Private School/Homeschool Deduction

Indiana’s Private School/Homeschool Deduction program is a good example of providing increased opportunity to parents without unduly burdening participating providers. The legislation permits all families with a child attending a private school or being homeschooled to receive a $1,000 state income tax deduction for each child in private school or homeschooling. _(Last updated June 10, 2024)_

Qualifying expenses include tuition, fees, computer software, textbooks, workbooks, curricula, school supplies, and other written materials used primarily for academic instruction and/or academic tutoring. _(Last updated June 10, 2024)_

The tax deduction is worth up to $1,000 per child. Families can take tax deductions for multiple children. Deductions are available for parents’ expenditures on either private schools or homeschooling for their children, including private school tuition, textbooks, fees, software, tutoring, and supplies. However, the tax deduction does not, in a practical sense, provide for increased choice or opportunity. It is a very small amount when compared with the costs of private school tuition or time and curriculum required in the homeschool environment. The program does not place additional requirements on the private or homeschooling groups or schools, however. For this program to have a truly meaningful effect on families, the cap on the deduction would need to be increased dramatically. Moving closer to Wisconsin’s higher deduction funding cap ($4,000 per child in grades K–8 and up to $10,000 per child in grades 9–12) would be a positive step in that direction. _(Last updated June 10, 2024)_

No legal challenges have been filed against the tax deduction. _(Last updated September 12, 2024)_