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Indiana – Private School/Homeschool Deduction

Indiana – Private School/Homeschool Deduction

Indiana’s Private School/Homeschool Deduction program was enacted and launched in 2011. It allows parents to receive partial reimbursement for their schooling expenses. Learn more about the program’s details on this page, including eligibility, funding, regulations and more.

Program Fast Facts

  • One of four tax deduction programs for educational expenses nationwide

  • 53,174 participating taxpayers (2015)

  • 9 percent of families with children eligible statewide

  • Average tax deduction: $1,805 (2015)

  • Average deduction as a percentage of public school per-student spending: 19 percent

Program Details

Indiana’s Private/Homeschool Deduction Participation

Tax Returns Claiming Deduction
Tax Year

Click the + symbols to learn more about this program’s details.

Indiana provides a tax deduction for individuals who make educational expenditures on behalf of their dependent children. Any taxpayer who has a child already enrolled in private school or who is homeschooled is eligible to claim up to a $1,000 tax deduction per child for approved educational expenses including private school tuition, textbooks, fees, software, tutoring and supplies.

Student Funding

The tax deduction is worth up to $1,000 per child.

Student Eligibility

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 going to a private school or being homeschooled to receive a $1,000 state income tax deduction. 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 homeschool groups, 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
  • Testing Mandates: None

 

Parent Requirements:

  • 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 dependent child in a private elementary or high school education program, including:
    • Tuition
    • Fees
    • Computer software
    • Textbooks
    • Workbooks
    • Curricula
    • School supplies (other than personal computers)
    • Other written materials used primarily for academic instruction and/or academic tutoring

Governing Statutes

Ind. Code § 6-3-2-22

Legal History

No legal challenges have been filed against the tax deduction.

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