Childcare Cost Woes...

[Mammabruski]

So my day care provider sprang on me today that she wants $180 more a month and almost nothing has changed! My little one isn't even an infant anymore... She's awesome and I love her and so do my kids, but come on! The only thing that is different is that my oldest DD is going to preschool for four days a week this year instead of two, (which will cost us another $120 extra per month, we did plan on that increase, but not the unexpected one). And her daughter goes to the exact same preschool at the exact same time so its not like she's going out of her way for my child.

The only "upside" is she is "willing" to let us claim the childcare on our taxes... but I don't think that compares to the monthly increase? Since I'm a teacher the increase will be about $1620 more a year give or take, and there's no way taxes can make up that amount, can they?!

Does anyone have any insight? Am I being unreasonable? Money just stresses me out so bad! Sigh.

[Terra]

I probably won't be much help but can certainly empathize with the childcare cost issue.
My DH and I make a dual combined income of >$30K a year [and that's with college degrees!]. Thankfully my 4.5 year old attends a special needs school and I do not have to pay. But I do have to pay childcare for my 3 year old. It's $124 a week. [or $248 out of a $450 check every two weeks!] As you can see doesn't leave us much money left at all for gas, food, etc!

Thankfully we do qualify for the childcare assistance but that takes time, there's a waiting list, so in the meantime I still have to pay full price.

By chance do you have a program like that and/or would qualify? You may look into other daycare options just to see if something is equal to what you're paying now [without the increase] or even a bit less expensive.

Not much help I know, but I do understand where you're coming from. Bless our teachers because [as least where I live] teachers are not paid near enough. I'm a paraprofessional at an elementary school so I make half the salary of what teacher's do. It's all very tough.

[DizneyRox]

"willing"? Is this some under the table payment?

WOW! If you can claim childcare, I would, if they are not reporting income, that's not your problem.

$180 a month seems a little steep for any increase, but I'm sure they didn't just pull a number out of thin air. Part of the decision should have involved how many people would walk with the price they are planning on charging. I'd start looking around, you can let them know or not, Both ways have their pros and cons. I tend to lay everything out on the table, but I'm also prepared to walk away when I do that.

[MNNHFLTX]

I'm not terribly knowledgeable about how this would affect taxes, but how can she "allow" you to claim the amount you pay her for childcare? You either have the expense or you don't, right? Unless she's been doing the childcare as under-the-table income?

It's been a long time since I've had to deal with childcare situations, but I can understand your frustration--it's hard to imagine that kind of increase all at once. You might want to start looking around at making other arrangements, if that is an option. If she loses you as a client that would speak louder than words.

[Mammabruski]

OP here...

We agreed to not claim her in the past so her family wouldn't lose their government benefits. She apparently checked into it further and us claiming her won't affect their benefits after all. And now she's using it as a bargaining chip. We don't qualify for any government benefits, which I guess is a good thing... I'd like to shop around, but I'd need someone to take my older DD to preschool, and I don't know if I can find anyone willing to do that. If she doesn't agree to some sort of compromise we may have to pull DD from preschool as we won't have the money, anyways. This is a tough situation and school starts in less than two weeks so I'd need to move fast. It also would be a shame to switch providers since my kids (and myself) really do love her. Sigh.

[Terra]

Such a tough thing! Please keep us updated!

[Ms. Mode]

When my DD was young, we found that the best thing was NOT to get to attached to the childcare giver...they didn't stick with it for long and we would be off searching again. We found a church that offered day care and pre-school so that both issues were taken care of at once. They were excellent with the children and our DD loved it. It was called "Kiddie College"

Good luck!

[floridamom]

I am sorry you are in this situation so close to the start of school. Are you able to determine if what you were paying for childcare was on par with what others in your area pay for similar services? Does she care for other children as well, and if so, what are they paying? I guess what I am getting at is whether the increase is fair or not. Maybe she would consider a "counter offer" of what you feel is more appropriate and/or comparable to your estimated tax savings from the childcare tax credit. I am not an accountant, but I believe that you can claim at least 20% of your childcare expenses to be applied as a credit. So if you spend $5,000 a year on childcare for two kids, you will save $1,000 on your taxes.

In the meantime, perhaps the preschool director could put you in touch with other parents in your area who might be able to take your DD to school. You could also let your provider know that you are looking at other options--if you keep it about the money and let her know that you would love to stay with her if you could afford it, then she shouldn't take it personally and you can always agree to her terms if you don't find anything else.

Good luck!

[princessgirls]

I don't know about claiming child care on your taxes. You have to provide a tax ID or SS#, and then your provider would also have to claim it as income.

Maybe she will meet you half way, obviously she needs some extra money coming in.

I have been so blessed with child care providers. I only used 3 friends from church, and they were always reliable. My girls are still going to one of them 2 days after camp this summer (they are 10 & 9 and I need them to be semi- supervised.)
I pay cash, it's not a lot now, and it's OK with me.
I can write off afterschool care for them for the days I work later.

You might want to try a daycare.
Good Luck.
Julie

[MississippiDisneyFreak]

If I am not mistaken there is a cap on how much you can claim toward taxes...I think I would check into other options...

[floridamom]

If I am not mistaken there is a cap on how much you can claim toward taxes...I think I would check into other options...

Yes, for 2010 the limit to use to calculate your credit was $3,000 per year for one child or $6,000 for two or more.

[Lizzy]

That's a steep increase for the level of care for the baby (not being an infant anymore) changing and for your preschooler to be there less days a week.

I have 3 children. In my experience, the Daycare costs go down each year the older the child gets, unless the Daycare as a whole decides on a tuition increase. It has NEVER been more than $10/week per child increase. It sounds to me like your childcare giver is trying to squeeze everything she can and justify it. I would walk. I would find an established daycare (either in home or preschool) that there is no question as to claiming on your taxes what is your right to claim.

My friend had an in home daycare that she also would provide transportation to and from the preschool and elementry schools. They are out there. But I wouldn't trust this situation any longer. If you bock at the price, how is she going to respond the next day twords your kids when you are not there?

Childcare is expensive enough, it doesn't have to increase that much for minor changes.

[Mammabruski]

OP again!

So I just got off the phone with our Daycare provider... I countered with $5 more per day as opposed to $10 (on preschool days). We also talked about transportation to and from preschool. Apparently she was only going to bring her daughter for four days because my daughter was going for four days. So we talked about only sending our girls to preschool for two days a week. FYI: Both of us agree that our preschool's value is in the social interaction... it's not that strong academically, and it's our only choice for our remote area.

Hopefully we can meet in the middle... the proposal will save us in preschool costs and only increase our monthly child care expenditure by $100. And we'd still be able to claim her!

What do you think? Hopefully this will all be settled soon...

[lighteningqueen]

I think if the government knew about this.. oh boy.That is cheating income to make money for her family to recieve food stamps, welfare checks etc. THIS is wrong.. While you and others are fattening their wallets with your hard earned pay.I would have reported day care a long time ago. I am guessing she is also getting free food for the daycare as well.. My daughter just opened a day care here in Texas.They raked that room over with a wide toothed comb. Had to pass all kinds of saftey rules.. She has a permit now todo this in her home.She can only have 6children including her own. So only 4 paying customers. She also will get assistance next month for food for each child.She has been told by others there is way more food per month than she will use. Others tell her they take it for their own family. This is also fraud of the system. If anything happens to your kids in there, heaven forbid..My daughter also had to take out a million dollar policy, if any of the kids should get hurt. She also had to get a tax ID. So sounds to me this woman is NOT legit in any way. My daughter charges 1oo.00 per week for each child. If she does not report this she would get shut down in a heartbeat.. She is an RN so why she quit good money over this I will never know.Plus monthly inspection. all for 1600.00 per month I will never know. I would quit this girl in a heart beat.If the kids get hurt, you will never see anything out of this woman for Insurance.

[DizneyRox]

This is a tough situation and school starts in less than two weeks so I'd need to move fast. It also would be a shame to switch providers since my kids (and myself) really do love her.

Yes, it's a shame this was sprung on you with such short notice. I suspect it was done that way on purpose. Your options are pretty limited right now.

Shame was a pretty good choice of words, there are others that apply as well...