My wife and I want to claim a tax deduction for my son's preschool. If I work full time, how many college units does my wife need to take to be considered full time?

ANSWER

The BIDaWIZ Team's Answer:

Your wife is considered a full-time student if she is enrolled at a school for the number of hours or classes that the school considers full time. She must have been a full-time student for some part of each of 5 calendar months during the year. (The months need not be consecutive.) Please note that the term "school" includes high schools, colleges, universities, and technical, trade, and mechanical schools. A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. This is referenced in IRS Publication 503 and Internal Revenue Code Section 21. You can claim the child and dependent care credit of up to $3,000. If your adjusted gross income surpasses $43,000, the amount of credit you can claim is limited to 20% of qualified expenses, up to $3,000. For instance, if preschool costs $5,000, you could claim a tax credit of $1,000 or 20% of qualified expenses.