Is my child's tuition tax deductible?

Question

I am trying to decide whether I should sign up for the Child Care flexible spending account offered in my company.
My 3 years old son is going to PRE-K3 and we pay around $600 every month. Can I add the tuition to my itemized deduction when I fill fax in the next couple months?
My employer offers Child Care Flexible Spending Account which set aside $5000 from my paycheck, pre-tax, to pay for the tuition.

Do I save more money if I sign up for the Flexible Spending Account? or it is the same as I add the tuition to to itemized deduction

Thanks!

Answer 1

You have several questions here and I'll try and answer each. First, the Child Care Credit goes on Form 2441, not an itemized deduction on Schedule A. In most cases, if you make less than $30K and 1 dependent is involved, the 2441 is worth more than the FSA. If you make more, the FSA is better for you. Also remember, with the FSA you are re-imbursed, so you have to turn in a claim. There is a chart I've included below that goes into detail. It compares the FSA to the Child Care Credit based on income level. If you can open PDF files, take a look at it! Thanks to Barney & Barney.

Answer 2

With this amount of expense, it is probable that you would do best by using your FSA for $5,000 of your preschool expenses, which are going to be tax-free (assuming your child goes to preschool while you work).

The remaining expense you have is not tax-deductible.

If you choose not to use the FSA, you may get a Child and Dependent care credit of between 20% and 35% of the first $3,000 of expense. You use Form 2441 to take the Dependent Care Credit, you do not have to itemize to take this credit.

There is no tuition deduction that applies to preschool tuition.

Answer 3

No way to tell without figuring it both ways - sometimes the FSA is better, sometimes the child care credit is - depends on your personal situation.

And it would be a credit anyway, not an itemized deduction.

Answer 4

Because your child is so young, it isn't counted as tuition, it's counted as child care. If you qualify, you would possibly take a child care credit on your tax return for out of pocket costs (or pay for it with pre-tax fsa money).

Answer 5

i might say no, secondary training classes isn't deductible as a employer cost. i think of you may ought to tutor that that's undemanding and needed in that all and sundry different private faculties on your section required the comparable element, and it would nonetheless be a hard argument to make to the sales Agent undertaking the audit. in case you do come to a decision to deduct the classes be waiting to pay a penalty and pastime once you get audited by potential of the IRS.

Answer 6

The flexible spending account will put more money back in your pocket because its pretax. I think there is a cap on how much you can actually deduct on your return if you want to itemize it.

Answer 7

There are child care credits available - but once he starts kindergarten, you cannot claim regular school tuition.

Answer 8

that is a good question

Answer 9

thank you everyone for all the answers!