Submitted By: Barbara
Answered: June 15, 2015 8:25 am

I contributed $2,100 for my grandson’s preschool fees. Is this tax deductible?

You cannot deduct the cost of early education. However, the grandchild’s parent may be eligible for a dependent care credit (assuming you gave the funds to the parent who then paid the tuition). Pre-school tuition is a qualified expense for purposes of this tax credit.

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Tax Glossary

Accrual method of accounting

A business method of accounting requiring income to be reported when earned and expenses to be deducted when incurred. However, deductions generally may not be claimed until economic performance has occurred.

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