Homeschool Tax Deductions and Credits in Iowa
Yes. Iowa's Tuition and Textbook Credit covers homeschooled children: 25 percent of the first $2,000 of qualifying expenses per child, so up to $500 each. The Students First education savings account (ESA) does not cover homeschooling.
How the tax credit works
Iowa Code 422.12 gives the credit for tuition and textbooks of each dependent in kindergarten through grade 12 who receives private instruction, which includes independent private instruction, competent private instruction, and instruction by a nonlicensed person. You claim it on line 9 of the IA 1040. It is nonrefundable, and all other credits on that part of the return come off first.
The Department of Revenue's list of eligible items includes textbooks and instructional materials for subjects commonly taught in Iowa public schools, a computer if required, required supplies, driver's education fees, extracurricular fees and materials, instrument rental, and music lessons that are part of private instruction. Items that do not count include anything for teaching religious tenets, tutoring not paid to a school, SAT, PSAT, and ACT fees, and buying an instrument.
The Students First ESA, worth $8,148 for a full year in 2026-27, pays only for children enrolled in an accredited nonpublic school.
Who qualifies
Who can claim
The parent who claims the child as a dependent and paid the expenses.
Paid to others
The credit counts amounts you paid to others; your own time teaching does not count.
No double benefit
Purchases made with ESA money cannot be claimed.
Applying and paying
First step
Keep an itemized list of what you buy for each child during the year, with the child's name and your private instruction option.
What you still pay
Spending above $2,000 per child earns no further credit.
When to apply or file
Claim the credit on your Iowa income tax return for the year you paid the expenses.
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.
Confirm current tax, scholarship, and ESA rules with the program before you rely on them.