529 K–12 Qualified Expense Calculator (2026)
In 2026, qualified 529 K–12 distributions share one $20,000 annual limit per beneficiary. Add tuition and eligible educational expenses to see the qualified amount, any excess, and the old $10,000 tuition-only comparison.
Last updated: October 26, 2026
How it works
- Combine accounts and categories: enter each beneficiary's eligible expenses across all 529 plans for the calendar year. Tuition and the expanded K–12 categories share one $20,000 cap in 2026. IRC §529(c)(7), §529(e)(3); Pub. L. 119-21 §70413
- Check the provider: tutoring or classes must be outside the home, with an unrelated instructor who is licensed as a teacher, has taught at an eligible educational institution, or is a subject matter expert. Educational therapies are for students with disabilities and require a licensed or accredited practitioner or provider. §529(c)(7)(E), (H)
- Keep beneficiaries separate: apply the cap to each child's own expense package. Unused capacity cannot be transferred to another beneficiary. The calculator sums the separately capped qualified amounts.
- Read the comparison as an old-rule baseline: it uses $10,000 of tuition only. The actual category expansion already applied to distributions after July 4, 2025; the $20,000 limit starts with tax years beginning after December 31, 2025. §70413(a)(2), (b)(2)
FAQ
Is $20,000 a separate limit for each expense category?
No. In 2026, tuition and all other qualified K–12 categories share one $20,000 annual limit per designated beneficiary, across all 529 plans. It is not $20,000 per category or per account.
Which tutoring and therapy expenses qualify?
Tutoring or educational classes must be outside the home and taught by an unrelated instructor who is licensed as a teacher in a state, has taught at an eligible educational institution, or is a subject matter expert. Educational therapies for students with disabilities require a licensed or accredited practitioner or provider.
Were tutoring and test fees qualified in 2025?
The expanded categories apply to distributions after July 4, 2025. They were outside the earlier tuition-only rule. This calculator's 2025 comparison is explicitly that old-rule baseline, not a determination for every 2025 distribution.
Can two children each use $13,000?
Yes, assuming the expenses and distributions otherwise qualify. Each beneficiary has a separate $20,000 federal K–12 limit in 2026, so $13,000 each produces $26,000 combined qualified expenses.
Are postsecondary credentialing expenses included?
No. Pub. L. 119-21 §70414 separately added certain postsecondary credentialing expenses. They are not K–12 expenses and are outside this engine. The Trump Accounts versus 529 comparison explains the accounts' different purposes.
What does an amount above the limit mean?
The excess is flagged as above the federal K–12 limit. Non-qualified withdrawals may owe income tax and a 10% additional tax on earnings, subject to applicable exceptions. This calculator computes neither tax nor penalties. State conformity varies.
Methodology
The enacted Pub. L. 119-21 §70413, 139 Stat. 218–219 expands IRC §529(c)(7) and increases the last-sentence limit in §529(e)(3). Section 70413(b)(1) states: The last sentence of section 529(e)(3) is amended by striking “$10,000” and inserting “$20,000”.
The §529(e)(3) sentence, with that substitution, reads: The amount of cash distributions from all qualified tuition programs described in subsection (b)(1)(A)(ii) with respect to a beneficiary during any taxable year shall, in the aggregate, include not more than $20,000 in expenses described in subsection (c)(7) incurred during the taxable year.
This is one aggregate cap across all listed K–12 categories and all plans for the same beneficiary.
For each beneficiary, qualified = min(sum of eligible K–12 expenses, $20,000); above federal K–12 limit = entered expenses − qualified. Household totals sum those individual results; no unused cap is transferred. Enter each child's full annual expenses across accounts, including distributions already taken. This is a calendar-year 2026 federal qualified-amount estimate, not an additional withdrawal allowance and not an income-tax deduction or tax-savings calculation.
Section 70413(a)(1) includes tuition; curriculum and curricular materials; books or other instructional materials; online educational materials; qualifying outside-the-home tutoring or classes; nationally standardized norm-referenced achievement tests, AP exams, or college/university admissions exams; higher-education dual-enrollment fees; and educational therapies for students with disabilities from licensed or accredited practitioners or providers. Tutoring instructors must be unrelated to the student and licensed as a teacher in a state, have taught at an eligible educational institution, or be subject matter experts. Entries assume the statutory school-enrollment and provider conditions are met and are not used for another tax benefit.
Effective dates differ: §70413(a)(2) applies expanded categories to distributions made after July 4, 2025; §70413(b)(2) applies the increased limit to taxable years beginning after December 31, 2025. The comparison row is min(tuition, $10,000) per beneficiary under the 2025 old-rule tuition-only baseline. It does not say tutoring and tests were ineligible throughout 2025; post-enactment 2025 distributions could use the expanded categories under the then-$10,000 aggregate cap.
Federal scope only: state conformity varies; consult your state's plan guidance. Section 70414's separate postsecondary credentialing provision is outside this engine. Non-qualified withdrawals may owe income tax plus a 10% additional tax on earnings, subject to exceptions; earnings, penalties, state recapture, account growth, and contribution deductions are not calculated.
Sources: Pub. L. 119-21 §70413(a)–(b), 139 Stat. 218–219, and §70414 (GovInfo enacted text); IRC §529(c)(7), §529(e)(3) (2024 official text with §70413 amendments) — accessed October 2026Last updated: October 26, 2026 · Reviewed against enacted statuteContinue with OBBBA Tax Center · Trump Accounts family hub · 2026 itemize versus standard guide