Getting Tax Credits for Home Schooling | Best Home Schooling Resource

Home schooling can be an expensive undertaking. There are federal tax credits available for teachers who work in traditional schools, but what about the home school teachers? As usual, it looks as if the law was written to exclude home school teachers. Let’s take a look at getting tax credits for home schooling.

federal taxes

The tax law specifically states that you must be employed by an accredited school (they will check for a 1099 or W2) and that this is for unreimbursed, out of pocket expenses for classroom supplies. If you are a homeschool teacher, you are not employed by your school and most likely the home school is not accredited by any organization.

So this tax credit is not one you can take advantage of. Don’t try to do this thinking you won’t get caught. The IRS is very aware that homeschoolers may take this credit when they should not. It’s not worth the hassle of an audit or having to pay back taxes.

There are tax credits available for home school families who have children with special needs. This is not for children who have minor learning disabilities, this is a tax credit for families who have children with severe disabilities and who require hiring of specialized teachers, health care assistants and other professionals in order teach and care for their disabled child.

The tax credits vary, but if you have a child with downs syndrome, severe autism, muscular dystrophy, or other severe disability including blindness or deafness, then you most likely qualify for a tax credit.

This is good news because the cost of providing proper care for these children is huge. These credits apply for homeschool costs as well as for medical costs. Check with a good tax professional to be sure that you get all of the credits you deserve.

There may be other tax credits available to you as a homeschooler on a state level. You will need to check with your state’s tax code to be sure if there is anything you can deduct or get credit for. One way to get a deduction in many states is to open a 529 account for college or post secondary education for your child.

In North Carolina you can deduct up to $7,500.00 in 529 contributions for the tax year 2007. Your state may have deductions as well. Check with the 529 program in your state to see what is available. This credit is available to parents and grandparents so it is something to look into.

It is not restricted to homeschool families. Anyone with a child or grandchild is able to open up a 529 account. Overall, getting tax credits for home schooling is not easy. What is available is very limited, so be sure to check with your tax professional.