Recent changes to §529 rules significantly expand the types of K–12 educational expenses eligible for taxfree 529 plan distributions. Beginning in taxable years after December 1, 2025, families may withdraw up to $20,000 per student per year for qualified K–12 tuition—double the previous $10,000 limit. This increase provides families with greater flexibility to use 529 savings to support private, public, or alternative schooling options.
Newly eligible K–12 expenses include:
Tuition at public, private, or religious elementary and secondary schools
Curriculum, books, and online instructional materials
Tutoring or supplemental educational classes, provided the instructor is qualified and
not related to the student
Standardized testing fees, including AP exams, SAT, and ACT
Dualenrollment course fees for college classes taken during high school
Educational therapies for students with disabilities, such as speech therapy, occupational therapy, or physical therapy
Effective date: Applies to taxable years beginning after December 1, 2025.
Easy Tax Service in Prescott Valley can help if you have any questions about taxes on §529 plans. Our tax preparers have over fifty years of combined experience preparing taxes. Easy Tax Service is open year-round and committed to providing high-quality tax preparation. Please give us a call at 928-775-7000 to schedule an appointment today.