Federal Coverdell Accounts for Homeschool Families
At Miacademy, we’ve been hard at work partnering with various state funding agencies across the country. Our goal is to make a quality education accessible for every student, and we’re accomplishing our goal one state at a time.
Depending on where you live, you can now access Miacademy’s accredited online homeschool curriculum with funding disbursements from your Federal Coverdell ESA account!
What is a Coverdell Account?
Coverdell Education Savings Accounts (ESAs) are tax-advantaged savings accounts for parents to use for their child’s education expenses.
Coverdell ESAs can be used for qualified elementary and secondary education expenses, which include public, private, and religious schools. For homeschool families, the key factor is whether the state you live in recognizes homeschooling as a form of private education. For more detailed guidance, consult state-specific regulations or financial advisors to ensure compliance with both federal and state laws.
The program is intended for students K-12 and into college and can cover expenses such as tuition, books, supplies, and even tutoring. Students can save up to $2,000 per year in a Coverdell ESA up until age 18.
Who Qualifies for the Federal Coverdell ESA?
To qualify for a Federal Coverdell ESA, you must meet the following criteria:
- The beneficiary must be under 18 years old at the time of the contribution.
- The beneficiary must be a U.S. citizen or resident alien.
- There are income limits for contributors: For single filers, the modified adjusted gross income (MAGI) must be less than $110,000, and for joint filers, the MAGI must be less than $220,000.
You are ineligible if:
- The student is over 18 years old at the time of the contribution (except for special needs beneficiaries).
- The contributor’s income exceeds the MAGI limits.
How Do I Get Miacademy with a Federal Coverdell ESA?
To utilize a Federal Coverdell ESA for Miacademy, follow these steps:
- Open a Coverdell ESA:
- Visit your bank or financial institution to open a Coverdell ESA.
- Make sure to provide all necessary documentation, including proof of the beneficiary’s age and citizenship status.
- Contribute to the Account:
- Contribute up to $2,000 per year per beneficiary. Remember that contributions are subject to income limits.
- Enroll in Miacademy.
- Access Funds:
- Request a distribution from your Coverdell ESA to cover the cost of Miacademy’s curriculum.
For more information, visit the Federal Coverdell ESA online, or check your state’s Coverdell usage laws.
If you’re wondering whether Miacademy or MiaPrep would be the best homeschool curriculum for your family, please feel free to chat with one of our helpful customer service agents! They’ll be happy to help you find the answers you need.
FAQ
What can I use the Coverdell ESA for?
The Coverdell ESA can be used for any qualified educational expense (QEE). This includes things such as books, tuition, fees, uniforms and more, from elementary to post-secondary education. However, not all states recognize homeschooling as a QEE, so be sure to check your state’s local regulations before making a withdrawal.
What happens to Coverdell if my child doesn’t go to college?
All funds in your Coverdell ESA must be withdrawn before your child’s 30th birthday. You can choose to withdraw all funding and pay income taxes on any appreciation or transfer the account and funds to a younger sibling.
Information accurate as of: 06/2024. The information provided on this site is intended for research purposes only. Miaplaza is not responsible for any errors, omissions, or outdated information, or for the results yielded through use of this information.