Is private school tuition tax deductible? If not, are there any available tax benefits to sending a child to private school?

ANSWER

The BIDaWIZ Team's Answer:

Unfortunately, there is no tax deduction or credit for private school tuition. However, there are two potential tax benefits available for private school tuition. A Coverdell Education Savings Account (CESA) provides a way for a parent to pay qualifying education expenses with excluded income. Specifically, a nondeductible contribution of up to $2,000 per year can be made to a CESA. It works similar to an employer health benefit plan, but you don't get the tax deduction. The contribution amount is subject to a phaseout if your modified adjusted gross income exceeds $95,000, with no exclusion at $110,000 ($190,000 and $220,000 if you are married filing a joint return). The other potential tax benefit applies under very limited conditions for students who have a mental or physical handicap and attend a special school to treat that handicap. If the principal reason for attending the school is to alleviate the mental or physical handicap, the cost of the tuition may be deductible as a medical expense. Medical expenses are subject to an adjusted gross income floor of 10% percent. You will need proper documentation of the physical or mental handicap, as well as proof of the tuition payment. Again, this deduction is available only under very limited circumstances.