Taking your child’s learning into your own hands through homeschooling is a meaningful commitment, and sometimes, a big investment too. Books, materials, and extra lessons can stretch your budget quicker than you might expect. Thankfully, Illinois offers an Education Expense Credit to help families at tax time.
We’re here to help you navigate how the credit works, who’s eligible, and what steps to take so you don’t miss out on these savings. Alongside thoughtful planning and careful record-keeping, you can also explore Outschool’s live classes to enrich your child’s learning experience and make the most of your homeschooling plan.
What is the Illinois Education Expense Credit?
The Illinois Education Expense Credit allows parents to claim a portion of what they spend on qualifying K-12 education expenses each year. Whether your child learns at home, attends a private school, or is enrolled in a mix of programs, certain costs like tuition, book rentals, and lab fees can count toward this credit.
While it won’t cover every dollar you spend, this credit can help stretch your homeschooling budget further and reduce your tax bill, helping you keep more of what you earn. The following sections will break down who can claim it, which expenses qualify, and how to make sure you’re getting the most out of this helpful support.
Who qualifies for the Education Expense Credit?
Not every Illinois family automatically qualifies for this tax credit, so it’s important to check a few key requirements before planning to claim it. Here’s what you need to know:
- Parent or guardian status: You must be the parent or legal guardian of a student you can claim as a dependent on your Illinois tax return.
- Student requirements:
- Your child must have been a full-time student during the tax year.
- They must be under the age of 21 at the end of the school year.
- They must have attended a qualifying Illinois school—this includes public, private, or home schools that follow state truancy laws.
- Residency: Both you and your student must have lived in Illinois when the educational expenses were paid.
- Income limit:
- Married parents filing jointly must have a federal adjusted gross income under $500,000.
- All other filers must have an income under $250,000.
- Minimum spending: To be eligible, you must have spent more than $250 per child on qualifying educational expenses during the tax year.
- One credit per expense: If you and your child’s other parent file separate Illinois tax returns, you both may claim the credit, but you cannot claim the same expense twice, and the combined total credit between both parents cannot exceed the state limit.
Keeping these basics in mind will help you figure out if you can take advantage of this helpful tax break. In the next section, we’ll look at exactly what expenses count toward the credit, so you can plan and track them with confidence.
What kinds of expenses count?
Knowing exactly what you can and can’t claim makes the Illinois Education Expense Credit much easier to navigate. Here’s a quick breakdown for homeschool families:
Expenses you can claim
If you homeschool, these costs typically qualify as long as they support your child’s core education:
- Tuition paid for your child’s 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 or lessons on DVDs or tapes.
- Lab fees for supplies, equipment, or materials needed for hands-on courses. If something gets mostly used up during lab activities, it usually counts.
- Shipping costs for getting qualified items delivered to you.
- Sales or use taxes paid when buying qualified items.
Expenses you can’t claim
Some expenses don’t meet the requirements for the credit, even if they’re helpful for learning:
- Items that don’t get significantly used up during class, like non-consumable textbooks, flash cards, wall maps, or calculators.
- Anything that will remain the child’s personal property at the end of the school year (for example, a purchased musical instrument or sports gear).
- Mileage or travel costs for getting to school, labs, or field trips.
- Tutoring or enrichment classes that aren’t part of your required curriculum.
Keeping receipts and clear notes on what each purchase supports will make filing for the credit much smoother.
How much can you claim?
Once you know your homeschool expenses qualify, it helps to see how the numbers work. Here’s a quick overview of how the Illinois Education Expense Credit is calculated:
- You can claim 25% of what you spend on qualifying K–12 homeschool expenses, but only for the amount over the first $250 per child.
- The largest credit you can get each year is $750 per family, no matter how many kids you have.
- To reach that $750 maximum, you would need to spend at least $3,250 in total qualifying expenses during the year.
- One thing to note: This credit is nonrefundable and only reduces the amount of Illinois state income tax you owe. It won’t result in extra money back if you don’t owe enough taxes to use it all.
For many, this credit can be a helpful boost at tax time. However, every family’s finances are different. If you’re unsure how this works for you, it’s best to check in with a tax professional or financial advisor to get advice tailored to your situation.
How to claim the Illinois Education Expense Credit
Putting this credit to work for your family is easier when you’re prepared. Once you know you qualify and have your expenses tracked, it’s just a matter of gathering the right paperwork and filling out the correct forms.
Here’s a simple breakdown to help you claim your credit with confidence:
- Keep detailed receipts: Hold onto every receipt that shows what you purchased, how much you paid, the date, and who you paid. For homeschool expenses, your receipts should clearly list what you bought and how it supports your child’s learning. A cancelled check alone does not count as a receipt.
- Complete Schedule ICR: When you’re ready to file your Illinois tax return (Form IL-1040), fill out Schedule ICR (Illinois Credits). This includes a worksheet to help you calculate your Education Expense Credit step-by-step.
- Attach your documentation: Submit Schedule ICR with your tax return. If you homeschool, attach copies of your receipts that show your qualifying expenses. Each should include:
- The year you paid
- The business name and address
- A description and amount for each item
- The parent or guardian’s name
- Save your records: Keep your receipts and tax forms stored safely in case you ever need to back up your claim.
With a little organization, you can claim this helpful tax break each year and keep more of your hard-earned money for your family’s learning journey.
Frequently asked questions (FAQs)
If you’re planning to claim the Illinois Education Expense Credit for homeschooling, a few common questions often come up. Here’s a quick guide to help you feel more prepared and confident as you track expenses, file paperwork, and plan your homeschool budget.
Can I claim the Illinois Education Expense Credit if my child is fully homeschooled?
Yes. Homeschool families can claim the Illinois Education Expense Credit if they pay for qualifying expenses like curriculum rentals, workbooks, or lab fees. Your homeschool must meet Illinois’ truancy law requirements to count as a qualifying school. Make sure you keep detailed receipts for everything you plan to claim.
Do online courses qualify for the Illinois Education Expense Credit?
Online courses can count toward the credit if you pay tuition for lessons that meet your homeschool’s core educational requirements. For example, recorded lectures or class subscriptions that cover required subjects may qualify. Be sure to save receipts that show precisely what you purchased and how it fits into your child’s curriculum.
What if my spouse and I both file Illinois tax returns?
If you and your child’s other parent or guardian file separate Illinois tax returns, each of you can claim an Education Expense Credit, but you cannot claim the same expenses twice. The combined total credit between both parents cannot exceed $750 per family. It’s smart to coordinate and decide who will claim which expenses to avoid any mistakes.
What receipts or records do I need to keep?
You’ll need clear proof for each expense you claim. Receipts should show the date, amount paid, what you purchased, and who you paid. For homeschoolers, also keep a note or file explaining how each item fits into your child’s educational plan in case you ever need to show more detail.
How do I know if I’m claiming the right expenses?
Qualified expenses must be directly related to your child’s required educational instruction. This includes rentals for books and curriculum, lab fees, and workbooks that get used up during the school year. If you’re unsure whether something counts, talk with a tax advisor or check the Illinois Department of Revenue’s guidelines before filing.
Supporting your homeschool journey
Every homeschool family deserves tools and resources that make home education rewarding and cost-effective. The Illinois Education Expense Credit is one way to ease the cost of providing a personalized, high-quality education for your child.
Pair this benefit with flexible learning from Outschool, where you can find live classes, tutoring, and engaging topics that fit your goals and budget. Together, these resources can help you build a learning plan that works for your child and your family’s finances.
More resources for Illinois homeschoolers
Looking for more information? Our guide to homeschooling in Illinois is a great place to start.
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