Answers to Frequently Asked Questions on Education Savings Accounts in Iowa.
Q. My daughter is in a BHCS Pre-K program this year. Will she qualify for an ESA as an incoming kindergartener in fall?
A: Yes. All incoming kindergarteners are eligible for an ESA in the 2023-2024 school year regardless of income. ESA funds must be used for an accredited private (nonpublic) school in Iowa.
Q: My kids are currently in a public school. Do they qualify for an ESA next school year even if we are above the income level?
A: Yes. All students who currently attend a public school and choose to enroll in an accredited private school for the 2023-2024 school year are eligible regardless of household income.
Q: Our children already attend BHCS. When are they eligible for an ESA?
A: ESA eligibility for students who are currently enrolled in an accredited private school is based on household income during the first two years of the program. For the 2023-2024 school year, families with household incomes at or below 300% of the federal poverty level (FPL) are eligible. The level increases to at or below 400% FPL for the 2024-2025 school year. Beginning in 2025-2026 school year, all K-12 students who already attend an accredited private school are eligible for an ESA regardless of household income.
Q: We are a family of six with three of our children currently attending a BHCS. What income amount applies for us to be eligible for an ESA next school year?
A: Income eligibility will be determined using the current year’s federal poverty level (FPL) guidelines. The 2023 FPL guidelines were updated on Jan. 19, 2023. For the 2023-2024 school year, families making at or below 300% FPL will be eligible to receive an ESA for their children who currently attend an accredited private school. The following school year, families making at or below 400% FPL will be eligible.
Q: Is income eligibility based on gross income shown on our 2022 federal tax return, 2022 state tax return, or something else?
A: The ESA application process will require proof of income for families whose children are currently enrolled in an accredited private school and applying for an ESA for the 2023-2024 or 2024-2025 school years. Details regarding how applicants will verify income will be provided before the application period opens in the coming months.
Q: My children attend BHCS and we receive tuition assistance from a STO. Are we also eligible for an ESA?
A: Yes. You can receive an ESA in addition to other tuition assistance that may be available to your family.
Q: We homeschool our children. Are they eligible for an ESA if they enroll to take 1-2 classes at an accredited private school?
A: No. Students must be enrolled full time in an accredited private school to be eligible for an ESA.
Q: Our children are currently homeschooled. If we move them to a private school next year, are they eligible for an ESA?
A: Yes, they would be eligible for an ESA regardless of income as long as they are enrolled as a full-time student at an accredited private school.
Q. Can I use ESA funds to pay preschool tuition for my child?
A: No. ESA funds must be used for kindergarten through 12th grade education at an accredited private (nonpublic) school in Iowa.