Updated: January 2005
Education Tax Credits - Federal
Issue Description
What is a federal tax credit? A tax credit reduces the amount of tax a taxpayer owes. For example: if $4,000 is owed in taxes, and the taxpayer has spent $500 on educational expenses, that taxpayer can use their educational expenses to reduce the amount owed in taxes. So in this example the taxpayer would subtract $500 from the $4,000 owed in taxes and owe only $3,500 in taxes. Tax credits are not vouchers.
There are currently no federal tax credits for homeschoolers.
Issue Background
HSLDA supports tax credits, so long as the language establishing the tax credit does not set additional burdens on homeschooling parents. Unlike vouchers, tax credits allow homeschooling parents to use their educational expenses to lower the amount of taxes owed. Vouchers, on the other hand, are money for education given by the government. HSLDA believes parents and individuals who provide for a child's education should be allowed to keep some of their tax money that would otherwise have been used to fund public education. This goal could be accomplished through a tax credit.
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