Homeschool Funding in Alabama

Alabama CHOOSE Act (Education Savings Accounts)

The Creating Hope and Opportunity for Our Students' Education (CHOOSE) Act, signed into law by Governor Kay Ivey on March 7, 2024, is a game-changer for Alabama homeschool families. This program provides refundable income tax credits in the form of Education Savings Accounts (ESAs) to eligible K-12 students.

• Amount: Homeschool families receive $2,000 per student, capped at $4,000 per family.
• Eligible Expenses: Curriculum, textbooks, educational supplies, tutoring, and other qualified education expenses.
• Platform: Funds are distributed through ClassWallet, a secure digital platform for education spending.
• Priority: For 2025-2026, first priority goes to students with special needs (first 500 ESAs), then dependents of active-duty military in priority schools, with remaining awards based on family income (up to 300% of the federal poverty level).
• Funding: The Legislature appropriated $180 million for the 2025-2026 school year.

Federal Tax Benefits

Starting in 2026, the federal "Big, Beautiful Bill" allows up to $20,000 in annual withdrawals from 529 education savings accounts for qualified K-12 expenses including books, tutoring, and test fees. Previously, the annual cap was $10,000. Additionally, a new federal tax credit of up to $1,700 is available for donations to state-certified scholarship-granting organizations.

Coverdell Education Savings Accounts

All families nationwide may contribute up to $2,000 per year per child to a Coverdell ESA. These funds grow tax-free and can be used for K-12 educational expenses including curriculum, supplies, and tutoring.