What
Are Tuition Tax Credits and Tax Deductions?The following are answers to frequently asked questions (FAQ) regarding private scholarship programs and tuition tax credit / deduction programs. The answers to these FAQs are intended to provide only an introductory overview of key issues. Links are provide to take you to areas with additional information.
What
Are Tuition Tax Credits and Tax Deductions?
School tax credits refund expenses made toward education up to a fixed figure. Tax deductions minimize the expense of education by making them itemized deductions. The qualifying criteria covers educational expenses such as tutoring, texts, and computers, and, in the states that have them so far, private school tuition. State legislation determines the amount of credit and what can be included in the deductions. It also states whether private school tuition qualifies.
Won’t
Tax Credits Only Benefit the Wealthy?
At great personal and financial sacrifice, many low-income families are making choice to send their children to a private school, and tuition tax credits can often help them continue to provide that opportunity to their child. Data on school enrollment show that families with incomes of $35,000 or less represent 25 % of all families with children in private schools; 66 % of all families with children in Catholic elementary schools; and 45 % of all families with children in Catholic high schools. These families make significant financial sacrifices to provide their children with a good education and would greatly benefit from increased school choice provisions.
Where
Can I Find Them?
Limited school tax credits/deductions (that include private school tuition) exist Minnesota and Iowa. Arizona offers a tax credit for donations to privately funded voucher programs. Illinois, Indiana, Michigan, and Wisconsin are giving tax credits serious consideration. South Dakota, Utah, Virginia, Idaho, Maryland, Missouri, and Oregon have reviewed the idea.
For More
Information, See About School Choice.