Is private school tuition tax deductible?

Is Private School Tuition Tax Deductible?

What is the school tuition fee?

You will often find parents discussing the amount of money that they pay for their child to attend a school, college, or university. This can be a significant expenditure if the child is attending a private school. 

In the United States, Public School is free to attend for students living in the same district, while private schools charge fees from the parents of their students. However, there are some exceptions to this rule such as dependent child benefits, Coverdell Education Savings Accounts and American Opportunity Tax Credit (AOTC).  But it depends on the eligibility of the parents. 

Tuition fee varies from school to school, institution to institution, and university to university. Some schools may offer discounts or financial aid to help students cover the cost of tuition. The tuition fee is charged on a per-credit or per-semester basis, and it covers the cost of instruction, academic materials, and other resources that the institution provides to students. 

Is private school tuition tax deductible in the US?

Now, one question that parents often ask is whether private school tuition is tax deductible in the US.

Private school tuition is not tax-deductible. However, there are some exceptions to this rule.

One exception is if you are using the tuition payment to cover education expenses for a dependent child, which includes children under the age of 18 and those who are over the age of 18 but are unable to support themselves due to a physical or mental disability. 

Dependent children may be eligible for certain benefits, such as the child tax credit, which is a tax credit that is available to parents and guardians who have dependent children. 

In addition, dependent children may also be covered under their parent or guardian’s health insurance policy. In this case, you may be able to claim the tuition payment as a dependent care expense on your tax return, if it meets the criteria for the dependent care tax credit. 

To claim this credit, you must have paid for the tuition expenses while you were working or looking for work.

Does private school count for the child tax credit?

Federal tax law doesn’t allow the deduction of private school tuition to lower an individual’s federal tax liability for private K–12 educational expenses. Most of the federal education-related tax credits and deductions are geared toward higher education and career-furthering continuing education, but there are other federal programs, such as Coverdell Education Savings Accounts, that help parents save money on K–12 private schooling indirectly.

If your child is attending a private school for special needs, you may be able to get a tax break on your K-12 private school tuition.

One option is the tuition and fees deduction, which allows you to deduct the cost of tuition and certain other education-related expenses from your taxable income. The deduction is worth up to $4,000 per year and is available to individuals with MAGIs of up to $80,000 for single filers or $160,000 for joint filers.

It’s important to note that eligibility for these credits and deductions may depend on a number of factors, such as your income, the type of educational expenses you are paying for, and whether you are paying for a degree program or other educational expenses. 

You should consult with a tax professional or refer to the Internal Revenue Service (IRS)  guidance to determine whether you may be eligible for these credits and deductions.

American Opportunity Tax Credit (AOTC) 

Another option is the AOTC which is available to parents and students who are paying for tuition and other educational expenses for a degree program. 

In addition, parents and guardians may be able to claim the tuition and fees deduction, which allows them to deduct the cost of tuition and certain other education-related expenses from their taxable income.

The AOTC is worth up to $2,500 per student per year and is available to individuals with modified adjusted gross incomes (MAGI) of up to $90,000 for single filers or $180,000 for joint filers.

It’s important to note that eligibility for these credits and deductions may depend on a number of factors, such as your income, the type of educational expenses you are paying for, and whether you are paying for a degree program or other educational expenses. You should consult with a tax professional or refer to IRS guidance to determine whether you may be eligible for these credits and deductions.

Where can you find the detailed information?

The Internal Revenue Service (IRS) website – provides the details about the child tax credit, which is available to parents and guardians who have dependent children under the age of 17. 

  • It says that the Child Tax Credit is a fully refundable tax credit for families with qualifying children. 
  • In 2021, the American Rescue Plan expanded the Child Tax Credit to get more help to more families. 
  • The credit increased from $2,000 per child in 2020 to $3,600 in 2021 for each child under age 6. 
  • For each child aged 6 to 16, it’s increased from $2,000 to $3,000. It also provides $3,000 credit for 17-year-olds. 
  • The families don’t need to have income or a permanent address to claim this tax credit if they’re eligible.

In general, there is no federal education credit or deduction when paying for a private school at the elementary or secondary level. However, you can claim a tax credit for private schools if you pay for your children’s college tuition.

Any type of tax is a niche area and if you are an American citizen, it is advisable to consult the IRS expert or visit the IRS website, which has all the details.   

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