February 17, 2012

New law allows parents of Catholic school children to save in state income taxes

Criterion staff report

Thanks to a new law, parents of Catholic school children may be eligible to save $34 per child in this year’s Indiana state income taxes.

“It’s part of the school voucher bill that was passed last April,” said Glenn Tebbe, executive director of the Indiana Catholic Conference, the Church’s official representative on public policy in the state.

“It provides a $1,000 deduction per child who is enrolled in a non-public school or is home-schooled. It’s not a credit. It’s a deduction. As an example, if you have $10,000 in taxable income and have one child in a Catholic school, then you could deduct $1,000 because of that child. You’d end up paying taxes on $9,000.”

With the state tax rate at 3.4 percent, Indiana taxpayers would save $34 for each $1,000 in deductions, Tebbe figured.

“It’s a good thing and a step in the right direction,” Tebbe noted. “It gives families something that recognizes the sacrifices they make, and the fact that the state saves money because they don’t have to pay for these children in a public school.”

For more information about the state tax deduction, see Income Tax Information Bulletin 107 at www.in.gov/dor/3650.htm. †

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