The good news is, Yes. Nursery school, preschool, and similar pre-kindergarten programs are considered child care by the IRS.
Here are the four tips you ought to know about the newly enhanced Child and Dependent Care credit for 2021.
- Tip 1: Expenses for overnight summer camps, kindergarten, and first grade (or higher) don’t qualify for the Child and Dependent Care credit.
- Tip 2: Some people are receiving monthly payments in advance, and then they get the rest of the credit on their 2021 tax returns.
- Tip 3: You will need either the Social Security number or tax ID of the childcare provider who takes care of your child while you work.
- Tip 4: The childcare provider is responsible for reporting their own income on a tax return.
With the new child care credit can you claim your expenses and list your daycare/babysitter information and get paid before them.
Does preschool tuition count for the Child and Dependent Care credit? If you want to know if your preschool tuition counts visit us today and let our Generational Wealth Specialist help you answer this question.