Federal changes to qualified education expenses
H.R. 1, passed by the 119th Congress and signed into law on July 4, 2025, contains provisions that impact 529 plans.
Here’s what you need to know:
H.R. 1 expands the definition of qualified education expenses for K-12 beyond only tuition to also include books, materials, testing fees, dual enrollment fees, educational therapies and tutoring costs. Previously, 529 funds could only be applied to tuition expenses up to $10,000 annually. Starting January 1, 2026, the total limit for all K-12 expenses will rise to $20,000 per year.
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