K-12 School Supplies Credit

Full Title:
Supporting Students and Families Act

Summary#

This bill would add a new federal tax credit for some K–12 school supply costs. The credit would let an individual taxpayer reduce their federal income tax by up to $200 for eligible expenses for a dependent in elementary or secondary school. The credit phases out for higher-income taxpayers and cannot be used for expenses already counted under a Coverdell education savings account.

  • Main change: creates a new non‑named tax credit called "Elementary and Secondary School Supplies" that can be claimed on a federal income tax return.
  • Maximum amount: $200 per taxpayer per year (the bill does not say it is per child).
  • Income phaseout: the credit is reduced when a taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000, and phases out completely when it exceeds $215,000 (the bill defines MAGI as AGI plus certain excluded foreign income).
  • Eligible expenses: books, supplies, and other equipment paid for a dependent enrolled in a public, private, or religious elementary or secondary school.
  • Coordination rule: expenses already taken as qualified education expenses under a Coverdell account cannot also be used for this credit.
  • Timing: applies to tax years starting after December 31, 2026.

What it means for you#

  • Parents and guardians of K–12 students: You could claim up to $200 off your federal income tax for school books, supplies, and equipment bought for a dependent enrolled in elementary or secondary school. The bill does not say the credit is per child, so a household with multiple children appears limited to $200 total unless further guidance is issued.
  • Higher‑income taxpayers: If your MAGI is above $150,000 the credit is reduced; it disappears once MAGI is above $215,000.
  • Low‑income taxpayers: The bill does not say the credit is refundable (meaning it may only reduce tax owed). It is unclear whether taxpayers with little or no federal tax liability can get a refund from this credit.
  • Tax filers using Coverdell accounts: You cannot claim the same expenses twice. Any expense counted as a qualified expense for a Coverdell ESA cannot be used for this credit.
  • Schools and vendors: The bill changes tax treatment for families, not schools. It does not create point‑of‑sale discounts or require schools/vendors to change billing.

Expenses#

No publicly available information.

  • The bill text does not include a fiscal note or estimate of how much this credit would cost the federal government or how many taxpayers would claim it.
  • Possible costs (not estimated in the bill): reduced federal tax receipts if people claim the credit; IRS administrative costs to add and administer a new credit; compliance costs for taxpayers to document expenses.
  • The bill does not say whether the credit is refundable or requires specific documentation to claim it.

Proponents' View#

  • The bill appears intended to reduce out‑of‑pocket costs for families who buy school books, supplies, and equipment for elementary and secondary students.
  • It could be seen as a way to provide targeted tax relief directly tied to school expenses for families with school‑age dependents.
  • The inclusion of public, private, and religious schools makes the credit broad in which school types qualify.
  • The coordination rule with Coverdell accounts helps prevent the same expense from being counted twice for tax benefits.

Opponents' View#

  • One concern is that the credit may not help the lowest‑income families if it is nonrefundable; taxpayers with little or no federal income tax liability might not benefit.
  • The $200 cap is small relative to typical annual school supply costs, so the practical benefit per family could be limited.
  • The bill does not provide a fiscal estimate, so it is unclear how much revenue the credit would reduce or how it would affect federal budgets.
  • The definition of eligible expenses is broad but not detailed; the bill does not explain what documentation taxpayers must keep or how the IRS will verify claims.
  • The income phaseout and coordination with Coverdell accounts add complexity that could raise administrative or compliance costs.