I have been involved in financial planning for 25 years and own my business. My question is concerning tax deductions that could be available for homeschooling. What are some of the possibilities?
I would assume that a person could set up a home school as a business but that would involve certain steps; what are they? Would tax deductions be allowed if the business was not profitable or only set up to teach their own children? Can expenses for things like mileage, activities, food, lodging or associated training expenses count as a deduction?
I have been asked questions similar to yours several times.
Here’s a blog post discussing tax deductions for homeschooling expenses:
Some homeschool groups (not individual families) set up a nonprofit organization and receive 501(c)(3) or 510(c)(7) tax exempt status from the IRS. But tax exempt status is only available to an organization, not to individual families.
Tax deductions are not allowed for expenses of teaching your own children. They are considered personal expenses, like food or clothing.
You would not be successful in setting up a business to homeschool your own children because you do not have a trade; you would have no paying customers. There would be no revenue and the IRS would disallow the expenses because they are personal expenses, not legitimate business deductions.
So, sorry Jim, but your assumptions were wrong.
Carol Topp, CPA