see if you qualify for EITC and how to file.
Michigan’s Great Start to Quality child care network is a resource to help families identify types and availability of child care in their community. Great Start to Quality allows families to search for all licensed programs in Michigan. You can search in the ways that are most important to you, whether it is by area, cost, or specific needs.
Upwards is a free online resource to locate childcare centers that accept drop-in and back up care in West Michigan.
This resource is provided exclusively to TalentFirst members & their employees as a membership benefit at no cost.