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January 26, 2021
Question

Do I need to pay tax on NJ Emergency Child Care Assistance Program?

  • January 26, 2021
  • 1 reply
  • 0 views

During the Pandemic NJ made direct "subsidy" payments to daycares for essential workers (regardless of our income) for a 2 or 3 months.   The website is here: https://www.childcarenj.gov/Emergency but most information is now down.  A bunch of our information was entered into a NJ website to get this with no mention of taxes.  I have yet to receive any state form or 1099 from this event, or any indication that it has to be claimed.

 

Do I need to declare this as income to be taxed?

    1 reply

    AmyC
    Employee
    January 26, 2021

    No. Generally, a subsidy payment is not taxable. Pub 17 does not show the NJ subsidy as income. 

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