Thanks to a major update to 529 savings plans, more families can now access affordable math support.
Under the One Big Beautiful Bill Act (OBBBA), parents may use up to $10,000 per year in 2025, rising to $20,000 in 2026, to pay for qualified K–12 tutoring, including personalized math instruction at Mathnasium.
In this guide, we’ll explain what the new law covers, how to use your 529 plan for tutoring, and what steps to follow to stay compliant.
WHAT ARE 529 PLANS AND HOW HAVE THEY EVOLVED?
A 529 plan is a tax-advantaged savings account originally created to help families pay for college tuition and related higher education expenses.
With the passage of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, 529 plans were expanded to cover a wider range of K–12 educational costs.
For the first time, families can use these funds for academic support services, including tutoring, curriculum materials, standardized test fees, and online educational resources.
At the federal level, these expanded uses are considered qualified withdrawals, meaning they are not taxed. Families should consult their state’s 529 policies or speak with a tax advisor to ensure compliance with both federal and state guidelines.
This change lets families apply their education savings to immediate academic needs during the K–12 years, not just to future college costs.
HOW DOES THE OBBBA UNLOCK TAX-FREE MATH TUTORING?
Under the OBBBA expansion, tutoring now qualifies as a 529-eligible expense, but only if it meets specific criteria outlined by federal law.
To qualify under federal law, the tutoring must be:
Provided by a licensed or expert instructor
Conducted outside the home
Delivered by someone not related to the student
It must also be tied to the student’s K–12 enrollment or attendance, including homeschooling in states that define homeschooling as private education.
Texas, for example, recognizes it as such. Families should confirm how their state classifies these programs.
Withdrawals for tutoring fall under the same federal limits as other K–12 expenses: $10,000 per beneficiary in 2025, increasing to $20,000 in 2026.
As state-level treatment may vary, it’s important to confirm how your state applies these rules.
HOW TO USE 529 FUNDS FOR K–12 TUTORING AT MATHNASIUM
Using 529 savings for tutoring involves more than just making a withdrawal.
To ensure compliance with the new federal rules under OBBBA, families should follow a few key steps to confirm eligibility, understand their plan’s terms, and avoid unexpected tax consequences.
Step 1: Confirm Your Program Qualifies
Tutoring must meet specific federal criteria to qualify for a tax-free withdrawal.
Reach out to your local Mathnasium center to confirm that your student’s program meets the requirements. This typically includes instruction by a qualified tutor, delivered in person and aligned with K–12 academic goals.
Step 2: Review Your 529 Plan Provider’s Policy
Not all 529 plans automatically reflect the latest federal updates.
Contact your provider to ensure they’ve implemented the OBBBA changes and that tutoring is now recognized as a qualified expense under your plan.
Step 3: Understand Your State’s Tax Rules
While tutoring is federally recognized, state tax treatment may vary.
States like Texas conform to the new rules, but others, such as California, may still impose taxes or penalties on tutoring-related withdrawals. Check with your plan or a tax advisor for state-specific guidance.
Step 4: Track Annual Limits
The total amount you can withdraw for K–12 expenses is capped at $10,000 per beneficiary in 2025, increasing to $20,000 in 2026.
Be sure all eligible expenses, tutoring included, stay within this limit.
Step 5: Keep Detailed Records
Maintain clear documentation for any tutoring expenses you intend to cover with 529 funds.
Store receipts and invoices in the same calendar year as the withdrawal, in case you need to show proof of qualified use.
Step 6: Consult a Tax Professional
To avoid confusion, especially if you live in a non-conforming state, speak with a tax advisor.
They can help you navigate both federal and state-level implications and ensure you get the most benefit from your 529 account.
WHY IS USING 529 FUNDS FOR MATH TUTORING A SMART INVESTMENT?
With the recent expansion of 529 plan eligibility, families are facing a new kind of decision. The funds once designated for college expenses can now also be applied earlier in a child’s education.
For those looking at academic tutoring, it matters which subject receives that investment. Math is a top candidate, not because it’s difficult, but because of how often it influences what comes next.
Math affects far more than grades. It often determines how prepared they are for competitive programs, how confident they are in the academic setting, and how they handle unfamiliar challenges.
Math support during the K–12 years can also improve outcomes in several areas that affect college admissions and beyond:
Access to College of Choice: The math sections of the SAT® and ACT® account for a significant portion of each exam. Students with stronger skills tend to score higher, which can lead to broader access to competitive schools. Targeted math instruction in the middle and high school years can improve performance without last-minute pressure.
Scholarship Access: Many merit-based scholarships rely on academic performance. Math often influences a student’s GPA, and high test scores can unlock financial aid. Investing in math support during the K–12 years can increase eligibility for scholarships that reduce the cost of college later.
College Readiness: Math is required in nearly all undergraduate degree paths, whether or not a student chooses a technical major. Students who enter college with gaps in their understanding often need remedial coursework, which can delay progress toward a degree. A stronger foundation before graduation can ease that transition and help students meet expectations from day one.
Career Preparation: Fields like computer science, finance, health sciences, engineering, architecture, and data analytics depend on math. Even outside those disciplines, strong math habits support reasoning, pattern recognition, and decision-making under pressure.
HOW MATHNASIUM SUPPORTS FAMILIES USING 529 FUNDS FOR TUTORING
Mathnasium is a math-only learning center, trusted by more than one million parents, and structured to help K-12 students of all skill levels reach math mastery.
Our program meets federal criteria for qualified tutoring under the OBBBA guidelines and provides a focused, methodical structure for long-term academic growth.
At the core of our work is the Mathnasium Method™, a proprietary teaching approach that has helped students across grade levels build lasting confidence, skills, and love for math as a subject.
Our proven method brings together:
Granular Personalization: Every student begins with a diagnostic assessment that identifies strengths and gaps. Based on the results, we build a personalized learning plan that meets them where they are and supports steady progress toward mastery.
Teaching for Understanding: We use clear language, visual models, Socratic questioning, and multiple modes of instruction to help students make sense of math in a way that connects with how they learn best.
Specially Trained Instructors: Our tutors are not only fluent in math content, they’re trained to teach in ways that align with how students learn in today’s classrooms. This combination of subject expertise and instructional training meets the federal standard for qualified tutoring under OBBBA.
Emphasis on Critical Thinking and Problem Solving: We guide students through unfamiliar problems by encouraging them to ask questions, test ideas, and reason through each step. This process builds confidence and equips them to handle new challenges in math and in life.
Singular Focus on Math: With decades of experience and a curriculum built entirely around math, we go deeper into how students learn, absorb, and retain concepts at every level.
A Confidence-Building Environment: Students learn in a space that’s structured, supportive, and motivating. We recognize effort, celebrate progress, and encourage persistence because confidence grows when progress is seen and felt.
Enrollment at Mathnasium brings measurable results:
94% of parents report an improvement in their child’s math skills and understanding
90% of students saw an improvement in their school grades
93% of parents report improved attitude toward math after attending Mathnasium
With this structure in place, eligible families can now use their 529 savings to enroll in a program built for lasting growth in math, not just short-term gains.
EXPLORE THIS NEW OPPORTUNITY AT MATHNASIUM
Mathnasium operates over 1,000 learning centers across the country, each built on a shared commitment to helping students strengthen their math skills and build lasting confidence.
For families in and around San Antonio, TX, Mathnasium of Villages of Westcreek is a trusted local resource, offering personalized math instruction and caring guidance, both in-center and online.
Texas conforms to federal 529 rules, which means eligible families can now use their education savings to support qualified tutoring at Mathnasium.
How to Enroll at Mathnasium of Villages of Westcreek
Families who qualify can take three easy steps to begin:
Schedule an Assessment: We begin with a diagnostic assessment to identify what your child already knows and where support is needed.
Receive a Personalized Learning Plan: Based on the results, we build a customized plan that targets your child’s unique learning goals.
Start Your Sessions: Your child begins regular sessions with specially trained math instructors in a structured, supportive learning environment.
Ready to take the first step?
📅 Schedule a Diagnostic Assessment at Mathnasium of Villages of Westcreek
Have questions about 529 eligibility or how to get started?
Call us at (210) 568-7811 or stop by our center.
We are located at 12370 Potranco Road, San Antonio, TX 78253
(210) 568-7811
(210) 361-5480
