Can Preschool Expenses Be Deducted from Your Taxes?
Many parents choose to send their child to preschool as a way to prepare them for kindergarten and beyond. But did you know that preschool can also be counted as a childcare expense for taxes? That’s right—if you’re paying for your child to attend preschool, you may be able to deduct those expenses from your taxes. Here’s everything you need to know about how preschool can help you save on your taxes.
How the IRS Defines Childcare
The first thing to understand is that the IRS considers anything that provides care for a child while the parent or guardian is at work to be “childcare.” This includes daycare, nannies, babysitters, and preschool programs. So, in that sense, yes— preschool can absolutely count as childcare for taxes.
The Child and Dependent Care Tax Credit
The Child and Dependent Care Tax Credit is a tax credit that is available to taxpayers who are paying for childcare so that they can work or look for work. This credit can be applied to a wide range of expenses, including tuition for preschool. To qualify, taxpayers must meet the following criteria:
- The expenses must be paid for the care of a qualifying person. A qualifying person is defined as a dependent child who is under the age of 13.
- The expenses must be paid so that the taxpayer can work or look for work.
- The expenses must be paid to a qualified care provider. A qualified care provider can be an individual or an organization, but they cannot be related to the taxpayer.
Taxpayers can claim up to $3,000 in expenses per dependent child, or $6,000 if they have two or more dependent children. The amount of the credit is based on the amount of income earned; those with higher incomes will receive a smaller credit than those with lower incomes. The IRS has a Child and Dependent Care Credit Worksheet to help you calculate your credit.
If you think you might be eligible for this tax credit, gather your receipts from Stepping Stones Child Care and bring them with you when you meet with your tax preparer.
How Does Preschool Count as Childcare?
For preschool to count as childcare for purposes of the Child and Dependent Care Tax Credit, the following must be true:
- The school must provide educational and development activities for children.
- The school must care for children on a regular basis throughout the year.
- The school cannot be run by the taxpayer or by someone who is related to the taxpayer.
So, as long as the preschool your child attends meets all the above criteria, you should be able to count those expenses towards your tax credit.
Contact Stepping Stones Child Care Today to Learn More!
We hope this article was helpful in understanding whether preschool expenses can be deducted from taxes! As always, consult with a qualified tax professional to ensure accuracy in filing your taxes. Contact Stepping Stones Child Care today at 281-298-5838 with any questions you may have about how to deduct your preschool expenses from your taxes.