Kindergarten Costs Dependent care credit?

[GTS1101]

I read in taxbook that IRS clarified their decision on kindergarten costs that they are not considered daycare for the dependent care credit because the costs are educational. But for preschool even though there is some educational content it could be considered for child care expense.

My client last night told me their prior tax preparer explained to them that in California the department of education does not require kids to go to kindergarten. They can go from preschool to 1st grade. She used that to justify that the IRS would allow the deduction because kindergarten is not required by law so therefore cannot be considered educational costs but rather child care. I have never heard this before and was wondering what others think. Does anybody else run into this problem with child care costs. Clients that want to write off tuition for kindergarten?

I told them I still don't believe kindergarten costs would be considered as child care. Anybody else disagree with me and does the other preparer have anything to stand on a regulation or court case or something that says it is o.k. to deduct if kindergarten is not required by law?

Thank You!
GTS1101

[erchess]

On this one

I would need a cite before I even considered claiming kindergarten expenses for dependent care credit. Before and after school care would qualify of course if billed separately from regular day tuition. As a practical matter, if the credit saved $500 bucks in tax that would be a lot. On the other hand the defense if challenged would cost a lot more than it was worth. And remember that in light of preparer penalties there would have to be disclosure which would increase the chances of a challenge.

[oceanlovin'ea]

letter regarding pre-k costs

My nephew called me today to tell me he got a letter regarding the costs they incurred in sending son to pre-k was deductible on their tax return. He was attending an elementary school for this program.

Florida has a voluntary PreKindergarten program which is "free" for 3 hours per day. You can then pick your child up after those 3 hours or you can leave them for the whole day and you pay for the rest of the day.

I was surprised to hear he got this letter and I want to see it. In his case, it won't matter because in order to claim any child care expenses, either both parents work or are in school. My nephew's wife was in school for a little while in the beginning of the year, but by the time he went to school, she was at home with a new baby. So no day care expenses allowed.

But I do want to know more about his letter. Because I didn't think any of these would be deductible if at a public school.

Linda EA

[BP.]

PreKindergarten program . . . I didn't think any of these would be deductible if at a public school.

Why make the distinction for public school? Still qualifies. Check pub 17, p. 215, bottom left.