If you’ve got a 529 college savings account, we’ve got good news: tutoring is now a qualified expense.
Thanks to the One Big Beautiful Bill Act, families can use tax-free 529 withdrawals to cover K-12 tutoring, effective for any distributions made after July 4, 2025. And starting in 2026, the annual withdrawal limit for K-12 expenses doubles from $10,000 to $20,000 per student, giving families a lot more room to invest in extra academic support without dipping into other savings.
What Qualifies
Not every tutoring arrangement fits the rules, so here’s what the IRS is looking for.
The tutoring has to happen outside your home, and the tutor can’t be a relative of the student. Beyond that, the instructor needs to be a licensed teacher in any state, have taught at an accredited institution, or be a recognized subject-matter expert. Standardized test prep and dual-enrollment support are covered too, alongside general subject tutoring. 605Tutor and Natalie Micheel are recognized subject-matter experts.
One Thing to Know
529 plans are federally tax-advantaged, but states don’t all play by the same rules. Some states don’t treat K-12 withdrawals as qualified for state tax purposes, so it’s worth a quick conversation with your accountant or tax advisor before you withdraw, just to confirm how it works where you live.
What This Means for Your Family
If you’ve been putting off extra tutoring support because of the cost, this is worth a second look. Money you’ve already set aside for your child’s education can now go directly toward the kind of one-on-one support that makes the biggest difference, without adding a new line item to your budget.
Have questions about whether our sessions would qualify, or want help figuring out the numbers? Reach out and we’re happy to walk through it with you.
Want to make sure your 529 dollars go toward support that actually works? Book a free discovery call with the button below.
This post is for general information and isn’t tax advice. Please confirm details with your own accountant or tax professional based on your state and situation.
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Natalie Micheel, Certified Executive Function Coach at BestEFC.com, helps students move from overwhelmed and stuck to prepared, motivated, and empowered. If you’d like to see how Executive Function Coaching could support your student, you can schedule a free discovery call or try a first session to get started. Go to BestEFC.com/Contact. I am excited to hear what you want to accomplish!
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