The bill would create a refundable federal tax credit for qualifying elementary and secondary school expenses paid for a taxpayer’s qualifying child. The credit would be limited to $10,000 per child and reduced for taxpayers whose income exceeds specified thresholds. The bill would apply to tax years beginning after it becomes law.
If you pay eligible expenses for a qualifying child at a public, charter, private, parochial, or religious school, you could claim the credit. Eligible costs include tuition and required fees, plus up to $1,500 of listed non-tuition expenses, such as books, tutoring, and academic testing. Some school costs, including uniforms and athletics, would not qualify. Expenses covered by certain Coverdell account distributions would reduce the amount counted for the credit.
The credit could not exceed $10,000 per child. It would be reduced by $50 for each $1,000, or part of $1,000, that modified adjusted gross income exceeds $150,000 for a joint return or $75,000 for other returns. No publicly available information gives an estimate of the bill’s overall cost.
The bill’s findings state that private schools supplement public schools and that parents should be able to choose a school suited to their child’s needs.
No publicly available information.