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Level 2
posted Nov 18, 2021 12:05:16 PM

If I drop my child off for counseling, and I work when she's there, can I claim the dependent care credit for the fees paid to the counselor?

0 5 1518
5 Replies
Level 15
Nov 18, 2021 12:09:48 PM

No.  The purpose of the activity is therapy not child care. But the cost of therapy would be a medical deduction if other qualifications are met. 

Level 2
Nov 18, 2021 12:15:39 PM

Interesting.  So, my understanding is medical expenses that don't exceed a certain percent of my income can't be deducted.  Hence, if this were to qualify as a dependent care expense, then I'd still have been able to get $ back when doing taxes.  Now, as it is indeed for therapy that the child sees the counselor, but it is also in-effect childcare, am I not allowed to choose which way to classify it?  

Level 15
Nov 18, 2021 12:34:15 PM

Correct. You can’t reclassify a medical expense as child care. The therapist is not a child care provider. 

Level 15
Nov 18, 2021 12:58:16 PM

IRS Publication 503 says the following regarding expenses for the child care credit.


"An expense isn't considered work related merely because you had it while you were working. The purpose of the expense must be to allow you to work."


The purpose of the counseling is not to allow you to work. The purpose is to provide counseling for your child.

 

Level 2
Nov 22, 2021 10:14:46 AM

OK; ty.  I wish the IRS was clearer on that.  When I looked up child care, I took it to [hopefully] mean if the child is cared for, then it would count.  But, if medical negates that component, then yeah, I'd not be able to do it as dependent care.  I'd otherwise have thought as long as the appointment let me work, it would have satisfied the IRS.  Oh well.  Also, it is then strange that preschool can be considered dependent care, for pre-school is about education (less so for daycare, but regular preschool nowadays can be similar to what kindergarten was when I was a kid).