This bill makes it easier for families to use 529 college savings plans to pay for K-12 education expenses without owing taxes on the money. Right now, you can only use these plans tax-free for up to $10,000 per year toward private or religious school tuition. This bill expands that to cover a much wider range of education costs, including homeschooling tuition, textbooks, online courses, tutoring, test fees, and special educational therapy for students with disabilities. Essentially, if you've been saving money in a 529 plan for your child's college education, you'll now have the flexibility to use some of that money for their K-12 education needs without paying taxes on those withdrawals. This could help families who homeschool or who want to supplement their child's regular schooling with tutoring or other educational services. The main benefit is that families get more options for how to use their education savings, and they keep more of their money by avoiding taxes on these withdrawals.

Student Empowerment Act

Cruz, Ted

Student Empowerment ActThis bill expands the education-related expenses that may be paid for with tax-free distributions from a qualified tuition program (also known as a 529 plan) to include certain expenses related to elementary, secondary, and homeschool education.Under current law, distributions from a 529 plan are excluded from gross income if they are used to pay for qualified higher education expenses, which includes up to $10,000 (per year and per beneficiary) for tuition at an elementary or secondary public, private, or religious school.The bill expands the education-related expenses that may be paid for with tax-free distributions from a 529 plan to include tuition related to&nbsp;homeschooling and the following expenses related to elementary, secondary, and homeschool education:<ul><li>curriculum and curricular materials,</li><li>books or other instructional materials,</li><li>online educational materials,</li><li>tutoring or educational classes outside the home,</li><li>testing fees,</li><li>fees for dual enrollment in an institution of higher education, and</li><li>educational therapies for students with disabilities.</li></ul>