@Angelicabreanne wrote:
So even if the parent works it doesn’t count toward the dependent care credit since it’s not in a physical building? That’s unfortunate because it’s just as expensive if not more than brick and mortar preschools in my area.
The credit is for child care costs that you incur to pay for someone else to care for your child so you can work. Not for tuition. You can claim the credit for expenses paid in your home to care for your child in your home, even if you also work at home.
However, the primary purpose must be care, not education. This is what the IRS says.
Expenses are for the care of a qualifying person while you worked or looked for work only if their main purpose is for the person's well-being and protection. It doesn't include the cost of food, lodging, education, clothing, or entertainment...
You can include amounts paid for items other than the care of your child (such as food and schooling) only if the items are incidental to the care of the child and can't be separated from the total cost.
You defined this as preschool tuition in your home. I've had experience with more than one pre-kindergartner, and I don't think you could convince the IRS that your virtual preschool was so immersive that it provided your child with physical protection and well-being to the extent that your child required no supervision from you so that you could go to a home office and work a job.
