Comments on: Ask the taxgirl: Private school tuition

By: Jennifer

Jennifer — Sun, 15 Feb 2009 21:27:14 +0000

I’m so upset, i can’t believe there isnt any tax breaks for sending my child to private school! We don’t burden the state with adding another child in their sometimes, messed up system…yet we still are expected to pay taxes toward the public school system, we dont use!! And now they talk about offering vouchers/scholarships to kids who attend public schools that are failing. It sometimes feels like it pays to not work and just use the system!

By: PriyaGuttal

PriyaGuttal — Tue, 25 Mar 2008 15:00:48 +0000

Hi! I have a question. Is the tuition for private, special education school tax deductible?
Thank you.
Priya

By: 9 Child-Related Tax Breaks That You May Be Overlooking

9 Child-Related Tax Breaks That You May Be Overlooking — Thu, 28 Feb 2008 20:05:18 +0000

[...] Charitable Donations. While tuition payments for private and parochial schools are not usually deductible, donations of goods and cash may be. In fact, most schools (private, public and parochial) have [...]

By: Decision or Choice: Is the Difference Stealing Your Focus and Your Time? - Liz Strauss at Successful Blog - Thinking, writing, business ideas . . . You’re only a stranger once.

Thu, 28 Feb 2008 13:35:36 +0000

[...] we’re thinking about sending a child to private school, where to go on holiday, or buying office supplies, every day we opt for one thing over another. [...]

By: Kelly

Kelly — Wed, 27 Feb 2008 12:32:39 +0000

Actually, that’s not true, ATG. I don’t mind paying taxes for public schools now, and I didn’t when I had no children. I have two children not in school and I don’t think I should get a “break” for those at all. I don’t think there should be an exemption for folks who don’t have children in public school any more than I think folks with more than one child should pay more. I believe that education is an important aspect that affects everyone, kids or no.

And a tax break/credit for private school would be no different than what is allowable for college tuition. The break/credit wouldn’t hurt anyone – a small credit for tuition (esp when tuition is usually upwards of $10k/year) isn’t the same as all thing being equal with a parent whose kids are at public school.

My beef is more of a policy argument. In PA, I don’t have to send my child to school until age 8. I chose to send my child to school at age 4. The government is willing to give me “credit” for having a babysitter watch my children, but not for private school. What kind of priority is that?

Similarly, if I move to a more expensive home in another school district, I can get a tax credit for the money that I would spend on the new home. Why is it ok to subsidize my move but not education? When folks talk about private school tuition tax breaks causing mass flight, they’re misguided. It’s already happening and it’s subsidized by the government: it’s call the home mortgage interest deduction.

As for vouchers, I’m not a big fan. Most of the programs that are in place would essentially “equalize” all schools in terms of costs which sounds really lovely (other countries do it) but our economy is so disparate from rural to urban and other demographics that most of the voucher proposals would only benefit a handful.

I realize that I am lucky to be able to send my child to private school – and it has not been easy (we have made other cuts in order to afford it). And I’m not looking for a handout. But from a tax policy stand point, I don’t understand subsidizing mortgages, babysitting and under Romney’s proposal, homeschooling, while overlooking private school.

By: Another Tax Geek

Another Tax Geek — Wed, 27 Feb 2008 04:36:57 +0000

I’ve always supported the voucher system. Gov’t is most efficient (crazy idea, right?) when it has competition, and vouchers provide that. But to carry your point one step further, you’re essentially wanting to only pay for school once, where you choose. I don’t have any kids, how about if I get a tax break too, and instead, schools are funded by taxing the parents of the users?

By: Kelly

Kelly — Tue, 26 Feb 2008 04:04:46 +0000

I personally don’t think that folks would flock to private schools for a small tax credit… And my issue is one of priorities (addressed previously here: http://www.taxgirl.com/being-middle-class-in-america-sucks/#comment-2550)

To answer your question, you can establish a Coverdell ESA (more or less an educational IRS) but it really doesn’t work out financially. You can’t establish one until you have a beneficiary and the max contribution level is, I believe, $2k. So assuming that you start with a newborn and contribute $2k each year, you may have enough to pay for two years by the time the child is ready to graduate. And depending on the plan, the fees may be prohibitive for short term contributions.

By: HSwift

HSwift — Tue, 26 Feb 2008 03:09:18 +0000

I did a little research on this topic and found an opinion that stated if we could deduct private school tuition then people would be flocking to private schools and the public school system would lose money. The govt doesn’t want to do that to their schools. I guess a deduction would be akin to the voucher system. I wonder if vouchers have hurt the public school system where it is in practice now.

Aren’t there education IRAs? Can you put money in one pre-tax and then take it out eg. for private high school?