Illinois homeschool tax credit guide for parents

Illinois still has one homeschool-friendly break on the state return: the Education Expense Credit. It is not an ESA, and it is not the old Invest in Kids donor credit.

Invest in Kids expired December 31, 2023. Contributions after that date do not earn that credit. Carryforward from a 2023 gift can still appear on later returns, through 2028 for a calendar-year filer. [1]

The credit you claim as a parent is 25 percent of qualifying K-12 expenses after the first $250, capped at $750 per family. IDOR Publication 112 is the rulebook for home schools. [2]

The federal Scholarship Tax Credit (Section 25F) starts January 1, 2027. It is a donor credit of up to $1,700 for gifts to scholarship-granting organizations in 31 participating states. Illinois is not on the IRS participating-state list as of September 14, 2026. [3]

Fall checklist: what still files, what does not

• Invest in Kids: expired. Do not donate expecting that Illinois credit.
• Education Expense Credit: still files on Schedule ICR with your IL-1040.
• FSTC: donor path in 2027, and only in 31 participating states. Illinois is not one of them yet.
• Receipts to keep this fall: date paid, vendor name and address, item description, amount, parent name. IDOR will not take a cancelled check as a homeschool receipt.
• Class notes: one line on how a live class or consumable fits your required curriculum, if you plan to claim it.

For the national picture, see our homeschool tax credit overview, the federal scholarship tax credit guide, and what an ESA is.

Who qualifies for the Education Expense Credit

You may figure the credit if you were the parent or legal guardian of a full-time student under 21 at the close of the school year, you and the student were Illinois residents when you paid, and the student attended kindergarten through twelfth grade at a qualifying Illinois school, including a home school that meets Section 26-1 truancy rules. [2]

Income limits: federal AGI under $500,000 married filing jointly, or $250,000 for other filers. Separate Illinois returns cannot double-count the same expenses, and the combined credit cannot exceed $750.

If you are new to the state's homeschool setup, start with our Illinois homeschool guide.

What kinds of expenses count

Publication 112 treats home schools differently from brick-and-mortar schools. Knowing the homeschool column saves a January scramble.

Expenses you can claim

If you homeschool, these costs typically qualify as long as they support your child's core education:

• Tuition paid for K-12 instruction, including fees for physical education at a private facility like a health club
• Fees for student workbooks or teacher's grade books that get significantly used up during lessons, even if bought from an out-of-state company
• Rental fees for books required by your homeschool curriculum
• Rental fees for curriculum materials, such as recorded lectures
• Lab fees for supplies, equipment, or materials needed for hands-on courses, if the item is mostly used up
• Shipping costs and sales or use taxes paid on a qualified item

A note on online classes: tuition for lessons that meet your homeschool's core educational requirements can count. If an Outschool class covers a required subject in your plan, that tuition may qualify. Save the receipt and a short note on how the class fits.

Expenses you cannot claim

• Items that do not get significantly used up, like non-consumable textbooks, flash cards, wall maps, or calculators
• Anything that stays personal property at the end of the year, like a purchased musical instrument
• Mileage or travel costs
• Tutoring or enrichment classes that are not part of your required curriculum

Browse homeschool classes if you want a teacher-led block in a core subject.

How much you can claim

You claim 25 percent of qualifying expenses after the first $250. The family cap is $750, no matter how many kids. Reaching $750 takes at least $3,250 in qualifying spend. The credit is nonrefundable. It only reduces Illinois income tax you already owe. [2]

FSTC is not this credit

FSTC is a donor credit of up to $1,700 starting January 1, 2027, in 31 participating states. Illinois is not on the IRS list as of September 14, 2026. Do not mix it with Schedule ICR. Read the FSTC homeschool guide if you donate in a participating state.

How to file

Complete Schedule ICR with Form IL-1040. Homeschool filers attach receipts that show type and amount, calendar year, business name and address, and the parent who paid. Cancelled checks do not count. [2]

FAQ

Can Illinois homeschoolers use Outschool classes as a qualified expense?

They can, when the tuition supports a required subject in your home-school plan. Enrichment that sits outside the required curriculum often does not qualify. Keep the receipt and a one-line curriculum note.

Is Invest in Kids still open?

No. It expired December 31, 2023. Only unused credit from an eligible 2023 contribution can still carry forward. [1]

Does Illinois have an ESA?

Not a statewide ESA like Arizona or Florida. The Education Expense Credit is a tax credit on the Illinois return. See what an ESA is if you are comparing states.

What if we file separate Illinois returns?

Each parent can claim a credit, but not on the same expense, and the combined total cannot exceed $750.

Sources

[1] Illinois Department of Revenue. Invest in Kids. https://tax.illinois.gov/programs/investinkids.html

[2] Illinois Department of Revenue. Publication 112, Education Expense Credit General Rules. https://tax.illinois.gov/research/publications/pubs/education-expense-credit-general-rules.html

[3] IRS. Federal Scholarship Tax Credit (FSTC), participating states as of September 14, 2026. https://www.irs.gov/government-entities/federal-state-local-governments/federal-scholarship-tax-credit-fstc

When you want a live class that can sit in a core subject, browse homeschool classes on Outschool.