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 Can you deduct preschool tuition?
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Valued Contributor

220 Posts

Posted - 09/26/2005 :  08:25:26 AM  Reply  Reply with Quote
My daughter is in preschool and I'm wondering if anyone knows if the tuition is deductible. I didn't bother last year because she was only in it for a month and a half, but it is really adding up this year. Thanks

.Dawn DE

518 Posts

Posted - 09/26/2005 :  08:54:48 AM  Reply  Reply with Quote
Without doing a thorough search on www.irs.gov on Schedule C versus 2441, my gut feeling is that if you shop while your daughter is in preschool (ie, she is in child care so you can work), than you can use form 2441 to take a credit for your child care expenses the same way that an employee does. This only becomes difficult if you are using a computerized system to file your taxes and it doesn't recognize that both parents have income. I often have a problem when doing the taxes of a couple who have day care expenses when one spouse is self-employed. Since the requirement is that both parents have "earned income", my computer looks for w-2's from both parents, or it won't deduct the credit. I will have to look back at my notes, and see how I got around it. I'm not sure if we were able to put it on the Schedule C as a legitimate business expense. I will keep looking for the official IRS answer!

UPDATED: It appears that the IRS wants you to deduct it on the 2441 (dependant care expenses) form. The instructions for Schedule C make no mention of it, except to say that "family expenses" (which it does not define) are not deductible. Further, the instructions for form 2441 includes net profit from self-employment in it's definition of earned income. So, as long as you have a profit, you can use the credit to reduce any tax that you may owe.

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Hamilton, OH
94 Posts

Posted - 10/18/2005 :  12:00:18 PM  Reply  Reply with Quote
I agree with Dawn.

I did not look this up today, but I believe tuition for preschool and kindergarten can be used as child care expenses while you work for the child care credit. Tuition for private schooling for first grade and up cannot be used, although afterschool care costs still qualify.

The self-employed person has to show a profit, so if you pay for child care so both parents can work, but one's business doesn't make any money, you are out of luck for the credit, unfortunately.

MSPA Gold Certified #ct8cxq
Shopping Hamilton, Fairfield, West Chester and the northern Cincinnati suburbs.
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Star Contributor

Middletown, MD
900 Posts

Posted - 10/18/2005 :  6:25:50 PM  Reply  Reply with Quote
I have taken the H&R Block class. Preschool would fall under child care as long as you have some sort of employment. You could not deduct it so you can go to the hair salon! Read up on child care, it's all on irs.gov and good luck!
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Valued Contributor

Kingsburg, CA
157 Posts

Posted - 02/03/2009 :  3:03:00 PM  Reply  Reply with Quote
I agree, we claimed preschool as chidlcare so I could go to grad school and now I work part time shopping and sub teaching.

Mystery Shopping in the Central Valley of CA since 2005
Silver Certified since December 2008
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