As summer days begin to wane and thoughts turn to freshly sharpened pencils and crisp sheets of lined paper, the Illinois Department of Revenue (IDOR) is chiming in with a timely reminder for parents and educators: Keep your receipts, because tax benefits are coming your way. According to a press release from the Illinois government, the IDOR is urging eligible taxpayers to take advantage of available tax credits designed to alleviate the financial burden of the back-to-school season.
In a detail that might slip by during the rush of the first school bell, the Illinois Education Expense Credit is offering a 25% tax break on qualified education expenses over $250 this year, however, there is a catch which says the credit caps off at $750 no matter what the number of students in a family might be – and high earners should note the credit phase-out at $500,000 for joint filers and $250,000 for all others, as detailed by the State of Illinois. These qualified expenses can be things such as tuition, book rental, and lab fees, which, when tallying up the back-to-school shopping list, can add quite the financial heft for any parent or guardian.
"Both teachers and parents spend a lot of money in preparation for each school year and that is why I encourage them to utilize valuable savings offered through both the Illinois Educational Expense Credit (for parents) and the Instructional Materials and Supply Credit (for teachers)," IDOR Director David Harris emphasized in the press statement. Educational Expense Credits were a significant boon for over 203,000 taxpayers in Tax Year 2023, with more than $65.4 million claimed and an average relief of $322 per taxpayer.
For those seeking further details either to plan ahead or perhaps even to prompt a mid-year budget reevaluation, additional information on both tax credits can be perused at IDOR's website or by navigating to Pub-112, which offers the Education Expense Credit General Rules and Requirements for Schools, Home Schools, Parents, and Guardians.
