Knights Becoming and a Lady in Waiting

Illinois Educational Credit

9:57 AM, Feb. 21, 2006 .. Posted in Illinois Homeschooling .. 1 comments .. Link

Because it seems to be necessary nowadays, here's the disclaimer: I am not a tax official or legal expert. This is offered just as advice and I can't be held responsible for anyone's decisions based on this information. [Bleh. Talk about silliness.]

Here is what I have learned about the Educational Tax Credit for the state of Illinois:

FROM 2002

http://i2i.org/articles/2002-F.PDF

"A nonrefundable tax credit is available for 25% of education-related expenses, including tuition, books, and lab fees that exceed $250. The maximum amount of credit an individual can claim is $500, for educational expenses in public, private secular or religious school, or homeschool."

Illinois Compiled Statute 35 ILCS 5/201(m) http://www.legis.state.il.us/ilcs/ch35/ch35act5articles/ch35act5sub2.htm

(I could not get this website to work)

PUBLICATION 119- FROM AUGUST 2005

http://www.revenue.state.il.us/Publications/Pubs/PUB-119.PDF

My paraphrase: Qualified expenses are any paid in amounts OVER $250 for tuition, books, and lab fees for students in K-12th grades at a home school during the regular school year. Tuition includes classes paid for the child to satisfy P.E. requirements at a health club, fees for the purchase of workbooks that are substantially consumed (have little or no resale value), book rental fees, curriculum rental fees (DVD rentals or tape rentals of lectures included), or lab fees, including science, music, art or language. Equipment, instruments or materials that are SUBSTANTIALLY CONSUMED by the activities of the lab are also qualified lab fees. Shipping charges and sales tax also applies.

What doesn't apply?

* Non-consumable textbooks, flash cards, wall maps, calculators, etc.

* Band or athletic equipment IF PURCHASED (rental counts!)

* Mileage or travel expenses

* Tutoring or enrichment classes that do not count toward meeting required curriculum

You must attach receipts (NOT cancelled checks) for all of these expenses that show:

* type and amount of education expenses paid for each student during the year

* calendar year during which the expenses were paid

* name and address of the business to whom the expenses were paid

* the name of the parent or guardian who paid the expenses

SCHEDULE ED- Credit for K-12 Educational Expenses http://www.revenue.state.il.us/taxforms/incm2004/ind/il1040ed-fillin.pdf

Educational Expense Credit for Individuals- Bulletin http://www.revenue.state.il.us/publications/bulletins/2000/Fy2000-19.pdf

From everything I've read, this would mean:

- most books purchased will NOT qualify for credit, but workbooks, art material, consumable science material might

- PURCHASE of band instruments, music, etc, would not qualify, but RENTAL of such might

- PURCHASE of DVDs, VCR tapes, cassette tapes, or CDs would not qualify, but RENTAL of such might

Christian Liberty Academy (http://www.homeschoolfreedom.org/class.pdf) is asking Illinois homeschoolers to NOT take this tax credit, even if you qualify, because "doing so increases the risk of greater state regulations for all homeschoolers." Also, according to an official at the Illinois Dept of Revenue, tax credits claimed by homeschoolers are double-checked... and often turned down (http://www.homeschooling-wpa.org/leaders/homeschool-tax-credit.html).

I hope this helps all of you who (understandably!) have questions in this regard.