Illinois Education Expense Credit ($750) + Homeschool Rules (2026)

Last updated: November 1, 2026. We checked the Illinois Department of Revenue’s Publication 112, the 2025 Schedule ICR instructions and Invest in Kids page, plus the Illinois State Board of Education homeschooling page. This is general information, not legal, tax or financial advice.

Illinois families used to have two kinds of state help with private school costs. The Invest in Kids tax-credit scholarship program ended at the close of 2023, which leaves one: the K-12 Education Expense Credit on the state income tax return. It is small, but it covers public, private and home school families.

This guide explains the credit, what changed with Invest in Kids and what Illinois expects from homeschooling families.

This guide is part of our series on state education funding, which starts with the hub guide, State Education Funding Programs for Parents. If you are brand new to the idea, our step-by-step guide to starting homeschooling covers the basics that apply in every state.

Quick answer: Illinois has no voucher, ESA or active tax-credit scholarship program. The K-12 Education Expense Credit gives 25% of qualified tuition, book rental and lab fees over the first $250, up to $750 per family, claimed on Schedule ICR. It is not allowed if AGI is above $500,000 (married filing jointly) or $250,000 (other returns). Homeschool families can claim it for qualifying consumable curriculum costs. Invest in Kids expired on December 31, 2023. Homeschooling counts as private schooling in Illinois, and state registration is voluntary.

Parent preparing a tax return envelope with school receipts

Table of Contents

Illinois’ Programs at a Glance

Program	Status	What it does
K-12 Education Expense Credit	Active	Nonrefundable credit of 25% of qualified expenses over $250, up to $750 per family
Invest in Kids Scholarship Tax Credit	Expired December 31, 2023	Gave donors a 75% credit for gifts to scholarship groups
Federal Scholarship Tax Credit	Starts 2027 in opt-in states	Illinois was not on the IRS list as of October 22, 2026

Students doing a science lab experiment with their teacher

How the K-12 Education Expense Credit Works

Under Publication 112, you can figure a credit for qualified education expenses over $250 if all of these are true:

You are the parent or legal guardian of a full-time student under age 21 at the end of the school year.
You and the student were Illinois residents when you paid the expenses.
The student attended kindergarten through 12th grade at an Illinois public or nonpublic school, or a home school that meets Illinois truancy law.

The credit is 25% of qualified expenses after the first $250, capped at $750 per family no matter how many children you have. It is not allowed if your AGI is above $500,000 on a married filing jointly return or $250,000 on any other return. It is nonrefundable, so it can only reduce tax you owe.

What qualifies at a school

Tuition for K-12, including required summer school.
Book rental fees for required books (not books you buy).
Lab fees for required lab courses, including instruments rented from the school.

Expenses that do not qualify include preschool and daycare, after-school care, independent tutoring services, items you keep (like a purchased instrument) and anything paid with a scholarship. You claim the credit in Section B of Schedule ICR and the worksheet, and you keep school receipts in case the department asks.

Invest in Kids: What Ended and When

Illinois created the Invest in Kids program in 2017. Donors got a 75% state income tax credit for gifts to Scholarship Granting Organizations, which then gave scholarships to income-eligible students at nonpublic schools. The Department of Revenue says the program expired on December 31, 2023. Gifts made after that date earn no credit.

Donors who earned credits for 2023 or earlier can carry unused amounts forward for five years, through 2028. For families, though, the state-backed scholarships are gone. If your child had one, ask the school or the former scholarship group what help is still available.

Mom checking updates on her phone while kids draw with sidewalk chalk

Recent Changes and Status (as of November 2026)

Invest in Kids sunset: expired December 31, 2023, per the Illinois Department of Revenue. As of November 1, 2026, it has not been renewed.
Federal Scholarship Tax Credit: starts January 1, 2027 in states that opt in (IRS). Illinois was not on the IRS participating states list dated October 22, 2026, so Illinois donors cannot use it for Illinois scholarship groups unless that changes.
Education Expense Credit: still active for 2025 returns, with the $750 family cap in place since tax year 2017.

Mom and daughter working in homeschool workbooks at the dining table

Homeschooling in Illinois: Rules and the Credit

The Illinois State Board of Education says that, after the 1950 Illinois Supreme Court decision in People v. Levisen, homeschooling is treated as a form of private education.

Teach language arts, mathematics, biological and physical science, social science, fine arts, and physical development and health, in English.
Provide an education at least equivalent to what public schools offer.
Registration with ISBE is voluntary. There are no other required state forms.
If your child is leaving a public school, ISBE strongly recommends a dated letter to the school so your child is not marked truant.
Standardized testing is not required.

Using the credit as a homeschool family

Publication 112 lists homeschool expenses that qualify: tuition paid for the student, workbooks and teacher grade books that are used up, book and curriculum rental fees, required lab fees, and shipping and sales tax on those items. Non-consumable textbooks, flash cards, maps, calculators, field-trip travel and enrichment classes that do not count toward the required curriculum do not qualify. Homeschool families must attach receipts to the return, and a canceled check is not accepted as a receipt.

See our guide to homeschool laws by state for how Illinois compares.

Parents talking in a library while kids read

Frequently Asked Questions

How much is the Illinois education expense credit?

25% of qualified expenses after the first $250, up to $750 per family per year.

Is there an income limit?

Yes. The credit is not allowed if AGI is above $500,000 (married filing jointly) or $250,000 (all other returns).

Is Invest in Kids still available?

No. The Illinois Department of Revenue says it expired December 31, 2023.

Can homeschoolers claim the Illinois credit?

Yes, for qualifying consumable curriculum and fees, with receipts attached to the return.

Do I have to register my homeschool in Illinois?

No. ISBE offers voluntary registration, but it is not required.

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Sources

We checked each of these official pages on November 1, 2026. Rules and dates change, so confirm anything important with the agency before you rely on it.

Looking for another state? Go back to the State Education Funding Programs for Parents hub for the full list of state guides.

Illinois K-12 Education Expense Credit (2026): $750 Limit, Homeschool Expenses, Invest in Kids Status and Homeschool Rules

Illinois’ Programs at a Glance