Is Homeschooling Tax Deductible? A Complete Guide

Tired of textbooks eating up your budget while the term “homeschooling” keeps popping up in policy debates? Homeschooling can be expensive! Imagine spending roughly $1,300–$1,600 annually on curriculum, tutoring or tech, only to find the IRS still sees it as a personal cost. You might be wondering if there are any ways to save money on your taxes when you homeschool.

It can be confusing to figure out, especially since the federal government doesn't offer any tax deductions specifically for homeschooling expenses. This blog is your guide to understanding homeschool and taxes. We'll explore the different ways you can potentially save money and reduce your tax burden. We'll also provide you with some helpful tips for keeping track of your homeschooling expenses and making sure you are following the tax rules.

Key Takeaways

• No federal tax deduction available for homeschooling

• State tax benefits vary widely: States like Minnesota, Louisiana, Illinois, and Colorado offer credits or deductions

• Special education expenses may qualify for tax deduction

• Smart tax strategies help save: Education Savings Accounts (ESAs), home office deductions, and others 

Is Homeschooling Tax Deductible?

No, homeschooling expenses are not tax-deductible at the federal level in the United States. This means that parents cannot deduct the cost of homeschool supplies, curriculum, tutoring, or other related expenses on their federal income tax return.

Even though homeschooling provides an essential education at home, the IRS treats the costs of homeschooling as personal expenses, just like the costs of raising a child. Federal tax law does not offer deductions or credits specifically for homeschool expenses, unlike some private school tuition credits or charitable donations.

However, a few U.S. states provide limited tax benefits for homeschoolers. These vary widely, and not every state offers them. For example:

• Illinois: Offers the Education Expense Credit, which covers some educational costs, including homeschool expenses for qualified materials and supplies.

• Minnesota: Allows certain deductions or credits for educational expenses, including homeschool curriculum and supplies.

• Louisiana: Offers a tax deduction of up to 50% of qualified education expenses, up to $5,000 per child, including homeschooling costs.

Let’s learn more about the state tax breaks in the next part! 

Are There Any State Tax Breaks For Homeschooling?

While you can't get any money back on your federal taxes for homeschooling, some states offer tax breaks for homeschooling families. Each state has its own rules about taxes and homeschooling. Some states offer tax credits, which means you can get money back on your taxes, like a refund.

Here are some states that offer tax breaks:

Minnesota

You can get money back on your taxes for 75% of your homeschooling expenses, up to $1,500 per child. This can really add up and help with the cost of books, curriculum, and other materials.

Indiana

You can subtract up to $1,000 per child from your income for homeschooling expenses. This can help lower your taxable income and save you money. With a state tax rate presently at 3.4%, that equates to $34.00 less in state tax per qualified student. 

Louisiana

You can subtract 50% of your homeschooling expenses from your income, up to $5,000 per child. However, you need to get approval from the State Board of Elementary and Secondary Education first. This is a great option if you have high homeschooling expenses.

Illinois

You can get 25% back on your taxes for homeschooling expenses over $250, up to $750 per family. This can be helpful for families with multiple children who are homeschooling.

Colorado

Taxpayers can receive a credit of $500 for at-home instruction of more than 80 but less than 160 days. For at-home instruction of at least 160 days during the tax year, the credit increases to $1,000.

Oklahoma

Under this program, families who homeschool can receive a refundable tax credit of up to $1,000 per student for qualified educational expenses. That includes curriculum and tutoring costs.

These are just a few examples, and the rules vary from state to state. Be sure to check the specific requirements for your state!

By taking advantage of state tax breaks, you can help reduce the cost of homeschooling and make it more affordable for your family.

3 Tips to Get Tax Benefits While Homeschooling 

Homeschooling may not offer direct federal tax deductions, but smart financial planning can help families save on taxes in other ways. Here are three practical strategies that parents can explore:

1. Use Educational Savings Accounts (ESAs):

Parents can open an Education Savings Account (ESA) and use it to save for their child’s education with tax advantages. While originally for college, some states allow ESA funds to cover homeschool-related expenses, like curriculum or supplies.

2. Claim Home Office Deductions:

If a specific room in your home is used solely for homeschooling, you may qualify for home office tax deductions. This can cover part of your home’s expenses, such as mortgage interest, electricity, and property taxes, reducing your overall tax bill.

3. Explore Business Deductions if Self-Employed:

Homeschooling parents who run a home-based business may qualify for business-related deductions. For example, some learning materials, equipment, or part of your internet costs could be deducted if they are also used for your business.

While homeschooling itself doesn’t qualify for direct tax breaks, using education savings accounts, home office deductions, and business write-offs can help you save smartly.

Next, let’s see if your child has special needs then if you can get tax deductions! 

Taxes Deductions For Special Education Expenses While Homeschooling

If your child has special needs and you are homeschooling them, you might be able to deduct some of your homeschooling expenses from your taxes. This means you might get some money back or have to pay less in taxes!

Here are some examples:

• Tutoring to help your child with specific subjects or skills

• Curriculum designed for children with special needs

• Therapies like speech therapy or occupational therapy to help your child improve their communication or motor skills

Doctor's Note: You will need a doctor's note that says your child needs these services. The doctor's note should explain how these services relate to your child's disability.

In the next part, we will explore some of the available financial resources for homeschooling. 

Finding Help With Homeschooling Costs

Homeschooling can be expensive, but there are ways to get help paying for it. This section will show you how to find financial assistance, such as grants and programs that can help you pay for homeschooling.

Here are some of them:

• Grants: Some homeschool organizations offer grants, which are like free money that you don't have to pay back. These grants can help you pay for things like curriculum and supplies. It's always worth checking to see what grants are available.

• HSLDA: The Home School Legal Defense Association (HSLDA) is an organization that offers grants to homeschooling families. They have different types of grants, so check their website for more information.

• Local Groups: Joining a local homeschool group can also help you find resources and support. These groups often have information about local scholarships, discounts, and used curriculum sales.

• Special Programs: Some states have special programs that give money to homeschooling families. Like, Arizona has the Empowerment Scholarship Account (ESA), which gives families money to use for educational expenses.

By using these resources, you can make homeschooling more affordable for your family.

Next, we will explore why it’s important to keep a few key points in mind about tax while homeschooling your child. 

Get Help from a Tax Expert

Taxes can be tricky, especially when you're homeschooling. There are many rules to follow, and it can be hard to understand them all. Therefore, it is important to consult with a professional.

Here’s what to do:

• Tax Professionals: It's a good idea to talk to a tax expert, like an accountant or tax preparer. They can help you understand the tax rules and make sure you are doing everything correctly!

• State Rules: Each state has different rules about taxes and homeschooling. A tax expert can help you understand the rules for your state. They can also help you find any tax breaks that you might be eligible for.

• Stay Updated: Tax laws can change, and a tax expert can help you stay updated on the latest changes. This is important because you want to make sure you are always following the current rules.

Also, always make sure to keep good records. Keep track of all your homeschooling expenses, like books, curriculum, and supplies. If you share expenses with other homeschooling families, make sure you keep clear records of who paid for what. This will help avoid confusion and ensure that everyone gets the correct tax deductions.

By following these tips, you can make sure you are following the tax rules and taking advantage of any tax breaks that are available to you.

Homeschooling with The School House Anywhere (TSHA)

The School House Anywhere (TSHA) is an educational program designed to provide high-quality, flexible, and portable learning experiences for homeschooling families, micro-schools, and education entrepreneurs. 

TSHA offers a comprehensive, developmentally aligned curriculum grounded in the American Emergent Curriculum (AEC). The AEC, developed by TSHA, is a hands-on educational framework for Pre-K to 6th grade. It connects subjects in real-world ways, encouraging children to explore, think creatively, and solve problems.

With us, you will get: 

• TSHA Educator Film Library:  300 How-to Teaching & Informational films.

• Custom AEC printable materials & worksheets.

• Access to our Online Progress, Organizing & Portfolio Management Tool: Transparent Classroom.

• TSHA Materials Boxes* (optional to purchase)

• Digital TSHA Welcome Box to get you started!

• Access to TSHA Member Site

• LIVE Educator & Founder Online Gatherings weekly with Q&A session (Recorded & posted for future reference!)

• Live scheduled office hours

• Parent / Educator online social media network & support

Also, we do not support AI for students, but we believe in the power of AI. So, we offer AI-supported services only for parents and teachers to make their teaching process smooth and time-efficient! 

Wrapping Up

Understanding the tax implications of homeschooling can seem complicated, but it doesn't have to be! By staying informed and organized, you can make the most of any tax benefits that are available to you. Remember to keep good records of your homeschooling expenses. Don't hesitate to reach out to a tax professional if you have any questions. With a little planning and effort, you can make homeschooling more affordable for your family.

Explore TSHA’s today and start your homeschooling journey. Register as Parent or Educator.

FAQs

1. Can homeschoolers deduct internet or utility bills used for online learning?

Only if you qualify for a home office deduction and a portion of your home is used exclusively for homeschooling or a business. Otherwise, general household expenses like internet and utilities are considered personal and are not deductible solely for homeschooling purposes.

2. Are homeschool co-op fees or membership dues tax-deductible?

No, homeschool co-op fees or membership dues are not tax-deductible for personal education purposes. These costs are considered voluntary participation in educational groups and do not qualify as charitable donations unless the organization is a registered nonprofit and the payment is a donation, not a fee.

3. Can I claim a tax deduction if I donate used homeschool materials to a charity?

Yes, if you donate books, curriculum, or supplies to a qualified nonprofit organization, you may claim a charitable donation deduction on your federal taxes. Be sure to keep donation receipts and follow IRS guidelines for valuing non-cash donations.

4. Do educational field trips qualify for any type of tax relief?

No, the cost of field trips, museum passes, or educational outings is considered a personal expense and does not qualify for federal or state tax deductions. These activities, while valuable for learning, are treated the same as recreational spending in the eyes of the IRS.