Are Private Tuitions Tax Deductible? - Tax Professionals Member Article By Tiffany Gaskin
Posted by Tiffany Gaskin

Are Private Tuitions Tax Deductible?

Are Private Tuitions Tax Deductible?

Private tuition is not tax deductible. Parents with children in private schools are not offered direct tuition tax deductions. However, in 2018, there was a rumor of a change in tax law concerning parents who send their children to a private school to expect tax deductions. Thus, the government should expect less in taxes. It was a rumor and not true, but there are ways to get tax relief. 

Ways to Pay for Your Child's Private School Tuition

File tuition as child expenses

The childcare tax credit offers a tax deduction on nurseries or preschools. The IRS also accepts children in kindergarten and childcare. A parent can file taxes through the IRS Form 2441, where he or she can deduct certain amounts from taxes. A qualified daycare or childcare provider usually costs about $5000 per child. If you have more than one child, you'll be required to use Form 8863 and Form 1040. However, specify the amount used for child support in the tax relief. 


Special needs private school tuition is exempt. 

A disabled child is eligible by the pediatrician to be subject to the tax deduction. The money is considered a medical expense instead of education expenses. The IRS gives this privilege to parents of such children to consider tuition tax deductible. You can take as much as $17500 for two or more kids during a tax year. You're not required to itemize using Schedule A. plus, the grade of the child or children does not matter. However, you have to identify tax deductions as special needs when filing Form 8917.  


Move to a state that does

Many states in the United States accept tax deductions on private tuition. These states provide education support to students through scholarships, up to $5000. You can use the money to pay for a child's private school tuition. Parents with kids in private schools, K-12 or higher, benefit from this offer. Some states include Indiana, Florida, Iowa, Arizona, Virginia, Kansas, etc.

However, the tuition has to be paid in installments to enjoy tax deductions. The privilege may not eliminate the tax, but it mitigates the cost. Each state has laws regarding tax reduction due to educational policy and rules. 

 

Post-secondary private tuition 

If you collect a loan on behalf of your child, an undergraduate in a private school, you can claim it as a tax deduction. This deductible is referred to as tuition and fees deduction. The deduction is made on the interest accrued to the loan. You can enjoy these benefits based on the following conditions:

  • A single taxpayer earns less than $80,000 annually or couples earning $160,000.

  • They remitted more than $600 as part of the loan interest for the past year.

The deductible can be claimed by people with a modified adjusted gross income (MAGI) of $80,000 or less. But you can claim up to $160,000 if your child has a disability. The start point is $50,000, reaching $65,000 but about $602,000 in MAGI. File your taxes using form 8917 together with Form 1040.


Use the K-12 program's payment.

The clarification of tuition tax deduction is written in Publication 970. The paper highlights how to claim tax deductions according to the tax law as an American student in a private school. Claiming a tax deduction is a way to reduce the burden of education expenses as a parent. You'll use Form 8917 to itemize the tuition fees paid during the year. The form also provided space to include other expenses such as books and supplies. 

However, expenses such as accommodation, food, and transport cannot be included as tax deductible. You can earn up to $2,500 for each qualified child. The benefit is only for those who file taxes as single or married. The head of a household takes between $80,000 to $12,000. An HOH earning more than $120,000 annually can enjoy tax deductions through savings.


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Tiffany Gaskin
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