PARENT RESOURCE · APRIL 2026

Childcare Assistance in Tennessee — What Dyer County Families Need to Know

TDHS subsidies, Head Start, and tax credits that can make daycare affordable for working families

Childcare costs are a real burden for working families across Tennessee. In Dyer County — where median household income runs well below the state average — the gap between what daycare costs and what families can afford is felt every single month. Full-time infant care can run $600–$900 per month or more. For many working parents, that's close to an entire paycheck.

The good news: Tennessee has financial assistance programs designed exactly for this situation. If you haven't explored them, you may be leaving hundreds of dollars a month on the table. Here's a breakdown of the assistance options for Dyer County families, how to apply, and what to expect.

What Is the TDHS Child Care Certificate Program (CCCP)?

The Tennessee Child Care Certificate Program (CCCP), administered by the Tennessee Department of Human Services (TDHS), is the state's primary childcare subsidy. It works like a voucher: qualifying families receive a certificate that pays for all or part of their childcare costs at any participating licensed provider.

The program is funded through a combination of federal Child Care and Development Fund (CCDF) dollars and state matching funds. It's designed for working families, students, and parents in job training who need reliable childcare but can't cover the full cost out of pocket. A sliding-scale co-pay is required based on your household income — the certificate covers the remainder up to the maximum reimbursement rate for your county.

Who Qualifies for Tennessee Childcare Assistance?

Eligibility is based on three main factors:

• Income: Your household income must be at or below 85% of the state median income. The exact dollar threshold varies by household size and is updated periodically. A family of three earning around $50,000/year or less is typically in range — contact TDHS for your specific situation.
• Activity: You must be working, enrolled in school or job training, or participating in an approved activity through TDHS. Both parents in a two-parent household must generally be engaged in qualifying activities.
• Residency & citizenship: You must be a Tennessee resident, and your child must be a U.S. citizen or qualified alien under age 13.

Even if you've been denied in the past, eligibility guidelines change. It's worth re-checking if your household circumstances have changed or if it's been more than a year since your last application.

How to Apply in Dyer County

There are three ways to apply:

1. Online: Visit tn.gov/humanservices and apply through the TDHS online portal — typically the fastest route.
2. By phone: Call the statewide TDHS helpline to speak with a caseworker and get guidance specific to your situation.
3. In person: Visit the Dyer County TDHS office in Dyersburg. Bring all your documentation — they can often process your paperwork the same day.

Documents you'll need:

• Proof of identity (driver's license or state ID)
• Child's birth certificate and Social Security card
• Proof of income (recent pay stubs, most recent tax return, or employer letter)
• Proof of Tennessee residency (utility bill, lease, or mortgage statement)
• Verification of employment, school enrollment, or training program
• Your chosen childcare provider's license number (ask the provider — Smarty Tots Too can give you ours)

Processing times vary. If you need care by a specific date, apply at least 4–6 weeks early. Once approved, your certificate can typically begin within a few weeks of the approval date.

Does Smarty Tots Too Accept TDHS Certificates?

Yes. Smarty Tots Too is a licensed childcare facility in Newbern, TN — families with an approved TDHS certificate can apply it toward care with us. Our doors are open Monday through Friday, 6:00 AM – 5:30 PM, and we serve infants (6 weeks+), toddlers, and preschool-age children.

We're conveniently located for families from Dyersburg, Trenton, Halls, and across Dyer County. If you're applying or have already been approved, call (731) 627-4900 to ask about current openings and walk through enrollment. We'll handle the TDHS paperwork coordination with you.

Other Financial Assistance Programs Worth Knowing

Head Start & Early Head Start

For families whose income falls at or below the federal poverty level, Head Start and Early Head Start offer free early childhood education and childcare for children birth through age 5. Slots are limited and often have waitlists, so apply as early as possible. In West Tennessee, these programs are administered by the West Tennessee Human Resource Agency (WTHRA). Contact them directly to check enrollment availability and eligibility for Dyer County families.

Federal Child and Dependent Care Tax Credit

Even if you don't qualify for state subsidies, you may be eligible for the federal Child and Dependent Care Tax Credit. This credit covers up to 35% of qualifying childcare expenses (up to $3,000 for one child, $6,000 for two or more). To claim it, your child must be under age 13 and the care must be so you — and your spouse, if filing jointly — can work or look for work. This credit is available regardless of income, though the percentage decreases at higher income levels.

Dependent Care FSA (If Your Employer Offers One)

If your employer offers a Dependent Care Flexible Spending Account (FSA), you can set aside up to $5,000 pre-tax per year for childcare expenses. This effectively reduces your taxable income, which can save $500–$1,500+ per year depending on your tax bracket. Check with your HR department during open enrollment — if it's available, take it. Note that you can't double-dip: the same dollars can't apply to both the FSA and the dependent care tax credit.

Tennessee Vocational Rehabilitation (TVR)

If you or your partner has a documented disability and is pursuing employment, the Tennessee Department of Human Services' Vocational Rehabilitation program may cover childcare costs as part of an approved rehabilitation plan. This is a lesser-known program but one worth exploring for qualifying families.

Stacking Programs: Getting the Most Coverage

You can often combine programs. For example: if you receive a TDHS CCCP subsidy that covers most of your daycare cost, the remaining co-pay may still qualify for the federal Child and Dependent Care Tax Credit. Or if your employer offers a Dependent Care FSA, you can use it alongside a partial TDHS subsidy. Talk to a tax professional or your TDHS caseworker about what can be combined in your specific situation.

Frequently Asked Questions

Related: How to Choose a Daycare in Tennessee · When Can My Baby Start Daycare? · Infant Care in Newbern, TN · Preschool Newbern TN · Daycares Near Dyersburg, TN