Where do I deduct my daughters enrichment dance classes?

[Carl · Accepted solution]

The only deductible education expenses are for higher education that leads to a credential or degree. Dance classes would not be deductible. But they could be claimed as a child care expense if certain conditions are met.

[Coleen3]

It depends what what category it falls under.

Educational Enrichment

According to the Internal Revenue Service, costs associated with educational enrichment programs are not tax-deductible unless several criteria are met. The children participating in the programs must be under the age of 13; the children must be enrolled in the program during hours when the custodial parent is looking for work or is working; and the facility conducting the enrichment program must be a licensed and accredited educational facility. This would be DAYCARE.

Nonprofit Enrichment Programs

Youth enrichment programs that are conducted by a nonprofit organization may be tax-deductible if payment is made to the nonprofit organization itself and not to an individual in the organization. For example, under normal circumstances, a ballet class offered at a dance studio would not be considered a tax-deductible expense; however, a ballet class offered by a nonprofit theater company may be considered deductible if the payment is made to the nonprofit in the form of a gift. In this manner, the cost of the enrichment activity is deductible if it is classified as a donation to a nonprofit organization.

Religion-Based Enrichment Programs

Much like nonprofit-based enrichment programs, church-based youth enrichment programs may also be considered tax-deductible if payment is made in the form of a church contribution. Examples include youth groups, mission trips, music and choral groups and camps.

Other Considerations

To be eligible for allowable deductions related to kids' enrichment activities through a nonprofit organization, a parent must ensure the organization meets the criteria outlined by the IRS. This typically means an organization must have 501(c)(3) status. In deducting enrichment activities related to a religious organization, receipts must be maintained and the organization must be a recognized and accredited religious organization. To deduct the cost of educational enrichment activities incurred during the course of a parent’s work hours, a parent must follow the same criteria outlined for the deduction of child-care-related expenses. Deduction percentages are linked to a parent’s salary and the program must be conducted as part of a child-care or day care program.

https://pocketsense.com/tax-writeoff-kids-enrichment-activities-12097532.html