Homeschooling-Tax Credits

Homeschooling-Tax Credits

Tax credits for homeschoolers? How sweet is that? Praise the Lord Jesus. Amen.

As parents become increasingly dissatisfied with the performance of public
schools, alternatives in the form of private, religious, charter, or home
schools are growing in interest. However, the method of education funding
remains a big obstacle between students and the quality education parents seek
for their children. Most parents already pay for their child’s public education
through taxes. When parents choose to educate their child privately they are
effectively paying twice for education — once for a public education they don’t
use and once for a private or homeschool education they do use.
In response
to this problem, lawmakers at both the state and federal level have proposed
varying forms of education tax credits and education tax deductions. They are
designed to rectify the discrepancy by allowing parents to be reimbursed, at
least partially, for tuition and other expenses for non-public education. A tax
credit can be claimed (subtracted) against the amount of tax owed whereas a tax
deduction is subtracted from a taxpayer’s gross income, lowering the total
amount of earnings the final tax is payed on. Typically a credit or deduction
will be equal to the amount of actual education expenses.

Federal
Legislation
As education choice is becoming more popular and vouchers — a
direct governmental grant to private and charter schools — are gaining
prevalence, education tax legislation is increasing in volume on both a federal
and a state level.

Representative Ron Paul (R-14-TX) introduced the
Family Education Freedom Act (H.R. 406) in January 2005 as a federal tax credit
for students at public, private, parochial, religious, or homeschool that would
allow up to a $3,000 credit for tuition expenses. Unique to this bill is its
section on allowing for adjustment in the credit according to a rise in cost of
living. With ten co-sponsors, this bill has been referred to the Committee on
Ways and Means.
The Education, Achievement, and Opportunity Act (H.R. 441),
introduced by Representative

Chris Smith (R-4-NJ) on February 1, 2005,
was also referred to the Committee on Ways and Means. This bill specifies a
$2,500 credit for each child in elementary school and a $3,500 credit for those
in secondary school and is only applicable to those with incomes under the
$150,000 threshold amount, when filing jointly, and a $75,000 threshold in any
other case. This bill does not specifically enumerate homeschoolers as being
eligible to receive the credit, but it is applicable to private, parochial, or
religious school.

Ron Paul voted for this tax credit. He seems so wierd, but that's good to know that he voted in favor of this tax credit for the education of homeschoolers.

But not all states allow this education credit.
Click here to find out if your state allows a tax credit. Ask your tax advisor if your state allows this tax credit for education of your homeschooled child.