Private School Tuition

[Christian]

A client called today stating he and his wife have taken their child out of the local public school system and are going to be paying some $6,000 per year for home schooling. He wanted to know if this  is a deductible expnse. In so far as I know it is not a deductible expense on the federal or Virginia return. I plan on looking a bit closer but I do not think I will find any law change which permits it's deuction. He asks if it may qualify for the child care credit but had I to nix that idea as well. If any of you know that this reading of the law is incorrect please advise.

[BulldogTom]

I think they can use a 529 plan for those expenses, but that is just off the top of my head.   You would have to research it more to be sure.

I don't think there are any federal tax credits allowed for home school expenses.

Tom
Modesto, CA

[Christian]

I find no federal deduction. As best I can determine they can contribute to a Virginia 529 plan. Each parent would need to establish an individual plan into which the max contribution is $2,000. This money plus accrued interest could then be withdrawn tax free to fund the child's private school tuition. How soon after setting up the plan the funds can be withdrawn I do not know and the parents will need to carefully review the plans with their fiduciary to iinsure no slippage in the rules.

[Lee B]

You can also do a Coverdell ESA in addition to the QTP.

[Margaret CPA in OH]

I think you need to also check for any state limits on the grade that can be used as some restrict to high school.  And whether home school applies - I would be surprised but lots of things surprise me these days!

[Lee B]

I have no idea about VA, but in Oregon, the largest home school organizations are state sponsored.

[Catherine]

There are also online *schools* now.  While there is no federal credit for online or private schools, for all I know there may be state provisions.  So make sure it's home-school, not online private school.  Homeschooling curricula don't cost anywhere near $6,000 (unless they've all seriously jacked up their prices all of a sudden).  Demme Learning's math program is a couple hundred bucks for a full-year program.  Analytical grammar is less than $150 for a year.  Calvert's all-in-one plan is $400/year for 1 kid or $700 for three kids.  So I wonder what they're spending $6K for.