The K-12 withdrawal limit doubled starting in 2026 — and now covers more than just tuition.
How it works
K-12 expenses withdrawn up to the annual per-student limit are qualified and tax-free. Anything withdrawn above that limit is a non-qualified distribution, subject to tax and penalty on its earnings portion.
What this does not include
State tax treatment of 529 K-12 withdrawals varies — not every state conforms to the federal rules, so a withdrawal that’s federally qualified might still have state tax consequences this calculator’s federal-only computation doesn’t address.
How to use this calculator
- Enter K-12 expenses withdrawn this year for one student and the current annual limit.
Frequently asked questions
What counts as a qualified K-12 expense now?
Tuition plus, following the OBBBA’s expansion, books, materials, testing fees, dual enrollment fees, and educational therapies and tutoring — a broader list than tuition alone.
Is the limit per account or per student?
Per student — if a student has multiple 529 accounts (from different family members), the combined K-12 withdrawals across all of them count toward the one annual limit.
Does the K-12 limit affect the college withdrawal limit?
No — 529 plans have no dollar limit at all on qualified higher-education withdrawals; the annual cap applies specifically and only to K-12 expenses.
