Eligible back-to-school expenses could yield tax benefits for parents

With the new school year here, the Illinois Department of Revenue is reminding parents, guardians and educators that they may be able to claim school expenses for K-12 students on their 2022 Illinois individual income tax returns.

The Illinois Education Expense Credit allows parents or legal guardians of a full-time kindergarten through 12th grade student younger than 21, to take a 25% tax credit on qualified education expenses of more than $250 this year. The total credit may not exceed $750, regardless of the number of qualifying students.

Qualified educational expenses include tuition, book and lab fees in excess of $250 paid to the school where the student is enrolled on a full-time basis. For home-schooled students, book rental and lab fees more than $250 are eligible when attending a qualified home school program.

Based on the latest final IL-1040 return data, more than 192,500 taxpayers claimed the credit in tax year 2021, according to a news release. The total amount claimed was more than $63 million, with an average credit of $327.

The Instructional Materials and Supply Tax Credit allows eligible teachers of full-time K-12 students to receive a tax break for qualified expenses on classroom materials paid during the taxable year.

To qualify, taxpayers must be teachers, instructors, counselors, principals or aides in a qualified school for at least 900 hours during a school year. They can claim a credit up to $250 for qualified expenses they paid in the current taxable year, with the amount increasing to $500 in 2023. If spouses are both educators and are filing jointly, the maximum credit is $500.

Based on the latest final IL-1040 return data, more than 60,000 taxpayers claimed the credit in tax year 2021, according to the release. The total amount claimed was more than $15.6 million.