For many Illinois families, the excitement of a new school year comes with a challenge: managing the ever-high cost of back-to-school expenses. From tuition and activity fees to supplies and clothing, the price of getting the kids off to school can add up quickly. Luckily, there are many savvy ways to ease the financial burden, starting with some planning and by taking advantage of a useful Illinois tax credit.
Nationally, families with students in Kindergarten through twelfth grade are expected to spend an average of $858.07 per household on clothing, shoes, school supplies, and electronics, a figure that is short of last year’s mark by roughly $17, though still staggeringly high. In Chicago, costs climb even higher, with parents estimated to spend $740 per child this year—$170 more than the national average. Wherever you may reside in Illinois, there is a good chance your back-to-school costs will be greater than normal, which is all the more reason to learn a few seasonal cost-saving tricks.
Before any of the shopping begins, take some time to sit down and carefully make a budget. Outline what each child will need for the school year, and categorize expenses like supplies, clothing, and fees so you can focus on essentials and avoid overspending. Once you have identified each student’s needs, take inventory of what you already have left over from last year so you can skip an extra trip to the store.
Once you have outlined a budget and each child’s needs for the upcoming school year, it is time to implement some thrifty shopping practices. When deciding upon where you should buy your back-to-school essentials, hunt for deals online and utilize price comparison apps such as ShopSavvy to help you save before making it to the store. While shopping, consider buying in bulk and sharing with friends or neighbors to cut down your expenses even further.
While you can save big time before the school year begins, a significant portion of your school-related spending will happen after the first day of class, which is why it is important to stay cost-conscious throughout the year. Opt for packed meals over school lunches, carpool as often as possible, and take advantage of free resources at your local library. With a bit of clever thinking, you can cut back on spending while still living your everyday life.
Now that you have implemented a few smart shopping tactics, you can continue to save on your family’s educational expenditure through Illinois’ Education Expense Credit. Illinois residents with a full-time student in kindergarten through high school, whether that be at a public, private, or qualified home school, may be eligible for a significant tax credit that applies to certain education expenses, such as tuition, book fees, or activity fees paid directly to the school. The credit equals 25% of qualified expenses over $250, up to a maximum of $750 per family. It is important to note that there is an income limit of up to $250,000 Adjusted Gross Income (AGI), or $500,000 AGI for joint filers. The credit is nonrefundable, meaning you cannot create a refund if your tax liability is $0, but it can reduce any amount of tax you do owe.
To claim Illinois’ Education Expense Credit, make sure you save all of your receipts for qualifying expenses and file Schedule ICR with your Illinois state tax return. For more details, visit the Illinois Department of Revenue’s Education Expense Credit page.