Issues Library—Tax Policy

Education Tax Credits

What are Education Tax Credits?

Education tax credits reduce the amount of taxes owed by those who spent money on educational expenses. For example: if a person owes $4,000 in taxes but has spent $500 on educational expenses, that taxpayer can subtract the $500 from the amount owed, which leaves a total of $3,500 in tax liability.

Can Homeschoolers Benefit from Tax Credits?

The federal government does not currently extend any educational tax credits to homeschoolers. A handful of states, however, do provide for some type of educational tax credit for private education, and a few of them allow homeschoolers to benefit. See HSLDA’s Issue Analysis on this topic for more information.

What is HSLDA’s Position on Tax Credits?

HSLDA is opposed to any legislation that would increase regulation of homeschoolers. While government funding of any program is usually tied to a myriad of stipulations (with which one must comply to receive the funding), tax credits are not funding—rather, they are a way of returning the people’s own money to them. HSLDA believes that tax credits can help homeschoolers avoid the burden of double taxation, and in the past has supported most tax credit bills.

 Related HSLDA Articles

Model Education Tax Credit Bill
(Requires Adobe Acrobat Reader)

Basic Information on Education Tax Credits
August 25, 2009

Why are Educational Tax Credits Important?
February 27, 2009

New Tax Credit Legislation Will Benefit Homeschoolers
May 25, 2005

2001 Poll Finds Broad Support for Education Tax Credits
June 15, 2001

The Universal Tuition Tax Credit
April 30, 2001

Three Ways Congress Can Change the Tax Code to Improve Education
April 6, 2001

Education Tax Deduction Update
September 12, 2002