The US Department of Education's Office of Elementary and Secondary Education does not currently provide any funding for home schools. Many states require that home schooled children take the GED to be eligible for state aid for college. To be eligible for federal student aid, the student must pass an independently administered test that is used to determine the student's ability to benefit from postsecondary education. See also the Homefires web page. Taxpayer who is claiming the student as a dependent and paid qualified educational expenses for a student.
Credit is available for as many students who qualify per taxpayer.
Students, if they are not claimed as a dependent on another taxpayer's return. Taxpayers claiming students as dependents are entitled to the full credit earned even if they do not pay all the qualified expenses for the student. The upper limits will be adjusted for inflation after 2001. Student is in first two academic years of study at an eligible higher education institution. The credit will be adjusted for inflation, beginning after the year 2001.