Parents Can Now Use 529 Funds for Tutoring and Test Prep — Here’s How
- Virag Gulyas
- Aug 20
- 2 min read
For years, 529 college savings plans have been one of the best ways for families to invest in their children’s education. Traditionally, these funds could only be used for college expenses and, more recently, K–12 tuition. But as of July 4, 2025, a major change has made 529 plans even more valuable for families with middle school and high school students:
✅ Tutoring and test prep services now qualify as eligible expenses.

That means you can tap into your child’s 529 account to cover personalized academic support and standardized test preparation — two of the most important investments in their future success.
What Changed with 529 Plans?
Under the updated federal rules:
Tutoring services are now eligible, including subject-specific support and standardized test preparation.
Test fees and prep programs such as the SAT, ACT, AP exams, and college readiness courses are covered.
Annual limits: Families can withdraw up to $10,000 per student per year through the end of 2025. Starting in 2026, the cap doubles to $20,000 per year.
As always, some state rules may differ, so it’s important to confirm the details with your state’s 529 plan administrator or tax advisor.
Why This Matters for Families
This change helps families in three important ways:
Maximizing savings – You don’t need to dip into separate savings accounts to cover tutoring or prep classes.
Leveling the playing field – Students who need extra academic support can now get it with funds that were already set aside for education.
Investing earlier – Instead of waiting until college, you can put your education savings to work during critical middle and high school years.
How Carmel Valley Test Prep Fits In
At Carmel Valley Test Prep, we specialize in one-on-one tutoring and personalized test preparation that meets the standards required for 529 plan eligibility:
Expert instructors – Our tutors are highly qualified, with expertise ranging from SAT and ACT mastery to AP-level coursework.
Proven track record – Our students consistently earn top scores, including perfect SAT/PSAT results and National Merit recognition.
Flexible options – Whether in-person at our Carmel Valley office or through live online sessions, we make tutoring convenient for busy families.
In short: we offer exactly the kind of qualified educational services that 529 funds are now designed to cover.
Taking the Next Step
If you’ve been waiting for the right time to invest in tutoring or test prep, now is the perfect opportunity. With this expansion of 529 plan benefits, families can support their children’s academic success without adding financial strain.
📅 Schedule a free consultation today to learn how Carmel Valley Test Prep can help your student reach their full potential — and how you can use your 529 plan to cover the cost.
Remember, while the federal government now recognizes tutoring and test prep as eligible expenses, state tax treatment can vary. Families should confirm with their plan administrator or financial advisor before making withdrawals.
By taking advantage of this new benefit, you’re not just preparing your child for college — you’re making the most of the resources you’ve already set aside for their education.
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