Homeschooling Tips: When You Need to Receive Homeschooling Tax Credits

Wouldn’t we like to know about the tax benefits available for homeschooling? Homeschool lessons could be expensive. Traditional school teachers are subject to receiving tax credits from the federal governments, but is this the same for home school teachers? As usual, homeschool teachers don’t seem to find the same favor with lawmakers. Let’s find out if home school teachers fall into the tax credit category.

Teachers are subject to tax benefits received of $200 against federal taxes. It sure is a wonderful law, but only if you are teaching in a public or private school. But this is where the party ends, parents who teach their own children do not have access to similar benefits of tax credits. The law is clear in this context that you must work in an accredited school (federal agencies check W2 or 1099) and this checks the budget for unpaid out-of-pocket and out-of-class expenses.

In case you do not have direct employment in a school and you are a home school teacher, and as is the case in most cases, the school is also not an accredited one. So, I’m sorry to say, but you fall into one of those categories that qualifies for these tax credits. Do not make any attempt to get the very thought that will escape. The IRS is like a police and they know that homeschoolers are behind this. It gets you caught and then forced to pay taxes.

For those who have children with additional needs, these parents can take advantage of tax credits. Those children who have some minor inclining issues to not qualify, such tax credits are intended for those children who have serious problems that make them highly dependent on others even for their basic needs. Children who cannot do without health care, who need specialized caregiver teachers, and who have other special needs fall into this category.

There are few variations in tax credits, in case your child suffers from muscular dystrophy, severe autism, Down syndrome or other disabilities like deafness or blindness then the tax credit application should be granted. This should come as a relief to most, as providing these children with proper care is a daunting task. Such credits are applicable for medical and homeschool costs as well.

In addition to these credits, there are a few more that can be received from the state for homeschooling. To do this, you must verify your state’s tax code before claiming tax credits. One sure way to qualify for the tax credit is to open a 529 account for your child’s post-secondary or college education.

North Carolina allows you to pay less in 529 contributions up to $7,500 for tax year 2007. Find out if the state you live in also has other benefits. The credits are for both parents and grandparents, so check the information. 529 accounts are not just limited to homeschools, but even grandparents or anyone who has a child can have such an account.

If you look at the big picture, home schools have a hard time receiving tax credits. Of all this, there is a very small sum to be obtained, so be sure to take the guidance of a professional to secure your tax credits.