Dependant Care credit

[Tvonhaefen]

I'm looking for a little clarification here on the dependant care credit. The Taxbook(which I love) states that expenses for schooling for 1st grade and above don't qualify, which infers that kindergarten expenses would qualify. But, IRS Pub 503 (2005) state the following:

Education. Expenses for a child in nursery school, pre-school, or similar programs for children below the level of kindergarten are expenses for care.

Expenses to attend kindergarten or a higher grade are not expenses for care. Do not use these expenses to figure your credit.

Do anyone have any insight for this issue. The IRS pub is from 2005, so has the rule changed.
Thanks!
Troy

[Dennis V]

Kindergarten

Yes, the rules changed from 2004 to 2005. In 2004, expenses for kindergarten were allowed as daycare expenses. In 2005 they were not. This is reflected in the IRS Pubs, but a lot of the other publications didn't pick up on this right away.

[Bees Knees]

There was no rule change. IRS just decided to make up some new rules.

We talked about this a while back at http://www.thetaxbook.com/forums/showthread.php?t=1804