Private School/Homeschool Deduction
- Individual Tax Credit/Deduction
- Enacted 2011
- Launched 2011
Indiana’s Private School/Homeschool Deduction program is a tax deduction for individuals who make educational expenditures for private schools or home schooling on behalf of their dependent children. Learn more about the program’s details on this page, including eligibility, funding, regulations and more.
We do not administer this program.
Participating Taxpayers (2020)
of Families with Children Eligible Statewide
Average Tax Deduction (2020)
Average Deduction as a Percentage of Public School Per-student Spending
Indiana’s Private/Homeschool Deduction Participation
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.
EdChoice Expert Feedback
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. 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 deduction funding cap would be a positive step in that direction.
Rules and Regulations
- Income Limit: None
- Prior Year Public School Requirement: None
- Geographic Limit: Statewide
- Enrollment Cap: None
- Individual Deduction Cap: $1,000 per child
- Testing Mandates: None
- Must claim the deduction on their annual state tax return or returns in a manner prescribed by the Department of Revenue
- Must claim only unreimbursed education expenditures made in connection with enrollment, attendance or participation of a dependent child in a private elementary or high school education program, including:
- Computer software
- School supplies (other than personal computers)
- Other written materials used primarily for academic instruction and/or academic tutoring
No legal challenges have been filed against the tax deduction.