The Associated Press is reporting that after much debate, Tennessee’s school voucher plan (education savings accounts) will be counted as taxable income for some families.

Tennessee’s top education officials say a small number of parents who participate in the state’s latest school voucher imitative might be taxed for participating in the program.

The development on Monday comes after months of debate between policy officials, education advocates and lawmakers over whether the new school vouchers for private education will be considered federally taxable income for parents.

The announcement on taxes comes following a November statement by Education Commissioner Penny Schwinn that vouchers would be subject to taxes:

… Penny Schwinn dropped a bombshell yesterday when she told a legislative committee that the value of a voucher under the state’s new education savings account program would be considered taxable income for the purpose of federal taxes.

Following that announcement, Gov. Bill Lee said he didn’t believe the vouchers would be taxed. Now, it appears that at least for some recipients, accepting an education savings account will also mean accepting an increased tax burden.

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