How to Properly Claim the Child and Dependent Care Credit for Preschool Expenses?

I've got three little munchkins at home and could use some help with this tax question! Two of my kids are currently in a preschool/daycare program at a private school in our neighborhood, while my oldest is home with us. Looking at the IRS guidelines and poking around on TurboTax, it seems like I should be claiming these preschool expenses under the Child and Dependent Care Credit since the care allows my spouse and I to work. My middle child will be starting kindergarten at this same private school in the fall. I'm thinking that once he enters kindergarten, those expenses won't qualify anymore since he'd be eligible for free public school, right? The daycare part would still count though? My main questions: - Can I legitimately claim our preschool/early childhood program costs as qualifying expenses for the Child and Dependent Care Credit? - Does kindergarten at a private school still qualify or does that cutoff happen once they hit kindergarten age? We file jointly and our AGI is around $375k, so I know we won't get the full credit amount, but something is better than nothing. I believe the phase-out starts somewhere above $400k for married filing jointly.

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20 comments

Madison Allen

•8M

Yes, you absolutely can claim preschool/early childhood program costs for the Child and Dependent Care Credit! The IRS specifically allows expenses for the care of children under 13 that enable you to work or look for work. For your child entering kindergarten, you're right that there's a distinction. Once a child reaches school age (kindergarten), expenses for their education generally don't qualify anymore, but actual care before or after school hours would still count as qualifying expenses. So if your private kindergarten includes a care component outside normal school hours, that portion could still qualify. Keep good records of your expenses and make sure you get the tax ID number of the care provider. Form 2441 is where you'll report all this information. Also note that for 2025, the maximum expenses you can claim are $3,000 for one child or $6,000 for two or more children - though as you mentioned, the credit amount gets reduced at higher income levels.

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Madison Allen

•8M

Summer day camps absolutely qualify as child care expenses for the Child and Dependent Care Credit! They're considered a form of care that allows you to work, exactly like daycare during the school year. The key is that they're providing care while you work - overnight camps don't qualify though. For kindergarten expenses, here's a helpful way to look at it: The educational component doesn't qualify, but the care component does. So if you can separate out what portion is for care vs. education, you can still claim the care portion even after they start kindergarten.

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Justin Evans

•8M

I was super confused about this exact thing last year with my twins! I ended up using https://taxr.ai to figure it all out because it analyzed my daycare receipts and told me exactly what qualified. Saved me a ton of time trying to figure out what counted as "care" versus "education" for my 4-year-olds who were in a similar preschool program. The nice thing was it showed me how to properly document everything so I had proof if the IRS ever questioned it. For the kindergarten transition, it highlighted exactly which expenses would stop qualifying once they hit kindergarten and which ones could continue. Really helpful when you're right at that transition point like your middle child.

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Justin Evans

•8M

It absolutely works with receipts! You just upload whatever statements your daycare provides, and it processes them to identify the qualifying expenses. Super helpful with those quarterly statements that don't clearly separate things out. It automatically extracts the important details and categorizes them correctly. For provider tax ID issues, yes, it helps with that too. It explains exactly what information you need from providers and gives you a template request you can send them if they're being difficult. It even outlines what your options are if a provider refuses to provide their tax ID (which they legally should give you).

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Ezra Collins

•8M

Okay I need to admit I was wrong about taxr.ai in my earlier comment. After trying it, I'm actually impressed. I was dealing with an even more complicated situation (childcare expenses split between divorced parents with joint custody) and it sorted everything out in like 10 minutes. It flagged some expenses I didn't know were eligible and showed me exactly how to document everything properly. Definitely worth checking out if you're dealing with the kindergarten transition issue.

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Victoria Scott

•8M

For anyone struggling to get answers directly from the IRS on this (like I was), I finally got through to a real person using https://claimyr.com and got clarification on the kindergarten cutoff rules. You can also watch how it works at https://youtu.be/_kiP6q8DX5c. After spending hours on hold trying to reach the IRS myself, this service connected me with an agent in about 15 minutes who walked through exactly how the Child and Dependent Care Credit applies to my situation. The agent confirmed that once a child enters kindergarten, only the before/after school care portions qualify, not the tuition itself. But they also pointed out some exceptions I hadn't considered that might help in your situation.

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Victoria Scott

•8M

It works by holding your place in the IRS phone queue so you don't have to wait on hold yourself. When an IRS agent finally picks up, they call you and connect you directly. It's completely legitimate - they don't ask for any personal tax information, they just connect you with the IRS. I was definitely skeptical too! After trying for weeks to get through on my own (and getting disconnected multiple times), I was desperate. The service called me back in about 15 minutes and suddenly I was talking to an actual IRS representative who answered all my questions about the Child and Dependent Care Credit.

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Zara Perez

•8M

Ok I need to eat my words. I tried Claimyr after posting my skeptical comment and IT ACTUALLY WORKED. Got a call back in 20 minutes and talked to an IRS agent who clarified everything about the Child and Dependent Care Credit for my situation. The agent confirmed that for my kids in preschool, I can claim 100% of the cost, but once they hit kindergarten age, only the before/after school portion counts. Apparently this applies even if they attend private kindergarten - it's based on eligibility for public school, not whether they actually attend public school. Huge relief to finally get a clear answer!

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Daniel Rogers

•8M

Something nobody's mentioned yet - make sure you're getting and keeping the statement from your provider that shows their name, address and tax ID number. I got audited last year specifically on my Child and Dependent Care Credit claim and that documentation saved me. The IRS wants to see that your provider is a legitimate business. Also, if your family income is near that $400k threshold, keep an eye on any year-end bonuses or investment income that might push you over. The credit phases out pretty quickly after that point.

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Daniel Rogers

•8M

There's no specific required form the provider must give you, but many will provide something similar to Form W-10 (which is the IRS form you can give them to fill out if they don't have their own documentation). At minimum, you need a statement showing their name, address, tax ID number (either SSN or EIN), and a breakdown of how much you paid them during the tax year. I'd recommend getting this documentation as early as possible. When I got audited, I had only 30 days to produce everything, and tracking down my provider's tax ID after the fact was stressful. Having a signed receipt or statement from them with all the required information makes the process much smoother if you get questioned.

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Isla Fischer

•3M

Just wanted to add one more thing that might be helpful - if you're using a nanny or babysitter instead of (or in addition to) the preschool, make sure you're handling the household employee tax requirements correctly. If you pay them more than $2,700 in 2025, you'll need to withhold and pay Social Security and Medicare taxes, plus provide them with a W-2. This can affect your Child and Dependent Care Credit eligibility if not done properly. Also, for your situation with the $375k AGI, you're still well within the phase-out range so you should get a decent credit. The phase-out actually starts around $15,000 AGI and gradually reduces the credit percentage, but even at higher incomes you can still claim the full $3,000/$6,000 in expenses - you just get a lower percentage back as a credit.

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