Updated Oct. 29, 2026
A tutoring bill, an AP exam fee or books for an apprenticeship may be eligible expenses for a family’s 529 account. Before making a withdrawal, it helps to check the specific cost, the student’s eligibility and the calendar.
Federal changes have widened the ways these education accounts can be used. For families in Snohomish County and on Camano Island, the useful question is which rules apply to their own account and expenses.
How 529 accounts work
A 529 plan lets people set aside money for education. Earnings receive federal tax benefits when withdrawals cover qualifying costs. Washington offers GET, a prepaid tuition program, and WA529 Invest, an investment savings plan formerly called DreamAhead.
The two work differently. GET prepays tuition through units; an investment account’s value changes with its investments. WA529 explains the differences and the tax benefits.
The K–12 limit is $20,000 in 2026
Beginning Jan. 1, 2026, the annual limit for qualifying K–12 withdrawals rose to $20,000 per student across all of that student’s 529 accounts. The figure is a tax-rule ceiling for spending money already in an account.
The IRS’s current guidance covers expenses connected with enrollment or attendance at public, private or religious elementary and secondary schools. Eligible categories include:
- Tuition, curriculum, books and other instructional materials.
- AP exams, college-admission exams and specified nationally standardized achievement tests.
- Fees for dual enrollment at a higher-education institution.
- Qualifying tutoring or educational classes outside the home.
- Educational therapies for students with disabilities, provided by a licensed or accredited practitioner or provider.
Tutoring has an important condition: the instructor must be unrelated to the student and either hold a teaching license in a state, have taught at an eligible educational institution, or be a subject-matter expert in the relevant subject. Those conditions appear in Section 529(c)(7)(E) of the federal tax code.
If parents and grandparents have separate accounts for the same child, coordinate withdrawals. The $20,000 annual K–12 limit applies to their combined qualifying withdrawals.
College, apprenticeships and career credentials
College tuition and required books, supplies and equipment remain eligible expenses at qualifying institutions. Computers and internet access have student-use conditions. Room and board can qualify for students enrolled at least half-time, subject to limits; ask the school for its eligible amount.
Other uses include required fees, books, supplies and equipment for federally registered and certified apprenticeships. Certain costs of recognized postsecondary credential programs also qualify, including testing required to obtain or maintain a credential and continuing education required to maintain it. Check the particular program against the WA529 expense guide before withdrawing money.
Qualified student-loan principal and interest payments for the account beneficiary or an eligible sibling have a separate $10,000 lifetime limit per borrower, across qualifying 529 loan payments. Interest paid from the tax-free earnings portion of a 529 withdrawal cannot also support a student-loan-interest deduction.
What Washington families should check
Washington offers no state income-tax deduction for 529 contributions. Contributions also receive no federal income-tax deduction. The federal benefit concerns account earnings and qualifying withdrawals.
If you file a state income-tax return elsewhere, check that state’s treatment. WA529’s expanded-use explanation says state tax treatment depends on where you file.
WA529 also cautions that GET and WA529 Invest are designed for postsecondary education, rather than short-term K–12 saving. Using funds now leaves less available for later education.
Before requesting a withdrawal
- Match the year. WA529 instructs account owners to take withdrawals in the same calendar year the qualifying expenses are incurred.
- Keep records. Save invoices, receipts, payment dates and withdrawal confirmations, including details showing a tutor or program qualifies.
- Coordinate tax benefits. The same expenses cannot support both tax-free 529 treatment and an American Opportunity or Lifetime Learning credit. Tax-free scholarships also affect the available expense amount.
- Check uncertain costs first. Ask the plan administrator or a qualified tax adviser before withdrawing. Nonqualifying withdrawals can make part of the earnings taxable and may bring an additional 10% federal tax on taxable earnings, with exceptions.
The IRS explains the credit and withdrawal rules in Publication 970, Chapter 7. Its current edition covers 2025 returns; use the current IRS topic page and WA529 guidance for the 2026 K–12 limit.
Sources checked Oct. 29, 2026: IRS, WA529 and the U.S. Code. This is a general guide; individual tax treatment depends on the account, expenses and taxpayer’s circumstances.
