HOME | ORGANIZATIONS | LEGISLATION
This legislation would expand the use of Coverdell Savings Accounts to military families for homeschooling costs, in addition to qualified public, private, or religious schools. It encourages school choice for the families of our active duty men and women and provides them with much needed financial assistance to ensure their students have the tools and resources needed to be successful.
Introduced in House
Referred to the House Committee on Ways and Means
A Coverdell account is an investment tool for parents seeking to save money for their children’s education related expenses, such as tuition, books, and supplies. This type of account is advantageous because its interest and distributions (withdrawals) are tax-free.
Unlike various government voucher programs, Coverdell’s are personal savings accounts that do not use government funds. Instead, a Coverdell operates analogous to a Roth IRA. That is, after-tax money is placed by an individual in their own account, where the money can grow, collect interest, and be withdrawn for eligible education expenses without additional taxes being paid.
The Coverdell accounts can be used to pay for a child’s eligible education expenses. Currently, eligible expenses only include public and private school expenses. This means that only homeschool students in states which define a homeschool as a type of private school can use Coverdell accounts for educational expenses.
HSLDA supports this bill because it allows military homeschool families in all 50 states to use Coverdell Savings accounts.
| Other Resources|