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Official: Tennessee school vouchers are federally taxable income

NASHVILLE, Tenn. (AP) — Tennessee’s education commissioner says the state’s new school vouchers for private education will be considered federally t...
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NASHVILLE, Tenn. (AP) — Tennessee’s education commissionersays the state’s new school vouchers for private education will be consideredfederally taxable income for parents.

After confirming the requirement to lawmakers Monday,Commissioner Penny Schwinn told reporters the attorney general’s office helpedmake the determination.

Schwinn said officials will have to examine the taxableincome of families, given income limits to receive vouchers worth up to $7,300annually.

Participating families cannot exceed twice the federalincome eligibility for free school lunch.

The pro-voucher Tennessee Federation for Children disputesthe tax interpretation.

The law says the vouchers “do not constitute income ofa parent of a participating student” under Tennessee law. That doesn’taffect federal taxes.

Gov. Bill Lee’s administration hopes to begin the programnext year. It’s limited to Shelby and Davidson counties.