Paying for Tutoring
Can You Use a 529 Plan for Tutoring?
Yes, under federal law. Since July 4, 2025, a 529 plan can pay for K-12 tutoring, with conditions on who the tutor is, along with SAT, ACT, and AP exam fees. The catch is your state: some still tax the withdrawal.
K-12 limit per student
$20,000
a year, from 2026
Tutoring qualifies since
July 2025
with conditions
States that still tax it
4
of 15 checked
What the law says about tutoring
The K-12 expenses a 529 plan can pay for now include:
“Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and (i) is licensed as a teacher in any State, (ii) has taught at an eligible educational institution, or (iii) is a subject matter expert in the relevant subject.”
So three things have to be true:
- The tutoring or class happens outside the home, which the law says includes a tutoring facility.
- The tutor is not related to the student.
- The tutor is a licensed teacher in any state, has taught at an eligible educational institution, or is a subject matter expert in the subject.
The law does not define “outside of the home” or “subject matter expert,” and we did not find IRS guidance that does. Online tutoring is not addressed either way.
Everything a 529 can pay for in K-12
- Tuition
- Curriculum and curricular materials
- Books and other instructional materials
- Online educational materials
- Tutoring or classes outside the home, with conditions on who the tutor is
- Fees for standardized achievement tests, AP exams, and college admission exams
- Dual enrollment fees
- Educational therapies for students with disabilities
The combined limit is $20,000 a year per student. Test fees are covered by this wording:
“Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission.”
How each state treats it
Federal law decides the federal tax. Your state decides its own, and several do not follow the federal K-12 rules.
| State | Plan | K-12 withdrawals |
|---|---|---|
| California | ScholarShare 529 | Taxed by the state |
| Texas | Texas College Savings Plan | No state income tax |
| Florida | Florida Investment 529 Plan | No state income tax |
| New York | New York's 529 College Savings Program | Taxed by the state |
| Illinois | Bright Start | Taxed by the state |
| Pennsylvania | PA 529 | State tax-free |
| Ohio | Ohio's 529 Plan, CollegeAdvantage | State tax-free |
| Georgia | Path2College 529 Plan | State tax-free |
| North Carolina | NC 529 Plan | State tax-free |
| New Jersey | NJBEST | Not settled |
| Virginia | Invest529 | State tax-free |
| Massachusetts | MEFA U.Fund | Not settled |
| Washington | WA529 Invest | No state income tax |
| Arizona | AZ529 | Not settled |
| Colorado | CollegeInvest | Taxed by the state |
Frequently asked questions
Can I use a 529 plan to pay for tutoring?
Under federal law, yes, for a K-12 student. A law enacted July 4, 2025 added tutoring to the K-12 expenses a 529 can pay for. The tutor cannot be related to the student and must be a licensed teacher, someone who has taught at an eligible educational institution, or a subject matter expert in the relevant subject. Your state may still tax the withdrawal.
Can a 529 pay for SAT or ACT fees and test prep?
Registration fees for the SAT, ACT, AP exams, and nationally standardized achievement tests are a qualified K-12 expense. Test prep is not named separately: it qualifies only if it meets the tutoring rule, meaning tutoring or classes outside the home from an unrelated tutor who meets one of the three qualifications.
How much can I take out of a 529 for K-12 expenses?
$20,000 a year per student across all of that student's 529 accounts, for tax years beginning after December 31, 2025. Before that the limit was $10,000.
Which states tax 529 withdrawals used for K-12?
Of the 15 states we checked, California, New York, Illinois, and Colorado treat K-12 withdrawals as nonqualified for state tax, so the earnings are taxed by the state and, where the state gave a deduction, it can be taken back. Check your own state's plan before withdrawing.
What counts as a subject matter expert?
The law does not define it, and we did not find IRS guidance that does. If you plan to rely on that category, keep records of the tutor's qualifications and ask a tax professional.
What happens if a withdrawal does not qualify?
The earnings portion is included in your income and is generally subject to a 10% additional federal tax, with exceptions such as a scholarship. Your contributions come back untaxed.
Federal rules: Public Law 119-21, sections 70413 and 70414; IRS Tax Topic 313; IRS Publication 970. State rules: each state's official 529 plan documents, linked on its page. Read October 6, 2026. This page is general information, not tax advice.
