Iowa - K-12 Tuition & Textbook Credit

 

Iowa taxpayers, did you know that you may be eligible to claim a credit of up to 25% of the first $2,000 of qualifying school expenses for EACH dependent claimed on your tax return? This could reduce your tax liability by up to $500 per dependent! This credit is available to taxpayers claiming dependents attending K-12 in an accredited Iowa school (public or private) or receiving private instruction through homeschool.

 

What expenses qualify?

  • Tuition
  • Textbooks/instructional materials, school technology fee
  • School supplies on a required list supplied by the dependent's school
  • Rental/purchase of costumes/special clothing (can include rental of prom dresses & tuxedos)
  • Driver's education
  • Fees & materials for extracurricular activities
  • Fees for field trips
  • Rental of musical instruments, music books, purchase of consumable items (reeds, strings, etc.)
  • Sports footwear such as baseball, football, soccer, golf shoes with cleats/spikes
  • Supplies for industrial arts, home economics classes
  • Transportation to/from school (bus fees, not personal transportation)
  • Uniforms for athletic or music programs

 

What expenses don't qualify?

  • Advanced placement fees
  • Class rings
  • Clothing/shoes that can be considered streetwear (t-shirts for extracurricular events, footwear that can be worn as streetwear such as basketball/volleyball shoes)
  • Expenses related to teaching of religious tenets, doctrines, or worship
  • Optional expenditures/materials used for projects for family benefit
  • Purchase of musical instrumnents & sheet music for private use
  • School supplies that listed as optional
  • Testing fees (ACT, PSAT, SAT, Iowa talent search test)
  • Textbook fines
  • Travel expenses for overnight trips involving payment for meals & lodging
  • Yearbooks

 

Are there other limits?

Purchases made from Educational Savings Account (ESA) funds are not eligible for the tuition and textbook credits. Taxpayers should keep records showing the name of each dependent, school(s) attended or qualifications for private instruction, and an itemized list of the qualifying expenses.

 

For a COMPLETE list of qualifying and nonqualifying expenses, please refer to the Iowa Department of Revenue's instructions for this credit. We're also happy to answer your questions; please call the office at 712-256-5642!