If you send your kids to private elementary or high school or homeschool them, there's an Indiana tax deduction that you should use. You can deduct $1,000 per dependent child.
This is a deduction, not a tax credit. A deduction reduces your taxable income, before calculating state and local tax. So, a $1,000 reduction in taxable income, saving state tax at a 3.4% rate and county tax at an average of 1.0% to 1.62% rate will save you $44 to $50 per child. Not huge but it keeps your money in your pocket. The more times you can do that the better off you're going to be.
Private School/Homeschool Deduction 626
You may be eligible for a deduction based on education expenditures paid for each dependent child who is enrolled in a private school or is homeschooled.
Dependent Child Qualifications
• Your dependent child must be eligible to receive a free elementary or high school education (K-12 range) in an Indiana school corporation;
• You must be eligible to claim the child as a dependent on your federal tax return; and
• The child must be your natural or adopted child or, if not, you must have been awarded custody of the child in a court proceeding making you the court appointed guardian or custodian of the child.