Wondering when to start planning for back-to-school tax deductions? Discover the best time to prepare and how to maximize your savings this school season.
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It’s June—the sun is shining, kids are at summer camp, and vacation plans are in full swing. So, naturally, it might feel premature to talk about back-to-school shopping, let alone taxes.
But here’s the reality: tax-smart families and individuals know that early planning often unlocks the biggest savings. And when it comes to education—whether you're preparing for kindergarten, college, or your next year as a teacher—June is actually a perfect time to start thinking about tax deductions and credits connected to school-related expenses.
Back-to-school season is a high-spending period for many Americans. In 2024, the National Retail Federation reported that the average family with school-aged children spent over $890 on school supplies, clothing, and electronics. That number climbs sharply for those with college-bound students. While many of these costs aren't directly deductible, there are key ways to reduce your tax liability by planning your spending wisely—and now is the time to act.
Let’s explore how you can turn your summer prep into a tax-savvy investment in your or your child’s education.
Unfortunately, not every backpack, pencil case, or pair of sneakers qualifies for a tax deduction. But certain education-related costs do—especially those tied to qualified tuition and fees, required supplies, or college-related expenses. Here are the primary federal programs to watch:
This credit provides up to $2,500 per eligible student for four years of post-secondary education. It covers:
💡 Importantly, 40% of this credit is refundable—meaning you could get up to $1,000 even if you don’t owe any tax.
Worth up to $2,000 per tax return, this credit is more flexible. It applies to:
Unlike the AOTC, the LLC is not refundable, but there’s no limit on the number of years it can be claimed. So it’s a valuable tool for adults returning to school or taking job-related courses.
💡 Tax Tip: To qualify for these credits, you must pay the qualified expenses in the tax year you're claiming them—so June, July, and August payments for fall semester do count for 2025 returns.
Educators are often the unsung heroes of tax season—spending hundreds (sometimes thousands) of dollars from their own pockets for classroom materials.
The Educator Expense Deduction allows qualifying K–12 educators to deduct up to $300 annually (or $600 for two eligible spouses filing jointly). This includes:
Most educators start preparing for the new school year well before August. Beginning your documentation now ensures that you’ll capture:
💡 Keep digital receipts, take photos of supply hauls, and consider using a dedicated card or expense-tracking app to streamline your records.
Planning ahead isn't just about deductions—it’s also about investing. Summer is a strategic time to reassess your education savings tools.
These plans allow for tax-free growth and withdrawals when used for qualified education expenses. They’re incredibly versatile:
Many states offer state tax deductions or credits for 529 contributions. Contributing in June gives your money more time to grow and puts you on track to max out annual benefits by December.
Example: A family in New York contributing $5,000 per year to a 529 plan can deduct that from their state taxable income—resulting in hundreds in annual tax savings.
These are less common but still useful, allowing tax-free distributions for both K-12 and college expenses. However, contributions are capped at $2,000/year per beneficiary and subject to income limits.
One of the most common reasons families miss out on tax breaks? Lack of documentation.
Here’s a list of what you should start saving right now:
Consider creating a simple system:
Nearly 20 states offer back-to-school sales tax holidays—typically in late July or early August—allowing you to buy select school items tax-free. Qualifying purchases often include:
Planning ahead means you won’t be forced into last-minute buying or miss your state’s window. Examples from 2024:
📌 Tip: States often release updated lists in June, so now is a good time to bookmark your state’s Department of Revenue site.
Homeschooling continues to grow rapidly in the U.S.—and while the IRS does not currently allow federal deductions for homeschool expenses, some states do.
Additionally, some states offer Education Savings Accounts (ESAs), which allocate funds to families for educational use—including homeschool curriculum, tutoring, and technology.
🏡 If you homeschool, now is the time to budget for curriculum, purchase early, and ensure receipts are saved for potential state deductions.
Many tax benefits depend on who claims whom—especially when it comes to dependents enrolled in school.
If your child is under 24, a full-time student, and you provide more than half their support, you can typically claim them as a dependent. This lets you:
⚠ Caution: If your child files their own return, be sure they don’t mistakenly claim themselves. It’s a common error that can disqualify you from valuable credits.
If you're paying for your own education and don't qualify as a dependent, you can still claim the LLC or deduct student loan interest (up to $2,500 annually). Just be sure to keep clear records of:
Tax laws around education credits and deductions evolve frequently. Here are a few developments worth watching this year:
In 2024, Congress passed legislation allowing limited rollovers from 529 plans to Roth IRAs (up to $35,000 per beneficiary over a lifetime), provided the plan has been open at least 15 years. This gives families more flexibility if education plans change.
As of mid-2025, several states (including Arizona and Florida) have expanded ESA eligibility, and others are considering similar legislation. These accounts can significantly reduce out-of-pocket education costs when used strategically.
The IRS has tightened scrutiny on education credit claims, especially for students not enrolled in accredited institutions or for expenses that don't qualify (like optional equipment or club dues). Early documentation and qualified advice are now more critical than ever.
Most families don’t associate summer with tax strategy—but that’s exactly why it’s a golden opportunity.
Thinking ahead in June means:
📌 And best of all? You’ll face tax season with clarity, not chaos.
At Vincere Tax, we specialize in helping families, teachers, and students navigate the complex world of education-related tax benefits. Whether you’re a first-time college parent, a self-employed homeschooler, or a teacher wondering what qualifies, our tax professionals are here to help.
Book a free consultation today, and let’s turn your summer planning into year-round tax savings.
It depends. If you're a teacher, you may qualify for the Educator Expense Deduction, which allows you to deduct up to $300 (or $600 if married filing jointly and both spouses are eligible educators) for unreimbursed classroom supplies. For parents and students, typical K–12 school supplies are not deductible unless used for a qualified educational program under certain tax-advantaged accounts like a 529 plan.
No, K–12 private school tuition is generally not tax-deductible. However, you may use 529 plans to pay for up to $10,000 per year in K–12 tuition, which can provide tax-free growth and withdrawals for qualified expenses.
For higher education, two major tax credits apply:
These credits do not apply to K–12 expenses but are worth planning for if your child is entering college.
Yes, if you're a teacher or using tax-advantaged savings (like 529 plans), keeping receipts helps document qualified expenses. Even though most K–12 expenses aren't deductible, receipts are important for:
Yes, if you donate cash or items to a qualified school (typically a public or registered nonprofit school), you may be able to claim it as a charitable contribution if you itemize deductions. Be sure to get a written acknowledgment for any donation over $250.
Being audited is comparable to being struck by lightning. You don't want to practice pole vaulting in a thunderstorm just because it's unlikely. Making sure your books are accurate and your taxes are filed on time is one of the best ways to keep your head down during tax season. Check out Vincere's take on tax season!
This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
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