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

Passive activity loss rules

Rules that limit the deduction of losses from passive activities to income from other passive activities. Passive activities include investment rental operations or businesses in which you do not materially participate.

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