Alabama doesn’t just offer one path to homeschooling funding. There are actually three distinct programs, and knowing which one fits your situation could save you thousands.
Here’s what’s available and how they compare.
1. CHOOSE Act ESA Program
This is Alabama’s newest option. The state deposits funds directly into your ClassWallet account that you manage yourself. You get $7,000 per student for private school or $2,000 for homeschooling. The catch? Income limits apply during the early years, and applications only open January through April.
2. Parent-Taxpayer Refundable Tax Credit
Part of the Alabama Accountability Act of 2013, this program works differently. If your child is zoned for a “failing” public school and you move them to an approved private school, you pay tuition upfront out of pocket. Then you claim a refundable credit when you file your Alabama state tax return.
The credit amount? Whichever is lower: your actual tuition cost or the annual state cap. You can also claim this for mandatory fees if transferring to a non-failing public school.
3. Alabama Education Scholarship Program
This one runs on private donations. Individuals and businesses donate to Scholarship Granting Organizations (SGOs), which then award scholarships directly to eligible K-12 students.
Unlike the tax credit, you don’t pay tuition upfront. The scholarship goes straight to your child’s school. And unlike the CHOOSE Act, there’s no digital wallet to manage. The donors (not families) receive the tax credit.
Can You Use More Than One?
No. Students can only participate in one program at a time.
Each program serves a different need. The CHOOSE Act offers the most flexibility, the tax credit helps at tax time, and the scholarship program requires no upfront payment. The right choice depends on your income, your child’s school situation, and when you need the money.
Get Started: Visit chooseact.alabama.gov or contact ClassWallet at help@classwallet.com or 877-969-5536 (Monday-Friday 7am-7pm CT, Saturday 9am-3pm CT).
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