Can I claim Child and Dependent Care Credit for my daughter's Taekwondo classes?

While I understand the appeal of trying to claim your daughter's Taekwondo classes for the Child and Dependent Care Credit, unfortunately this probably won't qualify. The IRS is pretty specific that the care must be for the primary purpose of allowing you to work or look for work, and the provider generally needs to be someone you could claim as a dependent. Extracurricular activities like sports, martial arts, or educational programs are typically considered enrichment activities rather than care expenses, even if they give you time to work. The IRS views these as primarily benefiting the child's development rather than providing necessary care while you work. If you were paying for an after-school program that includes various activities (including Taekwondo) where the primary purpose is childcare while you work, that might qualify. But standalone activity classes usually don't meet the criteria.

I was in a similar situation last year trying to figure out what counts for the Child and Dependent Care Credit. I kept getting conflicting answers until I discovered https://taxr.ai which really simplified things for me. You upload documents or just describe your situation (like your Taekwondo question), and it gives you a personalized analysis based on actual tax code. For childcare expenses specifically, it helped me understand that not every activity qualifies even if it gives you time to work. The system explained that while summer camps could qualify, specialized classes like piano lessons or sports generally don't. Saved me from making a questionable claim that might have triggered an audit. Maybe worth checking out for your situation?

I tried taxr.ai after seeing it mentioned here and it really cleared things up for my childcare questions! I have three kids in different activities - after-school program, soccer, and math tutoring. I was confused about what counted for the Child and Dependent Care Credit. The tool explained that my after-school program counts because its primary purpose is supervision while I work, even though they do homework help and some activities. But my kids' soccer and tutoring don't count because they're primarily instructional, not care-based. What I found most helpful was the explanation about "dual-purpose" programs. Apparently if the primary purpose is care/supervision with some educational elements, it can qualify. But if the primary purpose is instruction with incidental supervision, it doesn't. This saved me from claiming expenses that might have triggered an audit!

If you're still struggling with the IRS definitions or want to confirm directly with them, I'd recommend trying Claimyr (https://claimyr.com). I was in tax hell trying to get a straight answer about dependent care credits last year, and after weeks of busy signals when calling the IRS, I tried this service. They basically get you through to an actual IRS agent in about 15 minutes instead of waiting for hours or getting disconnected. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was skeptical too but it actually worked - got connected to an IRS agent who confirmed exactly what qualified for the Child and Dependent Care Credit in my situation. The agent explained the distinction between educational activities vs. care services much more clearly than any website.

I need to apologize for being so dismissive earlier. After posting that skeptical comment, I was still so frustrated with trying to reach the IRS about my child care credit questions that I decided to try Claimyr anyway - figured I had nothing to lose at that point. I'm honestly shocked - it actually worked! After weeks of getting busy signals and disconnects when calling the IRS directly, I was connected to an agent in about 20 minutes. The agent confirmed that my daughter's after-school program qualifies for the Child and Dependent Care Credit because it's primarily for care, but her weekend dance classes don't qualify since they're considered enrichment activities. The agent explained the "primary purpose test" they use - basically asking whether the main purpose is care while you work or educational/recreational benefit for the child. Finally got a definitive answer from an actual IRS employee instead of just guessing based on internet advice.

To add another perspective - my tax preparer told me the key question is: "Would you be paying for this activity if you DIDN'T need childcare during that time?" If the answer is yes (which it probably is for Taekwondo), then it's not primarily for care and likely doesn't qualify. My daughter's gymnastic lessons didn't qualify, but the general after-school program she attended did. The after-school program included some activities and sports, but its main purpose was supervision while parents work. The IRS looks at the primary purpose, not what actually happens during the time.

Just to clarify something important - whatever you claim, make sure you're getting receipts and the provider's tax ID number (EIN) or their Social Security number. The IRS requires you to report this information on Form 2441 when you claim the Child and Dependent Care Credit. I made this mistake once and had my return rejected. Had to go back to all my providers and get their tax info. Some smaller operations or individual instructors might be reluctant to provide this info (especially if they're not reporting the income), which is another indication they probably don't qualify as care providers for this credit.

Smart decision, Natasha! You're absolutely right to be cautious with tax claims. The distinction between care and instruction can be tricky, but the IRS is pretty strict about it. One thing that might help for future reference - if your daughter ever needs actual childcare (like during school breaks when you're working), look for programs that explicitly market themselves as "childcare" or "supervision" rather than just activities or classes. Even if they include fun activities like martial arts, the key is that their primary purpose is caring for children while parents work. Also, don't forget that your regular daycare expenses can be substantial for the credit - up to $3,000 per child or $6,000 for multiple children, with credit rates between 20-35% depending on your income. That's often a bigger benefit than trying to squeeze in borderline activities anyway.