Prepay child and dependant care

amother

Mon, Dec 13 2021, 2:43 pm

According to Hefkervelt you could prepay your playgroup morah for the months in 2022 and then claim it under the more generous 2021 child and dependant care tax credit rules. I do not see any reference to it on the IRS website. I see the opposite. Accountants can you advise.

play doe

Wed, Dec 29 2021, 5:32 am

Assuming your playgroup declares it's income, it should be fine.
Disclaimer: not an accountant

amother

Heather

Wed, Dec 29 2021, 5:33 am

My accountant told me no. $ can only be claimed when the care is provided. It’s disappointing. My school will have been happy to take the $.

play doe

Wed, Dec 29 2021, 1:26 pm

1) Who has to know when the care is provided? Do they ask that anywhere?

2) it is within a daycare's right to request the year's tuition up front, so if you paid this year, you should be allowed to deduct this year, no?

amother

Puce

Wed, Dec 29 2021, 1:34 pm

amother [ Heather ] wrote:

My accountant told me no. $ can only be claimed when the care is provided. It’s disappointing. My school will have been happy to take the $.

FYI private school tuition is not considered dependent care, only daycare, summer camp, before and after school care, and preschool expenses are eligible.

Motherhood

Wed, Dec 29 2021, 2:05 pm

Funny you’re asking.... dh just asked the same from his accountant. She said no. You need to show invoice as proof and they see you’re paying for next year

amother

Beige

Wed, Dec 29 2021, 3:49 pm

amother [ OP ] wrote:

It sounds like something that would fall under the category of “shtick” AKA illegal and under the table so of course you won’t find it on the IRS website. I imagine the playgroup would have to lie about what the money is owed for.

amother

Kiwi

Wed, Dec 29 2021, 4:08 pm

My accountant who is very straight and honest and does not do shtick, said we could do this. Pay my three year olds Morah now for January 2022 through June 2022 and claim it on our 2021 tax return and receive 50% back. As always ask your accountant

amother

Eggplant

Wed, Dec 29 2021, 4:12 pm

amother [ Puce ] wrote:

FYI private school tuition is not considered dependent care, only daycare, summer camp, before and after school care, and preschool expenses are eligible.

Does preschool for my 3 year old In a regular school count?

My accountant said he is unavailable to answer questions during the year. I am only paying him to file my taxes 🤷🏼‍♂️

amother

Amethyst

Wed, Dec 29 2021, 4:26 pm

amother [ Beige ] wrote:

Many small businesses use cash accounting method which counts income when it's received. It's 100% valid, no shtick. Look at any IRS business income return. You choose cash or accrual accounting method.

Op's question is perfectly valid.

I don't know the answer. I wouldn't be surprised if the answer is yes.

amother

Amethyst

Wed, Dec 29 2021, 4:28 pm

amother [ Eggplant ] wrote:

Does preschool for my 3 year old In a regular school count?

My accountant said he is unavailable to answer questions during the year. I am only paying him to file my taxes 🤷🏼‍♂️

If preschool is counted, then yes. It wouldn't matter if it's to a large school or private playgroup. The main factor would be that it's for a 3 year olds care.

amf

Wed, Dec 29 2021, 4:35 pm

amother [ Eggplant ] wrote:

My accountant said he is unavailable to answer questions during the year. I am only paying him to file my taxes 🤷🏼‍♂️

Might be time to find a new accountant...

amother

Eggplant

Sat, Jan 22 2022, 7:08 pm

amf wrote:

Might be time to find a new accountant...

I know.
Open to recommendations

amf

Sat, Jan 22 2022, 7:17 pm

amother [ Eggplant ] wrote:

I know.
Open to recommendations

What state are you in?

amother

Mimosa

Sat, Jan 22 2022, 7:49 pm

My daughters preschool sent a message about this, and our accountant said we should do it. I was under the impression it was legal, he’s not either the pulling shtick type.

amother

Eggplant

Tue, Jan 25 2022, 6:32 am

amother [ Mimosa ] wrote:

My daughters preschool sent a message about this, and our accountant said we should do it. I was under the impression it was legal, he’s not either the pulling shtick type.

Is the preschool in a regular school?
If it's only a preschool, it's for sure not shtick.
It's probably not shtick if it's preschool in a regular school, I'm just trying to find out before I do it.