More ways to use 529 funds for K-12 expenses

K-12 parents, rejoice: If you’ve ever wished you could use 529 funds for your student’s education costs besides tuition, you now have that flexibility.

Previously, money saved in a 529 account could only be utilized for K-12 tuition expenses. Recent federal legislation, however, has expanded qualified education expenses for K-12 attendance or enrollment at a public, private or religious elementary or secondary school.

Additionally,the annual limit for all K-12 expenses increases to $20,000 as of January 1, 2026. The prior limit was $10,000.

As well as tuition, you can incorporate the following as K-12 expenses:

Curriculum, curricular materials
Books and other materials

If your student needs materials to support their K-12 journey, you can apply 529 funds to those expenses. That means items such as textbooks, individual copies of books for English classes, art supplies, study guides, software, subscriptions to educational publications, etc., could be covered. You can also use funds for online educational materials such as educational software or learning programs.

Tutoring or educational classes

Perhaps your student could use a tutor to level up their skill set in a particular subject area, but for whatever reason, it was out of reach. It’s now a possibility to use 529 funds for tuition for tutoring or educational classes outside of the home. Your student could even attend a tutoring facility. The key is that the tutor can’t be related to the student and must be either a licensed teacher, a current or former teacher at an eligible educational institution or a subject matter expert in the relevant subject.

Fees for tests and dual enrollment

You’re proud of your student’s efforts during high school — now, you can use 529 money to pay for their end-of-year Advanced Placement test fees, as well as any nationally standardized achievement test or college admissions/entrance exam, such as the SAT or ACT. And, if your student takes dual or concurrent enrollment classes through a college or university while attending high school, those fees are covered too.

Educational therapies

If you would like to use 529 funds to pay for your student’s educational therapy, that’s also covered in the new legislation. The law adds educational therapies as a qualified expense for students with disabilities, including occupational, behavioral, physical and speech-language therapies. The therapy must be provided by a licensed or accredited practitioner or provider.