Sessions for homeschool leaders at the Midwest Homeschool Convention
April 16, 2012
Anyone going to the Midwest Homeschool Convention in Cincinnati this week?
There is a session on Thursday April 19, 2012 from 2-3 pm just for group leaders with Jen Henricksen, a seasoned homeschool group leader.
Register here (free) http://www.greathomeschoolconventions.com/group-leader-track.
They’re giving away a laptop!
Also, I’ll be giving a workshop on Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out on Friday at 2:30 pm
and another workshop, The IRS and Your Homeschool Organization on Saturday at 10 am.
Grab a copy of the handouts here.
I hope to meet some of you there!
Any Tax Breaks for Homeschoolers?
March 25, 2012
Since tax season 2012 has officially launched, I’ll address a question I am frequently asked,
Do homeschoolers get any tax breaks for their homeschooling expenses? Can a homeschool family deduct any of their homeschool expenses?
The simple answer is “No; there are no tax credits for homeschool expenses from the federal government.”
The longer answer is “Maybe, depending on what state you live in.”
Several states have an educational tax credit. Iowa, Arizona, Minnesota and Illinois all have some sort of tax break for individuals. The credit is available to any public or private school student, so it is not unique to homeschoolers. Florida and Pennsylvania offer businesses tax credits if they sponsor a scholarship.
This document has a chart of education tax credits and deductions by state (updated November 2008). Scroll to page 6 to see the chart.
http://www.house.leg.state.mn.us/hrd/pubs/feelaw.pdf
Home School Legal Defense Association has an explanation of some states’ tax breaks or credits:
http://www.hslda.org/docs/nche/000010/200504150.asp
Homeschoolers can get creative and think perhaps they can start a business or a nonprofit organization of their homeschool activities and then deduct their expenses. Ann Zeise of A to Z Home’s Cool addresses these ideas:
http://homeschooling.gomilpitas.com/articles/031401.htm
You cannot contribute to your own child’s K12 education and get any tax deduction for it, no more than if you sent him to a private school and tried to write off the tuition.
Carol Topp, CPA
“Digital image content © 1997-2007 Hemera Technologies Inc., a wholly owned subsidiary of Jupiter Images Corporation. All Rights Reserved”.
New feature for blog posts
February 13, 2012
I’ve been blogging here at HomeschoolCPA.com for about four years. There’s over 200 blog posts here, most of them questions from homeschool leaders.
I frequently receive a question and think, “I’ve answered that question before…where it is on my blog?” I sometimes have trouble finding the answer. If I have trouble finding the answer in over 200 posts, I’m sure that you do too!
So I have just added a handy tool to help you out: Related posts
At the end of each blog post, you will find 5 related posts based on the category and key words in the post.
For example, in my blog post of June 3, 2011 titled:
Do not use individual fund raising accounts
you’ll now find these related posts at the bottom of the page:
Related posts:
- The IRS and Fund Raising
- Update on the IRS and Booster Club Fundraising
- Can my individual homeschool have a fund raiser?
- What does the IRS mean by not allowing “private benefit” in a fund raiser?
- Individual fundraisers and homeschool groups
I think that will help you a lot!
Carol Topp, CPA
HomeschoolCPA.com
Cleveland/Akron: Attend a live taping of Starting a Micro Business!
February 5, 2012
You can be part of a national TV production studio audience!
The Burton D. Morgan Foundation and Western Reserve PBS (formerly PBS 45 & 49) invite students and parents interested in youth entrepreneurship to be part of the studio audience for the national production Micro Business for Teens: Starting a Micro Business.
WHO
Students in grades 7-12, parents, educators and anyone working in youth entrepreneurship. Bring a group or come on your own!
WHAT
The taping of Western Reserve PBS’s Micro Business for Teens: Starting a Micro Business, a practical how-to television production that will walk teens and their parents and teachers through steps that can lead to the launch of a successful micro business. The program is hosted by Carol Topp, CPA, author of the Micro Business for Teens book series on which this TV show is based.
WHERE
Wright-Curtis Theatre at Kent State University.
WHEN
Thursday, February 9, 2012, from 6 p.m. to 9 p.m.
LIMITED SEATING — first-come, first-served. Groups are welcome!
YOUR RSVP IS REQUIRED TO ATTEND. PLEASE RESPOND AS QUICKLY AS YOU CAN!
Call Jessie Springer at 1-800-554-4549 or email her at JSpringer@WesternReservePBS.org<mailto:JSpringer@WesternReservePBS.org>. You’ll need to provide names, addresses and phone numbers of all people attending with you.
FOR MORE INFORMATION
For more information on what the studio audience does, what to wear, and program air dates, please see the attached flyer or visit http://www.westernreservepublicmedia.org/micro.htm.
Kindle editions to Paying Workers and IRS and Your Homeschool Organization
November 29, 2011
I’m pleased to announce that two of my books are available for the Kindle:
Paying Workers in a Homeschool Organization Kindle price $2.99
The IRS and Your Homeschool Organization Kindle edition $3.99
Available here:
http://www.amazon.com/Carol-Topp/e/B00279FSNQ
Don’t have a Kindle? No problem! Read Kindle books on your PC with this free application:
Carol Topp, CPA
Webinar tonight: The IRS and Your Homeschool Organization
October 27, 2011
My webinar is tonight Thursday, Oct 27, 2011 at 8 pm ET
- Homeschoolers and the IRS
- What does 501(c)(3) mean?
- Is it needed for my group?
- The benefits of 501c3 tax exempt status
- The disadvantages too!
- Why your organization should consider becoming a nonprofit corporation
There will be plenty of time for questions (typed into the chat area) or by phone.
This handout of the Slides will be very helpful as you listen in to the webinar:
Paperback book:The IRS and Your Homeschool Organizations
A 120 page book explaining the pros and cons of tax exempt 501c3 status. Is it needed? Is it worth it? Also covered are non profit incorporation, the application process, and how to maintain tax exempt status. Written specifically for homeschool groups.
Table of Contents
Read Sample Chapter One
Price: $9.95
Using Facebook for your homeschool group?
September 20, 2011
Some homeschool leaders over at the Facebook group I am a Homeschool Group Leader were discussing using Facebook as a way to communicate with their members:
Does anyone use Facebook to connect your group members? Do you have a FB group or just a page? What are the pros/cons of each? So many people are on FB now, but is there any benefit to using FB when we already have a Yahoo Group and a website?
We do NOT have a Facebook page for our group. I have not pushed the issue since most of the other board members are very concerned about privacy and have told me that they hate Facebook. However, I do create events for some of our functions that are open to the public, invite people, and ask them to pass the word along. Every time i do this I usually have a couple of people come because they heard about it on Facebook.-Lori C.
We actually started a high school student council FB page. It is ‘secret’ from everyone except members. Parents and students can join the group. Right now, it’s not hugely active, because not everyone is on FB and there is some disagreement about this being a good way to communicate. We do also send out emails and post on our website forums all the student council info as well.-Abby
I set up a FB group for our group and that was the worse thing I could have done. None of the ladies knew each other before I created the group. They used FB to friend each other and then started meeting behind my back which ultimately lead to the all of them teaming up against me to start their own group. I guess it just depends on the type of people you are dealing with.-Amy
We set up a FB group last year and it has been very effective. Pretty much use it to post events. I like how the events give reminders. We are not a really large group about 25 to 30 families. We also have a yahoo group for those very few that aren’t on FB and are in the process of getting a web page designed. If you are concerned about privacy you can make it a secret group where no one sees it that is not approved in the group. We only allow parents in the group to post on the board.- Jan
We use both a website and FB page. we are able to get in contact with all our members (support group members and co-op members) by both methods. we share are “public” events on FB for all members and then our co-op group activities are posted on the website. it is a lot easier to share links etc on FB. Most of our members are on FB.-Leslie
We got a page last year for our group. Its private, and we screen everyone who wants to join. You would have to know somebody in our group and they can verify and tell us about you. Last year when it was brought up a few people did not like the idea. It was made and most everyone loves it since we can add pictures and other things to it. I feel that it has brought the group closer together instead of just emails thru yahoo. More personable.-Melissa
Helpful links
September 9, 2011
Have you stopped by my LINKS page lately?
I have upgraded it and added a few more helpful books, links and resources for leaders.
Did you know about the blog for homeschool leaders (besides my own blog)?
or how about an on-line support group for homeschool leaders? One exists. The link is on my LINKS page here.
Need some legal help? Go to my LINKS page and find a link to Homeschool Legal Advantage and then read the article about how they helped one group deal with a difficult situation with the IRS.
If you come across any helpful links for homeschool leaders, let me know and I’ll add them.
Carol Topp, CPA
Getting people to help in a co-op
August 16, 2011
I just found out about One-by-One (a book on motivating members in a homeschool group), it sounds like JUST what I need, I’m excited to order it. It’s the biggest struggle and frustration I have, trying to get people involved, committed and to follow-through! Really hoping the book can help me figure out how to get members out of the “give-me” mode!!! How do you ladies accomplish this?
Sorry I’m talking so much. I’m just really excited about what is happening in our group and I want to help others if I can.
We’re not 501c3 and don’t want to be!
August 4, 2011
photo credit: stevendepolo
Our support group has been in existence over 20 years… and we are STILL not a 501(c)(3) …. and don’t want to be!
It would take so much more work, money, etc. to be a 501(c)(3)!!
Many times it is hard for our members to understand this — they think any group who’s not set up as a ‘business’ to ‘make money’ has to be a 501(c)(3). Our group does NOT take donations — membership fees cover our cost of doing business. And they are reasonable — $10 a year, to get our newsletter via email, $20 if you want it printed and mailed to you. We put out a group directory each year, pay for some things like church rental for our Back to School meeting, copies of membership forms & information about homeschooling that we distribute, etc.
Karleen
Conroe, TX
Karleen,
I need to warn you in your some of your assumptions. I’m a CPA and work with homeschool organizations to organize properly and decrease their tax liabilities by obtaining tax exempt status with the IRS.
I answered a leader who asked, “Can’t we operate without IRS tax exemption?” in this blog post:
http://homeschoolcpa.com/cant-we-operate-without-irs-tax-exempt-status/
You wrote: “they think any group who’s not set up as a ‘business’ to ‘make money’ has to be a501(c)(3).”
They are partially correct. If your organization makes a profit, it owes tax unless it is legally tax exempt.
If your group is a nonprofit (i.e. no profit motive) you have one of 4 legal choices:
(see all this in detail on my website http://homeschoolcpa.com/group-over-the-5k-limit-what-to-do/
1. Stay small and remain under the IRS threshold for filing for 501c3 status. The IRS threshold is $5,000 in gross annual income. If you bring in more than $5,000 a year, you must legally do one of the three following options.
2. Consider another tax exempt status such as 501c7 Social Club if you are a support group. See my blog posts on that issue here http://homeschoolcpa.com/are-homeschool-support-groups-automatically-tax-exempt/
3. File for tax exemption under 501c3 as an educational organization
4. Pay your taxes.
In a nutshell, a homeschool group must be be small enough, fit the 501c7 Social club definition, or file for tax exempt status to avoid paying tax.
Just because you do not accept donations does not exempt you from the IRS and tax regulations.
The USA offers a wonderful opportunity for nonprofit groups to keep all of their surplus and avoid paying taxes on it. But it does mean filing one time a document with the IRS to become a tax exempt organization.
I hope that clears things up a bit.
Carol Topp, CPA
HomeschoolCPA.com