Illinois Department of Revenue Reminds Eligible Taxpayers to Take Advantage of Back-to-School Tax Benefits

CHICAGO - As the new school year gets underway, the Illinois Department of Revenue (IDOR) is reminding eligible taxpayers that they may claim back-to-school expenses for their K-12 students on their 2024 Illinois individual income tax returns.

"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)," explained IDOR Director David Harris. "It is important they keep receipts for all qualifying purchases in a safe place so they can be accessed when it is time to file their taxes."

The Illinois Education Expense Credit allows parents or legal guardians of a full-time K-12 student under the age of 21, to take a 25% tax credit on qualified education expenses over $250 this year. The total credit may not exceed $750, regardless of the number of qualifying students. For tax years ending on or after December 31, 2017, the credit is not allowed if a taxpayer's federal Adjusted Gross Income (AGI) exceeds $500,000 for returns with a federal filing status of married filing jointly, or $250,000 for all other returns.

Qualified educational expenses include tuition, book rental, and lab fees in excess of $250 paid to the school where the student is enrolled on a full-time basis. For home schooled students - book rental and lab fees greater than $250 are eligible when attending a qualified home school program.

Based on the latest final IL-1040 return data, over 203,000 taxpayers claimed the Illinois Education Expense Credit in Tax Year 2023. The total amount claimed was more than $65.4 million, with an average credit of $322.

The K-12 Instructional Materials and Supplies Tax Credit allows eligible teachers of full-time K-12 students to receive a tax break for qualified expenses on classroom materials paid during the taxable year. To qualify, taxpayers must be teachers, instructors, counselors, principals, or aides in a qualified school for at least 900 hours during a school year. They can claim a credit of up to $500 for qualified expenses they paid in the current taxable year. If spouses are both educators and are filing jointly, the maximum credit is $1,000.

Based on the latest final IL-1040 return data, over 68,500 taxpayers claimed the Instructional Materials and Supply Tax Credit in Tax Year 2023. The total amount claimed was more than $29.1 million.

Additional information regarding both tax credits may be found by visiting IDOR's website at tax.illinois.gov and at Pub-112, Education Expense Credit General Rules and Requirements for Schools, Home Schools, Parents, and Guardians.