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 establish state eligibility. The tracker flags 12 tuition exceptions; primary-source notes and unresolved conflicts appear in the checker. | 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.
Tracker-reported K-12 tuition exceptions (12)
The cited tracker reports these tuition exceptions. State income tax or deduction recapture depends on the jurisdiction and plan. This finding is about K-12 tuition only; it is not extrapolated to college expenses or the expanded categories. Confirm current treatment with the state plan or revenue department.
- California
- Colorado
- Hawaii
- Illinois
- Michigan
- Minnesota
- Montana
- Nebraska
- New Mexico
- New York
- Oregon
- Vermont
Every other state
Federal eligibility does not establish state eligibility; absence from the tracker list is not proof of conformity. But this tool does not provide a complete state-by-state legal determination of the 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. (Nine states — AK, FL, NV, NH, 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?
The statute enumerates curriculum materials, but also requires connection to attendance or enrollment at a public, private or religious elementary or secondary school. Homeschool recognition and state tax treatment are jurisdiction-specific; do not assume federal or state qualification.
Will my state tax the withdrawal?
It depends. The tracker flags twelve tuition exceptions; Connecticut sources conflict, so this tool does not assert its treatment. Absence from the list is not proof of conformity. Arizona, Iowa and Louisiana have source-specific notes in the checker. Verify your exact expense, plan and residency with the state authority before withdrawing.
Where do these numbers come from?
Federal conditions are linked to 26 USC 529. State findings use the cited tracker and primary Arizona, Iowa, Louisiana and New Hampshire sources, with conflicts and limits made explicit. Verification date: . This is general information, not tax advice.