Did You Know SCS Preschool May Come With a Tax Benefit?
Your 3K or 4K tuition might qualify for the Child and Dependent Care Credit — here’s what families should know.
Tuition-paying SCS preschool families with children enrolled in either 3K or 4K may be eligible for meaningful federal and state tax credit on their tuition. Here’s what we know. And, if you have a child at SCS in either of these grades, here’s what you will want to discuss with your tax professional.
What is the Child and Dependent Care Credit?
The Child and Dependent Care Credit is a federal tax credit that allows working parents to claim qualifying care expenses for children under kindergarten age. In many cases, this includes preschool tuition — like your 3K or 4K enrollment at SCS — as well as extended care costs like our Sonshine Room.
Wisconsin also offers a state-level Child and Dependent Care Credit, which means families may see savings at both the federal and state level.
What could this mean for an SCS family?
Every family’s situation is different, but here’s a general picture of what the numbers might look like for a typical two-income SCS household:
$3,275
3K tuition
$3,600
4K tuition
~$1,200
Potential tax credit
(varies by income)
~$1,200
Potential tax credit
(varies by income)
~$2,075
Estimated net tuition cost
after credit
~$2,400
Estimated net tuition cost
after credit
That means your child’s faith-based preschool education at SCS could effectively cost around $2,000 per year for qualifying two-income households; making it one of the best educational values in our community.
A few important things to know
The federal credit is currently capped at $3,000 per child per year in qualifying expenses — you can review the full rules and income tables on the IRS website. The actual credit amount you receive depends on your family’s adjusted gross income. Generally, both parents must be working (or one working and one in school/job training) to qualify — see IRS Publication 503 for the full eligibility details.
State benefits and credit amounts can also vary. You can find Wisconsin-specific guidance through the Wisconsin Department of Revenue. The bottom line: this credit is real, it’s legal, and many SCS families may already be eligible without realizing it.
Important Disclaimer
The information in this post is for general awareness only and is not tax advice. Every family’s tax situation is unique, and the credit amounts and eligibility shown above are illustrative estimates — your actual benefit could be higher or lower depending on your income, filing status, and other factors.
We strongly encourage you to consult a qualified tax professional or CPA before making any decisions based on this information. SCS does not provide tax or financial advice, and we cannot guarantee any specific outcome for your family.
What should I do next?
Talk to your tax preparer or accountant and ask specifically about the Child and Dependent Care Credit. Bring your SCS tuition receipts and any Sonshine Room invoices. If you’re not currently working with a tax professional and would like a referral, feel free to reach out to the SCS office — we’re happy to point you in the right direction.
We’re grateful for a community that looks out for one another, and we hope this is helpful for your family this tax season and beyond. As always, feel free to reach out to us with any questions!