Federal Deductions
For the IRS Child
Care Deduction, you will need to show your eligibility and file the necessary
forms. To begin with, you cannot claim the deduction if you file Form 1040EZ.
You must use either Form 1040 or Form 1040NR. If you are married, you must file
a joint return for this credit. There are some other rules and forms which must
be considered, including:
·
Child
Qualification -
Children under the age of 13 qualify for child care deductions.
·
School
or Care Provider Information - Form W-10 contains important
identification information. You need the school name, EIN number, and an
invoice. If your child attends a home-based preschool, the care provider’s
Social Security number and a Form W-4 should be used instead.
·
Proof
of Earnings -
For most families, filing a Form W-2 for each wage earner is required. If you
belong to a faith which is opposed to Social Security, a Form 4029 is used to
show your earnings.
·
Form
2441 -
This form is where most of the care
provider information
will be collected.
State Deductions
If you live in a
state with a state income tax, you may be eligible for deductions at the state
level. Regulations and requirements for state deductions varies from one
location to another. To find out whether you can file for a deduction in your
state, contact your state’s tax agency.
School Oriented Donations
Purchasing sports uniforms
for your child alone are not deductible, but making a donation to the school to
help cover the cost of uniforms for all team members may be. You can also claim
a deduction
for other donations,
including the cost of items used in the preschool classroom such as crayons,
paper towels, and equipment. When documented properly, even cash donations made
to the school can be deducted.
Using a Flexible Savings Account
Unfortunately, you
cannot claim a tax deduction for preschool if your child’s tuition was paid in
full or part through an FSA. Because of the nature of FSAs, the money is
already tax-free, and therefore does not qualify for an additional deduction.Preschool expenses must be claimed as a childcare expense rather than a tuition fee. Federal law does not provide deductions or exemptions for tuitions, but child care costs are covered in order to assist families of single parents or where both parents hold full-time jobs. If you have a home-based occupation, talk with an accountant to find out how your deductions may be affected.
Montessori School in Newark offers premium Montessori Education to children ages 2 to 6. Our teachers highlight the values of a Montessori Education each day - self-discipline, self-motivation, independence, and instilling a love of learning in children. Contact us today to learn about the Montessori difference and take a tour of our preschool!
