We are registered with the state of North Carolina as The York
Academy. We homeschool our only child and would like to know of the
tax deductions or any advantages for schooling at home.Unless you incorporate as a non-profit you are probably not looking at
any kind of tax break. Or any kind of financial advantage to speak of.
What kind of monetary advantages are you thinking of specifically?Hi LYork,
I just did some research on this subject for one
of my clients. This is what I have learned.
a)As a parent, regular schooling costs are not deductible.
So, home schooling costs, from the parents of the student's
point of the view, should not be deductible, either.
http//www.board.fairmark.com/board1/messages/19233.htm
b) With the new rules on being able to use IRAs to pay for
school tuitions, it may be worth doing some research to
see if any of that money can be used towards home schooling
costs?
c) From the teacher's perspective? You betcha!
You can take deductions for the cost of the educational materials,
books, etc. Justification? In order for the home schooling
to be recognized by the state, the parent has to be certified
to teach (within their own special rules).
There are standards and oversight through the National Association
of the State Boards of Education - see this discussion
http//www.nasbe.org/Educational_Issues/Briefs/Policy_Updates/Gover/homeschooling.pdf.
d) As to the new adjustment to income for teachers, here's the
opinion of the Home School Legal Defense Association - Nope!
http//www.hslda.org/docs/news/hslda/200203144.asp
Various states may have some provisions for home schooling
benefits. I found one legislative proposal in New Mexico - in 1999.
http//www.abqjournal.com/news/xgr99/sum05-06.htm
I didn't follow it to see whether it was enacted.
This should give you a good starting point to substantiate
your right to take some deductions.
Your TaxMama-gaI have found the info I needed elsewhere. ThanksDear LYork,
Thanks for tip.
And that's a great idea - to invite more students.
It will help you cover some of your costs.
You'll also be able to take deductions for office in
home, using the 'daycare' formula on Form 8829
http://www.irs.gov/pub/irs-pdf/f8829.pdf
(See the section for lines 4-6?)
Just remember, if you use those office in home deductions,
while you will save taxes now, when you sell your house,
you'll lose part of the $250,000 ($500 for couples) cushion
on gains on personal residences. But, if you're planning
on being there for the forseeable future....go for it!
Besides, your child will thrive on some company.
Thanks again.
Your TaxMama-ga
December 01st 2008 Posted to
munchsmadonna.com edit