Does preschool provided by a school district count for dependent child care tax credit?

[Bsch4477]

Yes, if the activity is for child care and not primarily for education purposes. 

[TomK2023]

Maybe.  Preschool provided by a school district does count for the Child and Dependent Care Tax Credit if you paid for this expense yourself.

According to IRS Publication 503, expenses for nursery school, preschool, or similar pre-kindergarten programs are considered expenses for care, even if they include some educational activities.

There are four  (4) rules to qualify for the Child and Dependent Care Credit:

1. You (and your spouse, if filing jointly) must have paid for the preschool so that you could work or look for work.
2. The child must be under age 13 when the care was provided.
3. You must provide the school district’s name, address, and Employer Identification Number (EIN) on your tax return.
4. You must have earned income during the year. (the IRS considers you to have earned income if you are a full-time student).

Note: Once a child starts kindergarten, the tuition itself is considered an educational expense and no longer qualifies.

If your child is in kindergarten or a higher grade, you can still claim the cost of before and after school programs provided by the district.

Fees for summer day camps (even those run by a school district) qualify, but overnight camps do not.

Enter Child and Dependent Care Expenses:

1. Open or continue your return.
2. Under Federal tab, Click on Deductions & Credits.
3. Look for "You and Your Family" section, and Click on Start/Revisit (next to Child and Dependent Care Credit).
4. For questions about  the care provider, enter the School District's details.

Note: if you paid the full tuition upfront for a school year that spans two tax years, you can only claim the portion of the expense for the care actually received during a specific tax year. You would claim the remaining portion on next year's return.