 Stretching Your Child Care DollarChild care providers, like all business owners, must factor in the cost of staffing, facilities, utilities, insurance, food, learning materials and cleaning supplies when setting their rates.
It is difficult for many child care providers to break even financially as these operational expenses grow. Likewise, families find it difficult to pay for child care as rates increase to cover these costs.
Average child care costs in North Dakota are $124/week for a child 0 to 17 months, $121/week for a child 18 to 35 months and $118/week for a child 3 to 5 years old. These average rates can fluctuate due to local property costs and wage rates.
Child care is often a family's biggest expense after housing, food and taxes. The good news is that there are some benefits and tax credits that may help you stretch your child care dollar.
Child Care Flexible Spending Account - Money set aside in this payroll deduction account is exempt from federal, state and payroll taxes. Parents can set aside up to $5,000/year as long this amount does not exceed the income of the spouse who earns the least.
 Child and Dependent Care Credit - Individuals who pay for day care expenses for their children may be eligible for a federal tax credit of up to 35% of the cost of care. A child age12 or younger or a dependent adult of any age who can't care themself is eligible.
 Child Care Assistance Program helps eligible, low income families pay for child care while parents work, attend school or search for a job. Assistance is typically paid directly to the child care provider. Eligible providers must be at least 18 years old, and be licensed,
registered, self-declared or an approved relative.
 Earned Income Tax Credit (EITC) is a federal tax credit that helps low-income people who are working, especially those who are raising children. If you qualify, you will either get a larger refund (money given back to you) or pay less in federal taxes.
 Child Tax Credit is a tax credit that may be worth as much as $1,000 per qualifying child depending upon your income. Qualifying criteria is based on age, relationship, support, dependent, citizenship, and residence.
Discuss these options with your financial advisor or tax preparer to see if you qualify. | 
