So it will cost you the same to hire a helper as you make from this extra kid? Exactly?

If that's the case I would hire a helper for a number of reasons. Help when you want to pampering your own little one, help when you need to go to drive Apts, help when you were up all night. PLUS I think you come out ahead on the tax end, I could be wrong but I'm sure someone else knows that piece.

If it costs more, I might still consider the help in the transition phase with the baby.

If you absolutely cannot do it, I would tell them just what you said. You intended to keep them with a variances but since you can not get one you have to terminate care. A month notice should help them find alternate care.

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