UMB Child Care Grant

Overview

The University of Maryland, Baltimore (UMB) Child Care Grant Program is available to assist working parents at UMB. The taxable, need-based grant will help eligible employees pay for qualifying, work-related child care.

Qualifying Child Care Providers

Qualifying child care providers are limited to licensed or unlicensed child care providers that will attest in writing in the form of a signed receipt that they have received compensation to provide child care each month.   

The care may be provided by a relative or non-relative but cannot be provided by your child under the age of 19 (tax dependent or not), the child's parent, or another tax dependent who is paid by you for the child care. Other restrictions, as identified by the IRS, may apply.

Amount of Financial Assistance
  • The total funds allocated, percentages, and income levels are set by the University each fiscal plan year and may vary from year to year based on funding availability.
  • The UMB Child Care Grant amount for employees working less than full time will be determined based on 1.0 FTE but prorated based on actual FTE.
  • A committee with campus representation will determine who will receive the grant. The amount of the grant would be confirmed based on the available funding and qualifying participant’s need.
  • The grant award recipients will be notified that their application has been accepted or declined (reason provided) by the end of the month preceding the first grant payment. If the application has been accepted, the notification will indicate the amount of the monthly grant, the period over which it will be paid, and the expected amount of additional taxable income.
  • If the child is removed from qualified child care resulting in an overpayment of the UMB Child Care grant or if an overpayment is made to the employee by UMB for any other reason, the overpayment will be recouped by the University via payroll deduction from a future paycheck. Employees must agree to the recapture of overpayments via payroll deduction on the enrollment form, as this is a condition of the grant.
  • The amount of the UMB Child Care Grant may not exceed the employee’s child care expense.
Application Process 
  1. The deadline to enroll in the UMB Child Care Grant Program for each fiscal year will be announced before the application period opens. If the application is accepted, an acceptance letter will be sent to the recipient indicating the amount of the grant and the beginning and end date for grant payments. (The amount of the grant will be spread across the months remaining in the current fiscal plan year).
  2. Application forms are available through the link at the end of this page. A new application must be submitted for each year you wish to be considered for the benefit.
  3. Incomplete forms will be rejected.
  4. Forms received after the deadline will be rejected.
  5. HR will validate eligibility and ensure all required documentation is attached, including the employee’s most recent IRS Form 1040 proving eligible household adjusted gross income and dependent relationship. If the child is claimed as a dependent by another, additional proof of your dependent relationship is required (i.e., birth certificate).
  6. You must indicate if you are currently receiving child care assistance from other sources. This may result in a reduction of the UMB Child Care Grant as the grant amount is limited to the total unreimbursed child care expenses. 
Monthly Submission Process
  1. Employees whose applications have been approved must submit a Monthly Child Care Grant Program Expense Filing by the first Friday of the following month along with a copy of child care payment receipts for the period, and proof of receipt of any other child care assistance benefits that may have been received that period. The purpose of the attestation is to ensure the employee paid for child care expenses during the filing period. It is not a reimbursement request.
  2. Monthly Child Care Grant Program Expense Filings must be submitted through the automated process by the first Friday of the following month in which the expense is incurred.
  3. The grant payments will be included in the second paycheck each month. This payment is contingent upon you having paid for child care for that month. Example: The amount received in December is based on you having paid for child care that you incurred in December. It is not based on when the recipient actually paid for the care.
  4. There may be exceptions to the pay schedule deadlines due to the year-end December deadlines. For accurate year-end processing, the deadlines will be adjusted to ensure the awarded grant amount has been paid to each participant and will be communicated to the participants.
  5. Late monthly expense filings may result in the termination of the employee’s UMB Child Care Grant benefits.
  6. UMB is advancing the payments based on the expectation that your monthly expense filing is done on a timely basis. If receipts are not submitted with the monthly expense filing, the advanced payment may be deducted from the next month’s grant payment.
Tax and Other Liability Issues

The Child Care Grant is considered taxable income to the employee. Taxes will be withheld from the paychecks in which the grant payments are received.

This information should not be understood to be tax advice. Professional tax advice to determine the impact of the UMB Child Care Grant on personal tax liability should be sought by the employee.  

NOTE: It is the responsibility of the employee to select a qualified child care provider, including any screenings or background checks.

 

AM I ELIGIBLE?

Regular staff, regular faculty, and postdoctoral fellows (on payroll) working 50 percent FTE or more are eligible to apply for the UMB Child Care Grant.

Eligibility is dependent on your Adjusted Gross Income (AGI) and children under age six (6) that you have in child care. If you have a spouse he or she must be employed or enrolled in school at least 15 hours per week, be actively looking for work, or have documentation that a disabling condition prevents full-time caregiving, to qualify for this program.

In addition, these eligible employees must have bona fide work-related (child care required during work time) unreimbursed child care costs in excess of the UMB Child Care Grant, and they must meet the need-based criteria as defined for each tier (see Appendix A). Employees who add a dependent (i.e., newborn) during the plan year are eligible to apply for the next fiscal year’s grant. An employee who participates in a Dependent Care Flexible Spending Account may also participate in the UMB Child Care Grant Pilot Program because this program is an after-tax plan.

QUALIFYING DEPENDENTS

Qualifying dependents include all children who are under age 6 or are still in preschool. Human Resources (HR) will validate qualified dependent(s) based on the employee’s most recent IRS Form 1040. If the child is claimed as a dependent by another, proof of your dependent relationship is required (i.e., birth certificate). Please contact HR Benefits for more information.

WHAT ARE ELIGIBLE EXPENSES?

Eligible expenses include paid child care provided during scheduled work or school-related hours. It must be for care during the parents’ work hours or school schedule. Examples include:

  • Licensed day care centers and nursery schools;
  • Family child care homes 
  • Individual caregivers i.e. a neighbor, friend, or relative.

WHAT EXPENSES ARE NOT ELIGIBLE?

The following expenses do not qualify for the Childcare Grant:

  • Paid kindergarten;
  • Before or after-care for children enrolled in kindergarten;
  • Care during non-work or non-school related hours;
  • Supplies, medical bills, or costs that are not for caregiving; and
  • Tuition to hold a spot at a center.

If you have a spouse or legal partner, he or she must be employed or actively looking for work, enrolled in school, or have documentation that a disabling condition prevents full-time caregiving, to qualify for this program

HOW DO I FIND MY ADJUSTED GROSS INCOME (AGI)?

Your federal income tax return indicates your AGI. It is on line 11 if you filed a Form 1040 or 1040-SR.

WHAT TAX DOCUMENTS DO I NEED TO PROVIDE?

To verify family income, you must show documentation of your annual adjusted gross income. If you have a spouse or domestic partner, their income must be included. Submit a completed, signed (or e-filed) copy of your most recent US federal income tax return.

  • If you and your spouse were married filing separately, BOTH tax forms are required.
  • If you filed as Head of Household and have a spouse or domestic partner living in your home who also contributes to household or child care expenses, BOTH tax forms are required.

If you do not have a completed US tax form, you may submit alternative documentation. Documentation is required for both you and your spouse or domestic partner, unless you are single or divorced. If you have additional questions about alternate documentation, please contact (410) 706-2616. Accepted alternative income documentation includes:

  • A letter from your supervisor, sponsoring organization, or national government stating your annual income. It must be on letterhead, be signed, and have legible contact information in case we need to verify income. In our experience, sponsoring organizations are happy to provide this type of letter.
  • A W-2 or other annual income statement.
  • If your spouse/domestic partner is enrolled in school, then proof of enrollment for at least 15 hours per week, as well as stipend or income statement if any.

WHAT IF I AM NOT 100% FTE?

If you are not working 100% then the grant will be awarded to you pro-rated based on your current FTE status.

For example: If you are currently working 80% - you will receive 80% of the grant in which you would be awarded based on your AGI.

Appendix A: UMB Child Care Grant Chart Based on Household income
TierHousehold IncomeMaximum Amount of Total Annual GrantNumber of Grants Awarded 
I < $60,000 $5,000 40  
II Between $60,000 and $70,000 $4,000 20  
III Between $70,001 and $80,000 $3,000 20  
IV Between $80,001 and $90,000 $2,000 20  
V Between $90,001 and $100,000 $1,000 20  

*Application is open through May 29th 2022 for the FY2023 Fiscal Year Grant