Alabama Homeschool Funding & CHOOSE Act Guide (2026): Amount, Income Limit & How to Apply

What the CHOOSE Act Is

The CHOOSE Act is Alabama's refundable tax-credit education savings account, passed in 2024. The state funds an account, structured as a refundable income tax credit, that qualifying families spend on approved education expenses through the ClassWallet platform. Home education programs qualify under the act, including individual home schools and families who participate in co-op arrangements. The Alabama Department of Revenue administers the program and manages the application process each year.

The structure of the CHOOSE Act differs from a direct grant. The funds flow as a refundable income tax credit, which means that if the credit exceeds what a family owes in state income taxes, they receive the difference as a refund. For the purpose of day-to-day spending, ClassWallet manages the account, tracks each purchase against the approved list, and keeps the documentation automatically. You apply, qualify, receive your account, and spend within the approved categories through the platform.

Alabama home-educating families have operated for years with complete freedom under the church school exemption and no state interaction beyond association enrollment. The CHOOSE Act is the first time Alabama has offered direct financial support to home-educating families. Taking part is optional and the full legal framework for home schooling in Alabama stays exactly as it was, as covered in the guide to homeschooling in Alabama. This guide focuses on the funding program itself.

How Much You Receive

Home-educating families receive $2,000 per participating student, with a cap of $4,000 per family. A single-student home school receives $2,000. A family with two or more home-educated children reaches the family maximum at $4,000 total, regardless of how many additional students participate. This is a smaller award than the $7,000-plus that some states provide, but for many Alabama families the $2,000 covers a full core curriculum, a tutoring subscription, or a combination of materials that would otherwise come entirely out of pocket.

Confirm the current per-student and per-family amounts at chooseact.alabama.gov before you build your curriculum budget around them, since legislative sessions can adjust funding levels. Before you plan how to spend the award, knowing where your child stands academically gives you a real starting point. A free reading assessment shows you your child's current level so the CHOOSE Act funds go toward curriculum that fits from day one rather than materials you will need to replace a few weeks in.

The Income Limit and Where It Is Headed

This is the eligibility detail to check before anything else. For the 2026-27 year, the CHOOSE Act is open to families with an adjusted gross income at or below 300 percent of the federal poverty level. The federal poverty level adjusts annually, so the exact dollar threshold shifts each year. If your family income falls at or below 300 percent of the current poverty line, you can apply. If it is above that figure, you are not eligible for the 2026-27 cycle.

The income limit is not a permanent feature of the program. The CHOOSE Act includes a phase-out schedule set to remove the income cap and open the program to all Alabama families regardless of income. The exact year the cap lifts can change if the legislature amends the act or adjusts the timeline, so treat published phase-out dates as targets rather than guarantees. If your income is above the current threshold, two things are worth doing: confirm the precise limit at chooseact.alabama.gov rather than relying on prior-year figures, and note the phase-out timeline so you know when to check again. Many families who are over the limit today will qualify once the cap is removed.

What You Can Spend It On

CHOOSE Act funds cover approved education expenses: curriculum and instructional materials, tutoring, and other costs on the program's approved list, all purchased through ClassWallet. The platform automatically tracks every purchase and maintains records tied to your account, which makes end-of-year documentation straightforward. Stay within the approved categories and confirm that a specific purchase qualifies before you make it, since the approved expense list can be updated between cycles.

With $2,000 per child and a $4,000 family cap, most families direct the funds toward a strong core curriculum or a targeted tutoring need rather than spreading the award thin across many small purchases. A single strong language arts program or a math curriculum matched to your child's current level does more than a collection of workbooks and subscriptions at the same total price. Deciding your spending priorities before the funds arrive helps the award do the most good. Our curriculum planning guide walks through what to teach at each grade level, what to prioritize, and how to build a full-year plan before you commit CHOOSE Act funds to specific materials.

How to Apply

Apply at chooseact.alabama.gov, the official program site. The CHOOSE Act has separate application openings for renewing families and for new applicants. Both windows open in the winter and close in the spring for the following school year. Create an account on the site, complete the application, and submit the required income documentation and student information before the window closes. If your application is approved, you set up your ClassWallet account and manage approved spending through the platform for the year.

The window timing matters more than most families expect. The application process closes in the spring, months before the school year begins, so a family that starts planning in late summer has usually missed the cycle for that fall and will need to wait for the next window. Set a calendar reminder for when the window opens and apply as early as you can. Confirm the exact open and close dates at chooseact.alabama.gov each year before you plan around them, since schedules can shift between cycles. Keep copies of your application confirmation and your award notice.

How It Fits With the Church School Exemption

Most Alabama home-educating families operate under the church school exemption in Alabama Code Section 16-28-1, which requires no notice to the district, no testing, and no portfolio. The Alabama homeschooling guide covers that legal framework in full. Taking the CHOOSE Act does not change your church school status, add any legal obligation to your home school setup, or alter the relationship between your family and your church school association. The CHOOSE Act adds a funding layer on top of an existing arrangement.

Keep your records for both systems separately. On one side: your church school enrollment and any documentation your association requires. On the other side: your ClassWallet account and the approved purchases you make through it. The exemption keeps your home school lawful and the CHOOSE Act helps fund it. The two run in parallel without any conflict. Plan your curriculum the same way you would without the CHOOSE Act, and let the funds support that plan. Our curriculum planning guide can help you map out a full school year so you have a clear direction whether or not the award comes through.

A Note from Homeschool Teacher Guide: What This Really Means for You

Alabama's CHOOSE Act is a modest award, $2,000 per child and $4,000 per family, but modest is not nothing, and for a lot of families it covers the core curriculum with room to spare. The two things to check before you count on it are the income limit and the calendar. For 2026-27 you need an adjusted gross income at or below 300 percent of the federal poverty level, though that cap is set to phase out, so if you are over it now, watch for the year it lifts.

The window opens in winter and closes in spring, well before the school year, so a summer decision usually comes too late for that year. Confirm the current amount, income limit, and dates at chooseact.alabama.gov, apply when the window opens, and put your strongest curriculum need first when you spend. The church school exemption that gives your home school its legal standing is unchanged whether you take the CHOOSE Act or not, so there is no downside to applying if you qualify.