Fees for preschool are not tax deductible, but parents who work or go to school may be eligible for the child care credit on their taxes. The child care credit covers any fees for child care, including day care, preschool, before- and after-school programs for older kids, nannies and babysitters.
In order to take the credit, parents must be working or a full-time student. The total credit depends on family income, and the percentages are subject to change by the IRS. Families earning less than $15,000 per year can get up to 35 percent of eligible expenses. The percentage decreases based on income, but the low end is 20 percent for families earning $43,000 or more.