Iowa School Choice Options
Iowa families have two main money programs to know about. The first is the Tuition and Textbook Credit on your state tax return. Homeschool families under private instruction can claim it. The credit is 25 percent of the first $2,000 you spend per child. That means up to $500 for each child. It covers textbooks and other materials for subjects taught in public schools. Costs tied to teaching religion do not count. Neither do food, lodging, or clothing. The second program is the Students First Education Savings Account. It pays tuition at accredited nonpublic schools only. It does not pay for homeschooling. For 2026-27, a full-year account is worth $8,148.
Day to day, keep receipts and a list of costs for each child. Enter the credit on line 9 of your IA 1040. Do not count costs paid with ESA money. If you file separately, only the spouse who claims the child takes the credit. Homeschool families who file Form A can dual enroll for public school classes and sports. Iowa was not on the IRS list for the new federal scholarship tax credit. That list was dated October 22, 2026. For full details on each topic, open the sections below.
Taxpayers with dependents receiving private instruction in Iowa (homeschooling) may take a credit for each dependent for amounts paid for tuition and textbooks. The credit is 25 percent of the first $2,000 of qualifying expenses per dependent, up to $500 each (Iowa Department of Revenue: Tuition and Textbook Credit).
Eligible: Textbooks and other instructional materials used in teaching subjects legally and commonly taught in Iowa schools, and tuition for competent private instruction (Iowa DOR).
Not eligible: Food, lodging, or clothing; amounts for teaching religious tenets, doctrines, or worship; tutoring not paid to a school; and purchases made with Students First ESA funds (Iowa DOR).
Keep records showing each dependent’s name, qualifications for private instruction, and an itemized list of expenses. Enter the credit on IA 1040, line 9 (Iowa DOR).
Students First ESAs fund tuition, fees, and other qualified expenses at accredited nonpublic schools in Iowa. All Iowa resident K-12 students who enroll in an accredited nonpublic school are eligible regardless of income. For 2026-27, a full-year ESA is $8,148 and a half-year ESA is $4,074. HF 2754 created a half-year application window, open October 15 through November 15, 2026 (Iowa DOE: Education Savings Accounts).
ESAs do not pay for homeschooling, because the student must enroll in and attend an accredited nonpublic school (Iowa DOE).
The federal scholarship tax credit (Internal Revenue Code section 25F) begins January 1, 2027, in states that opt in. Iowa was not on the IRS list of participating states as of October 22, 2026 (IRS: FSTC Participating States).
Families who file Form A and dual enroll by September 15 may take public school classes and extracurricular activities. All options may use parent-taught driver education, the local driver education program, and free testing (HSLDA). HF 2754 (2026) removed IPI limits on unrelated students and tuition and requires parent-issued diplomas to be accepted like public school diplomas (Iowa DOE Technical Assistance; Iowa Capital Dispatch). See our Iowa Homeschool Laws page.
- Iowa Department of Revenue: Tuition and Textbook Credit (K-12)
- Iowa Department of Education: Students First Education Savings Accounts
- IRS: Federal Scholarship Tax Credit Participating States (as of October 22, 2026)
- Iowa DOE: Technical Assistance on 2026 Legislation; Iowa Capital Dispatch; HSLDA
Last reviewed: November 4, 2026
*The information on this page is for general use only. It should not be taken as legal advice. It is believed to be accurate however state and federal laws change every year. Homeschool.net recommends joining an organization such as the Home School Legal Defense Association before your homeschooling adventure begins. HSLDA can provide complete, accurate, legal advice and services for homeschooling families.
Update History
No changes in law noted since this page was first published.