A recent change in federal law opens up a new way to pay for your child’s tutoring, test prep, or executive function coaching. The One Big Beautiful Bill Act now allows families to tap into their 529 savings for tutoring services and other educational expenses. So if you’ve already been setting money aside for college, you now have the option to start using those funds to support your child’s K-12 journey, too.
Understanding Recent Updates to 529 Accounts for Tutoring
Here’s what this new option includes:
- Beginning July 4, 2025, families can take out up to $10,000 per child per year for qualifying tutoring, test prep, or executive function coaching without tax penalties (this increases to $20,000 in 2026).
- The sessions must be led by an instructor (certified teacher, former teacher, or subject-matter expert) who isn’t a relative, and your child must be enrolled in a K-12 school.
- Important: If you’re considering this option, contact both your 529 account provider and a tax professional. They’ll help you verify that your specific plan complies with these updated regulations and inform you of any rules that vary by state.
How Educational Connections Meets the Criteria
If you choose to use your 529 funds for tutoring, our services align with the federal requirements, making your withdrawals straightforward and compliant. We offer:
- Professional executive function coaching, subject tutoring, and exam prep from qualified instructors
- Individualized educational strategies designed around your child’s particular challenges, whether they’re working on reading comprehension or tackling challenging science concepts
- An invoice to support your tax-free withdrawals and record-keeping needs
5 Step Process to Use Your 529 Funds for Tutoring
If you’d like to explore using your 529 funds for your child’s tutoring services:
- Reach out to your 529 account provider to verify it now covers tutoring, test prep, or executive function coaching for your student.
- Check your state’s specific regulations and consult with a tax professional about any location-specific tax considerations.
- If this option feels right for your family, get in touch with Educational Connections to develop an individualized support plan that satisfies 529 requirements while meeting your child’s academic goals.
- Transfer your 529 funds to reimburse yourself for your child’s tutoring services.
- Maintain organized documentation of all invoices and session records for your 529 account files.
A New Choice for Supporting Your Child’s Academic Success
Whether you choose to use your 529 funds or another payment method, our expert team is here to support your child and help them strengthen essential skills, boost academic performance, and cultivate lasting study habits.
Schedule a call today to speak with one of our Education Specialists: