Iowa Tax Credit For Families
The Iowa Tuition and Textbook Credit can be claimed by parents whose children attend an accredited Iowa school. The child must be claimed by the parent as a dependent on their tax return and only expenses paid by the parent can be used to calculate the credit. Expenses for home schooling, tutoring, special tests, or schooling outside an accredited school do not qualify. Allowable expenses include:
- Books and other instructional materials used in teaching subjects normally taught in public education (Do not include religious textbooks or yearbooks)
- Non-Street clothing: Costumes, cleats, uniforms, and rental fees for costumes or special event clothing. (Do not include clothing or shoes that can be used for everyday)
- Drivers Education if paid to the school
- Student Activity Fees including dues for extra-curricular activities such as FBLA, FFA, FCCLA, and student admission to athletic events. (Do not include convention costs, senior trips, or food and lodging for over-night trips)
- Supplies for education projects: posters, display boards, calculators, flash drives, etc.
- Rental of music instruments, supplies such as reeds, sheet music, music lessons at school (Cannot include the cost of purchasing a musical instrument or private music lessons)
- Class lab basic fees or materials: goggles, lab coats, shop fees, food lab fees. (Do not include the cost of materials for projects that become personal property such as clothing from a sewing lab, furniture or car restoration from a shop class, livestock equipment from a welding class)
- Field trip fees if the trip takes place during school hours
- Tuition (Do not include the cost of religious instruction or private tutors)
- Transportation fees paid for bus service to the school
The Early Childhood Development Credit is available to parents of children age 3-5 if they don’t pay for child care. The credit is based on income and not available to families or individuals with incomes over $45,000. Allowable expenses include:
- Services provided by preschool
- Books that improve child development , textbooks , music and art books, teacher’s editions, and reading books
- Instructional materials such as paper, notebooks, pencils, and art supplies
- Lesson plans and curricula
- Child development and education activities outside the home, such as drama, art, music, and museum activities, includes entrance fees for such activities.
Both credits are limited to 25% of the costs up to a total of $1000 per child that are supported by receipts or valid banking records. (Drivers Education cost $300 = $75 credit)
