Thursday, April 9, 2015

Preschool Expenses – Are They Tax-Deductible?

At tax time many parents are preparing their forms for 2014.  However, you may be one of many considering the cost of enrolling your child in a preschool school that is Montessori-based.  Once you have settled on the lifetime advantages offered by an authentic Montessori school for your child’s education here is a way to make it more affordable.

There is a wonderful tax benefit called the Child and Dependent Care Credit that as a parent you may definitely qualify for if you met certain IRS specified requirements. 

First Step

The first step toward qualification is that a child attending preschool must be a qualifying child. This means your child must be your dependent on your taxes and secondly, your filing status should be married, single, head of household, or even qualifying widow(er) with a dependent child.

Qualifying Conditions

The dependent care credit is available for your child’s preschool expenses if you have been looking for work or are employed.  Stay-at-home parents are not eligible.  If both you and your spouse file jointly both of you should have earned income in order to take the credit.  However there is one caveat to this rule. If either of you were disabled or were a full-time student and could not take care of the child, then you may be eligible to claim the credit.

Preschool private school tax deductible vs. credit:

According to IRS regulations you cannot directly deduct the cost of your child’s private preschool tuition and related expenses; however you could qualify for the child and dependent care credit. The credit does have certain monetary limitations.  There is a $3,000 limit for one qualifying child and a $6,000 limit for two or more qualifying children.

Qualifying Income Guidelines:

In order to determine whether your income qualifies for the tax credits obtain IRS Form 2441 Child and Dependent Care Expenses.  If you individually or jointly earn less than $15,000 annually then you are allowed to claim 35 percent of the allowable expenses for preschool. Once you reach $43,000 you can only take 20 percent of the allowable expenses.

Get Started:


Take the opportunity to schedule a tour of the Day Star Montessori Children's Learning Center and get your child off to the best educational opportunity available to experience the thrill of intellectual, creative, and social pursuits in learning.

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