Are Homeschool Supplies Tax Deductible?
Homeschooling continues to be a popular form of education. There are many benefits to teaching your children at home, but it does come at a cost. Homeschool supplies are not tax deductible on a federal level, but some states have tax breaks for families providing home education.
Families must have money for expenses and are responsible for finding curriculum, such as the best science curriculum for homeschool from Home Science Tools. If you are homeschooling or considering it, we have answers to your tax-related questions. However, you should contact a tax consultant in your state for the most up-to-date and accurate information.
Federal Tax Breaks for Homeschool
How much does it cost to homeschool? This question is something every family asks. Depending on the family and educational needs, it can cost a few hundred to several thousand dollars. A tax break would be a relief for some homeschoolers. However, homeschool supplies are not tax deductible on a federal level.
Homeschool supplies are generally considered personal expenses‒although families may be able to deduct specific special education expenses, such as tutoring in specialized topics or tuition for special instruction. There are other federal tax code breaks homeschooling families may be able to take advantage of, such as:
Educational Savings Accounts
Families with an Education Savings Account (ESA) can invest in their child or children’s future. Parents can put a certain amount into a tax-advantaged account for yearly qualified educational expenses.
ESAs are typically used for higher education expenses, but can also be used for K-12 education, including homeschooling costs. The best age to start homeschooling varies, but the earlier you can invest in your child’s future, the better.
Home Office Deductions
Setting up a dedicated space in your home exclusively for homeschooling may make you eligible for tax deductions. When you have a home office, you can typically deduct a portion of your home-related expenses, like mortgage interest, property taxes, and utilities.
If you’re homeschooling, look into these federal tax breaks. It’s also important to consult a qualified tax professional or financial advisor to understand specific eligibility requirements.
Extracurricular Activities
Research the local homeschool and co-op groups in your area. There are wonderful groups to meet with, which can be fun social outings for your children and a chance for you to connect with other homeschooling parents.
State Tax Credits for Homeschool
While homeschooling families can’t get a deduction on the federal level, several states offer tax breaks. These deductions can offset some of the cost of buying school supplies and curriculum.
However, these state-level tax incentives vary widely from state to state. Each state has its own criteria, allowable expenses, and how much deduction is available.
Let’s go over some common types of state tax credits for homeschooling.
Education Tax Credits
Some states, like Illinois, offer tax credits for education-related expenses, including homeschooling supplies. This can also apply to curriculum materials and educational resources. Families can claim these credits on their state income tax returns, but make sure to keep track of your receipts and records of your spending.
Business Deductions for Homeschooling
Homeschool parents who are self-employed may be able to take advantage of additional tax relief opportunities. These breaks can be obtained through business deductions.
If there are homeschooling activities that can count as a legitimate business, some costs from supplies may be deducted. Each state is different, so read up on your state’s tax regulations and guidelines.
Each state sets limitations, income thresholds, or other eligibility requirements. Tax laws and regulations can change over time, so it’s important to pay attention to new tax incentives as they become available. You should consult with a qualified tax professional for personalized guidance and ensure you get every deduction possible.
The Bottom Line
Homeschooling expenses can add up quickly, and there are no tax deductions for supplies on a federal level. However, certain states offer tax breaks that homeschooling families can take advantage of. Using high-quality, hands-on education products can help you get the most out of your money, and you may be able to deduct it from your taxes – depending on your state.
