Homeschool Tax Deductions and Credits in Indiana
Yes. Indiana allows a $1,000 state income tax deduction for each homeschooled child in grades K-12 in a year you pay education expenses. A separate education scholarship account serves only students with disabilities and their siblings.
How the deduction works
The unreimbursed education expenses deduction (Indiana Code 6-3-2-22) is explained in Indiana Department of Revenue Information Bulletin 107. It reduces your adjusted gross income, so the tax saved is the deduction times Indiana's income tax rate.
Qualifying expenses include tuition, fees, computer software, textbooks, workbooks, curricula, school supplies other than personal computers, and other written materials used mainly for academic instruction or tutoring. The deduction is a flat $1,000 per child, not the amount you spent.
Indiana Education Scholarship Account
The Indiana Education Scholarship Account (INESA) lets parents of a student with a disability opt out of the public school system and spend state money on approved expenses through the ClassWallet portal. A student with a disability may receive up to $20,000 a year and a sibling up to $8,000, depending on the disability level and school district. The Indiana Department of Education has run the program since July 1, 2026.
Who qualifies
Who can claim the deduction
The child is your dependent under federal tax rules and is homeschooled or in a private school in grades K-12. A married couple gets only one deduction per child.
Unreimbursed expenses
You paid at least some qualifying education expense during the tax year and were not reimbursed for it.
Not public school at home
The deduction does not cover instruction at home for a child enrolled in a school corporation or a charter school, such as a public virtual school.
Applying and paying
First step
Keep receipts for curriculum and supplies, and claim the deduction on your Indiana income tax return for the year.
What can rule you out
INESA does not reimburse purchases made with personal funds, except under its direct pay rules with documentation, and full-time online schools are not an allowed expense.
When to apply or file
Claim the deduction when you file your state return. The INESA application for 2026-27 ran from March 1 to September 1, 2026, with a priority window from March 1 to April 15; funds arrive in August, October, December, and February.
Teaching that takes the work off you
We teach every subject starting at your child's level, grade the work as it is submitted, and keep the attendance, grades, and transcript, so homeschooling asks less of your time.
$149/month per child after the trial.
Sources (3)
Confirm current tax, scholarship, and ESA rules with the program before you rely on them.