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Indiana School Choice Options

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byMcGuffey E R

Indiana offers a few programs that can help homeschool families. The simplest is a state income tax deduction. You may deduct $1,000 for each child you homeschool in grades K-12 if you paid education costs for that child. Costs include curriculum, textbooks, software, supplies, and fees. Personal computers do not count. Indiana also has two scholarship programs. The Choice Scholarship pays tuition at participating private schools. The Indiana Education Scholarship Account serves students with disabilities who meet income rules. Families should know one key rule. Students using the ESA at home are not counted as homeschoolers. They must take the statewide test.

Day to day, save receipts for the costs you plan to deduct. Married couples get only one deduction per child. Claim it on your Indiana income tax return. Choice Scholarship applications go through the school you pick. ESA applications go through the Indiana Treasurer of State. Homeschool students with disabilities may still get some IDEA services through public schools. Indiana was not on the IRS list for the new federal scholarship tax credit. That list was dated October 22, 2026. For full details on each topic, open the sections below.

Indiana allows a $1,000 state income tax deduction for each dependent child enrolled in a private school or homeschooled in grades K-12 for whom you paid unreimbursed education expenses. Qualifying costs include tuition, fees, computer software, textbooks, workbooks, curricula, school supplies (other than personal computers), and other written materials used primarily for academic instruction or tutoring. A married couple gets only one deduction per child (Indiana DOR: Information Bulletin 107).

Keep receipts and records of what you buy. Check Information Bulletin 107 for the full list of qualifying and non-qualifying expenses before you file.

The INESA, run by the Indiana Treasurer of State, is for students ages 5 to 22 who live in Indiana, have a disability with a current IEP, Service Plan, or Choice Special Education Plan, and meet household income requirements (Indiana Treasurer of State: INESA Program Information).

Important: Students using an ESA who are educated at home are not considered homeschoolers and must take the statewide assessment (INESA).

The Choice Scholarship Program (IC 20-51) offers scholarships to eligible Indiana K-12 students to offset tuition at participating private schools. Students must have legal settlement in Indiana and be at least 5 and under 22 by October 1 of the school year. Parents apply through the participating Choice school (Indiana DOE: Choice Scholarship Program). It does not pay for homeschooling.

The federal scholarship tax credit (Internal Revenue Code section 25F) begins January 1, 2027, in states that opt in. Indiana was not on the IRS list of participating states as of October 22, 2026 (IRS: FSTC Participating States).

Homeschooled children with disabilities may take part in IDEA-funded programs through public schools, and sports participation is a local decision with IHSAA rules (Indiana DOE: Homeschool Help Sheet). In 2025, HB 1348 made homeschool diplomas legally sufficient proof of high school completion (Indiana General Assembly: HB 1348). See our Indiana Homeschool Laws page.

Last reviewed: November 4, 2026

*The information on this page is for general use only. It should not be taken as legal advice. It is believed to be accurate however state and federal laws change every year. Homeschool.net recommends joining an organization such as the Home School Legal Defense Association before your homeschooling adventure begins. HSLDA can provide complete, accurate, legal advice and services for homeschooling families.

Update History

No changes in law noted since this page was first published.

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