Although most of the IRS tax deductions are concerning post-high school education, teachers can deduct $250 for qualifying non-reimbursed expenses. If a home schooling parent works even part-time for the school district, she is eligible for this deduction. Many home schooling families belong to nonprofit home schooling organizations and any donations given to these are eligible for a charitable donation tax benefit. Any educational materials donated to any nonprofit organizations are also eligible for a charitable donation tax benefit.
Any expenses incurred for the education of learning disabled children can be considered a deduction if the expense is solely to help overcome a learning disability. Many children with severe ADHD or other learning impairments are often home schooled due to the benefits of being in a one-on-one environment.
Some state governments do allow certain tax credits for home schooling to be applied to your account if you live in their respective states. Illinois, Iowa and Minnesota each have state regulations for mainly low-income families that allow tax credits for certain educational expenses that can apply to home schooling families. Arizona, Georgia, Florida, Indiana and Pennsylvania have Scholarship Tuition Organizations that families can donate to and receive a tax credit that applies to K-12 education.
Although most home schooling families are interested in receiving tax breaks for their educational needs, many are concerned that any tax benefit will allow the government an open door to start regulating education done at home. Home schooling families do take advantage community resources such as libraries, parks, and even some school programs such as sports and music programs and are using resources that their taxes pay for.
Coverdell Educational Savings Accounts for children grow tax free, and any withdrawals made for educational expenses are not taxed, even for elementary and secondary education. Total contributions for the year cannot exceed $2,000. However, anybody can contribute funds to the account, which is useful for grandparents, aunts, uncles and other friends to contribute to a child's educational needs.