You Could be Saving $500 a Year on Your Tuition

 Your children learn about money. You can too!

Your children learn about money. You can too!

Private, Catholic education can be a major investment, but did you know that there are ways to make it more affordable? Over the next few posts, will explore a variety of options, ranging from government tax credits to scholarships, that could be helpful to you and your family in your choice of supporting Catholic education.

Today’s topic: Educational Tax Credits

What is a tax credit?

A tax credit is a reduction in the income tax you owe to the state and federal governments. Usually the credits are applicable to behaviors or expenses that the government deems important, in this case education.

How do I qualify for a tax credit?

Like all tax credits, there are some restrictions. For educational tax credits, there are three basic requirements:

1.  If you were the parent or legal guardian of a full-time student who was under the age of 21 at the close of the school year

2.  You and your student were Illinois residents when you paid the expenses

3.  Your student attended kindergarten through twelfth grade at a public or nonpublic school in Illinois during the tax year

What qualifies as an educational expense?

Necessary expenses like tuition, book fees or lab fees for supplies, equipment, materials or instruments that are required as a part of the main curriculum are considered expenses and would be creditable.

How much money can I get back?

In the state of Illinois, you will be allowed 25 percent of your student’s qualified education expenses after the first $250. Your total credit may not exceed $500 in any year, regardless of the number of qualifying students.

How do I get my tax credit?

Visit the Illinois Department of Revenue website to obtain the necessary Schedule ICR form to attach to you 1040 when you file your taxes.

For more information about tax credits, use the document linked here produced by the Illinois Department of Revenue.