How to Pay for Homeschooling

You may be able to save money with tax-advantaged savings accounts or tax breaks from your state.

- ANDREA BROWNE TAYLOR

AS THE NATION CONTINUES TO GRAPPLE with the COVID-19 pandemic, many public school districts have continued to offer distance-learning programs, either full- or part-time. As a result, many parents are exploring options to gain more control and to best educate their children—from homeschooling their kids themselves to forming small co-ops with other quarantined families and hiring a private tutor.

But these options come at a cost. On average, homeschooling ranges from $700 to $1,800 per child per school year, according to Time4Learning.com, an online resource for homeschool families. That includes the cost of the curriculum, school supplies, field trips and extracurricular activities. There are, however, steps you can take to lower your costs.

Taxes. Although there are no federal tax deductions or credits for homeschooling expenses, some states offer tax breaks for homeschool households:

• ILLINOIS parents (or legal guardians) of a full-time homeschooled student younger than 21 may qualify for the Education Expense Credit for homeschool expenses totaling $250 or more.

• In INDIANA, the parents of a homeschooled elementary or high school age child may qualify for a $1,000 state tax deduction.

• Parents who homeschool in LOUISIANA may qualify for a tax deduction of up to 50% of qualifying educational expenses, not to exceed $5,000 per dependent.

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