Private Pre-K and Dependent Care Credit.

[KumarB]

Client has child that attends Private Pre-K from 9am - 12pm, 5 days a week.
Some one else picks up child and watches him until both parents comes home..
He did say his prior tax preparer says it can not be done because its PRIVATE SCHOOL....
From what i understand, anything beyond private kindergarten is not eligible ...

Is the credit available for Pre-K regardless if private or not once all other test are met?

[TaxprepP]

Client has child that attends Private Pre-K from 9am - 12pm, 5 days a week.
Some one else picks up child and watches him until both parents comes home..
He did say his prior tax preparer says it can not be done because its PRIVATE SCHOOL....
From what i understand, anything beyond private kindergarten is not eligible ...

Is the credit available for Pre-K regardless if private or not once all other test are met?

From my understanding for the dependent care credit, the intent is to be child care and may include some learning. If the intent is learning then not allowed for the credit. In this case it appears to be intent learning as Pre-K is free at most public schools in my state.

[TaxGuyBill]

There is no restriction against "private schools".


Here is the legal gibberish:


(5) School or similar program. Expenses for a child in nursery school, pre-school, or similar programs for children below the level of kindergarten are for the care of a qualifying individual and may be employment-related expenses. Expenses for a child in kindergarten or a higher grade are not for the care of a qualifying individual. However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be for the care of a qualifying individual.

(2) Dependent care centers—
(i) In general. The credit is allowable for services performed by a dependent care center only if—
(A) The center complies with all applicable laws and regulations, if any, of a state or local government, such as state or local licensing requirements and building and fire code regulations; and
(B) The requirements provided in this paragraph (e) are met.
(ii) Definition. The term dependent care center means any facility that provides full-time or part-time care for more than six individuals (other than individuals who reside at the facility) on a regular basis during the taxpayer's taxable year, and receives a fee, payment, or grant for providing services for the individuals (regardless of whether the facility is operated for profit). For purposes of the preceding sentence, a facility is presumed to provide full-time or part-time care for six or fewer individuals on a regular basis during the taxpayer's taxable year if the facility has six or fewer individuals (including the taxpayer's qualifying individual) enrolled for full-time or part-time care on the day the qualifying individual is enrolled in the facility (or on the first day of the taxable year the qualifying individual attends the facility if the qualifying individual was enrolled in the facility in the preceding taxable year) unless the Internal Revenue Service demonstrates that the facility provides full-time or part-time care for more than six individuals on a regular basis during the taxpayer's taxable year.

https://www.law.cornell.edu/cfr/text/26/1.21-1#d_5

https://www.law.cornell.edu/cfr/text/26/1.21-1#e_2