For years, families have used 529 plans to save for college tuition. But a major change in federal law has opened up a massive opportunity to help your child right now.
Under federal law, families can use 529 savings accounts to pay for private, K–12 academic tutoring and test prep.
If you have a high schooler gearing up for the SAT or ACT, this rule change means you can use tax-advantaged 529 funds to pay for Method Learning’s expert tutoring services.
Why Private Tutoring Is Your Student's Secret Weapon for College Admissions
What Does the Law Allow?
You can now use 529 funds to pay for tutoring or educational classes outside the home—including online tutoring and programs at tutoring facilities—as long as the student is enrolled in a public, private, or religious K–12 school.
Crucially for high school families, the law explicitly includes college-admissions examinations and prep. That means SAT and ACT prep programs, as well as our subject-area academic tutoring, are potentially eligible.
Key Rules & 2026 Limits to Keep in Mind
The $20,000 Annual Limit: For 2026, you can withdraw up to $20,000 per student per year across all of their 529 accounts.
The Cap is Shared: This $20,000 limit covers the combined total of all eligible K–12 expenses, including private school tuition, tutoring, books, and college-admissions exam fees.
Keep Clean Records: The IRS requires you to keep detailed invoices. Method Learning provides clear, itemized receipts showing the student’s name, dates of service, and the specific tutoring provided to make documentation easy for you.
Check Your State Plan: While this is allowed federally, state tax treatment can vary. Be sure to check with your specific state’s 529 plan guidelines.
(Please note: Families should confirm eligibility with their 529 plan administrator or tax advisor.)
Give Your Child the Boost They Need—Without the Financial Strain
Whether your student needs to raise their math grade, build confidence, or hit a target score on the SAT or ACT to secure college scholarships, Method Learning is here to help. Now that you can potentially fund these services tax-free through your 529 plan, there’s never been a better time to start.
Ready to help your student succeed?
We will pair you with a tutor who matches your student's needs, and we will design a tutoring package around your goals.