Catholic Schools

Illinois Department of Revenue Education Expense Credit

Attending a Catholic school became more affordable with the passage of the Illinois Department of Revenue Education Expense Credit. Effective January 1, 2000 an Illinois resident who is a parent or legal guardian of a student (K-12, full time student under the age of 21) in an Illinois elementary or secondary school is eligible to take a tax credit on their Illinois individual income tax credit is 25 percent of the student's remaining qualified education expenses up to $500 per family.

To claim this credit, complete the Education Expenses Credit Worksheet in the IL-1040 instructions. You must attach the written receipt you receive from the school to your tax return. If the school does not provide you with a written receipt, you must complete Schedule ED, Credit for Qualified Education Expenses.

How much credit will you be allowed for education expenses?

When figuring your family's education expense credit, you must first deduct the first $250 of qualified education expenses. You will then be allowed a credit of 25% for the remaining educational expenses you paid during the calendar year. Your total credit amount shall not exceed $500 in any tax year, regardless of the number of qualifying students. Any credit amount that exceeds your tax liability will not be refunded. The education expense credit must be claimed for the calendar year in which the qualified education expenses are actually paid. Any part of the education expense credit not claimed or allowed in a calendar year shall not be claimed in any other calendar year.

Various examples:

Example Fees: Current School Year 1 Child 2 Children 3 Children
Tuition, Books, and Lab Fees $1,750 $2,250 $2,500
Subtract first $250 -250 -250 -250
Remaining qualified educational expenses $1,500 $2,000 $2,250
Multiply remaining qualified ed. exp. by 25% $375 $500 $562
Maximum tax credit $375 $500 $500




Tuition, Books, and Lab Fees $1,750 $2,250 $2,500
Less maximum tax credit -375 -500 -500
Net cost of tuition and book fees $1,375 $1,750 $2,000




Yearly net cost per student $1,375 $875 $666.67
Monthly net cost per student(10 months) $137.50 $87.50 $66.67
Weekly net cost per student $34.38 $21.88 $16.67

You can obtain an updated form and additional information by looking at Publication 112 on the Illinois Department of Revenue's website: www.tax.illinois.gov