Does this expense qualify under the new 529 rules?
The One Big Beautiful Bill Act expanded what 529 plans can cover for K-12 — tutoring, curriculum, test fees, educational therapy and more — and doubled the annual cap to $20,000 for 2026. Pick an expense and your state to see how it's treated, then size it against the cap.
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K-12 cap calculator
The federal annual K-12 cap is $10,000 per beneficiary for 2025 and $20,000 from 2026. See how much of a planned K-12 spend falls within it this year.
What OBBBA changed for K-12 529 use
Two separate changes, with two effective dates. Everything below is from the sources linked in the table and re-verified on the stamped date.
| Change | Detail | Effective | Source |
|---|---|---|---|
| Higher annual K-12 cap | $10,000 → $20,000 per beneficiary, per year. | $20,000 from tax year 2026 (tax years beginning after Dec 31, 2025). | savingforcollege.com, verified ↗ |
| Expanded qualified expenses | Curriculum & instructional materials, online materials, tutoring (conditional), standardized/AP/college-admission test fees, dual-enrollment fees, and educational therapy for students with disabilities. | Distributions after enactment (July 4–5, 2025). | Chase, verified ↗ |
| Tutoring conditions | Tutor not related to the student, tutoring outside the home, and the tutor is a state-licensed teacher, has taught at an eligible institution, or is a subject-matter expert. | Same as expanded expenses. | Western CPE, verified ↗ |
| State conformity | Federal qualification does not guarantee your state agrees; 13 states don't treat K-12 tuition as state-qualified, and conformity to the expanded categories is unconfirmed in most states. | Varies by state & legislative session. | savingforcollege.com, verified ↗ |
OBBBA also expanded 529 use to certain postsecondary credentialing / workforce programs (not subject to the K-12 cap). This tool focuses on K-12.
State conformity — read this before you withdraw
OBBBA changed federal rules. Your state's income-tax treatment is separate, and this is where families get surprised. We report only what is sourced and say "verify with your state" everywhere else — we never guess a state's status.
States that do NOT treat K-12 tuition as state-qualified (13)
In these states a 529 withdrawal for K-12 tuition is a non-qualified distribution for state income tax — the earnings portion can be taxed and prior state deductions may be recaptured (federal tax-free treatment can still apply). Because they don't conform even on tuition, they almost certainly don't conform on the newer expanded categories.
- California
- Colorado
- Connecticut
- Hawaii
- Illinois
- Michigan
- Minnesota
- Montana
- Nebraska
- New Mexico
- New York
- Oregon
- Vermont
Every other state
K-12 tuition generally follows the federal treatment. But no published source yet confirms state-by-state conformity to the OBBBA-expanded categories (curriculum, tutoring, test fees, dual enrollment, educational therapy) — states "may take time to adopt" them. Treat the expanded categories as unconfirmed at the state level and verify with your plan and revenue department. (Eight states — AK, FL, NV, SD, TN, TX, WA, WY — have no state income tax, so a withdrawal has no state income-tax consequence.)
Use the state picker in the tool above for your state's status. Source: savingforcollege.com — states that do not conform with federal 529 tax laws ↗, verified .
FAQ
What did the OBBBA change about 529 plans for K-12?
It expanded the qualified K-12 expense categories and raised the annual cap. The expanded categories — curriculum and instructional materials, online educational materials, tutoring (with conditions), standardized/AP/college-admission test fees, dual-enrollment fees, and educational therapy for students with disabilities — apply to distributions after enactment (July 4–5, 2025). The annual K-12 withdrawal cap rises from $10,000 to $20,000 per beneficiary starting in tax year 2026.
How much can I withdraw for K-12 in 2026?
Up to $20,000 per beneficiary per year for qualified K-12 expenses in tax year 2026 (it was $10,000 in 2025). The cap is federal and applies per beneficiary across all of their 529 accounts. It doesn't apply to qualified college expenses.
Does tutoring qualify?
Only conditionally. The tutor must not be related to the student, the tutoring must be provided outside the home, and the tutor must be a state-licensed teacher, have taught at an eligible educational institution, or be a subject-matter expert in the tutored subject. Keep records of the tutor's credentials. Treasury/IRS may refine these conditions in future guidance.
What about homeschooling?
Homeschooling was excluded under the 2017 Tax Cuts and Jobs Act. Under OBBBA, homeschool curricula are generally reachable through the new "curriculum materials / textbooks / instructional materials" category. The statute enumerates those materials rather than the word "homeschool" itself, and state conformity to the expanded categories is unconfirmed in most states — verify with your state.
Will my state tax the withdrawal?
Maybe. Thirteen states don't treat even K-12 tuition as state-qualified (listed above), so a K-12 withdrawal there is state-non-qualified and may trigger recapture. Other states generally follow federal treatment for tuition, but conformity to the new expanded categories is unconfirmed — so verify with your state plan and revenue department before withdrawing.
Where do these numbers come from?
From public professional sources — savingforcollege.com, Chase, BlackRock/John Hancock, Western CPE and others — cross-checked against each other and linked in the table above. Each carries a last-verified date (currently ). This is general information, not tax advice.