Information current as of October 2026.
Available now
529 plans can pay for more K-12 costs
A 2025 federal law (Public Law 119-21) expanded what 529 savings can pay for in grades K-12. For withdrawals after July 4, 2025, that includes curriculum, books, instructional materials, online materials, outside tutoring, tests, dual enrollment, and certain therapies.
The yearly limit is $20,000 per student starting January 1, 2026 (it was $10,000 through 2025).
For homeschoolers, this is a gray area. The law ties these expenses to a “public, private, or religious school” and doesn’t mention homeschooling. It’s clearest in states where the law treats a homeschool as a private school. Please talk to a tax professional first. Our Tax Breaks & 529 Plans page explains more.
Trump Accounts for young children
The Treasury will deposit a one-time $1,000 into a new account for U.S.-citizen children born from January 1, 2025 through December 31, 2028. Parents elect it on IRS Form 4547.
These accounts can’t be used for homeschool costs. Withdrawals generally aren’t allowed before the year your child turns 18.
The 2025 executive order on educational freedom
Executive Order 14191, “Expanding Educational Freedom and Opportunity for Families,” directed federal agencies to issue guidance and make plans. It doesn’t give money directly to parents.
Guidance that followed allows states to set aside up to 3% of federal Title I money for direct student services such as tutoring, advanced courses, and dual enrollment. The Department of Defense also ordered a review of homeschool support for military families.
Starting later
The federal scholarship tax credit (2027)
Starting January 1, 2027, people who donate to approved Scholarship Granting Organizations can get a federal tax credit of up to $1,700 ($3,400 for married couples filing jointly). This is often called the Federal Scholarship Tax Credit or the Education Freedom Tax Credit.
Those organizations then give scholarships to students. A few key points:
- Your state has to opt in. Scholarships are only available in states that join.
- There’s an income limit. Students must be in households at or below 300% of area median income.
- Homeschool eligibility is uncertain. Expenses must be tied to a K-12 “school” as your state defines it, and it depends on whether a scholarship organization serves homeschoolers.
- Scholarship amounts are set by each organization.
As of September 14, 2026, the IRS lists these states as opted in: Alabama, Alaska, Arkansas, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming.
Washington is not on the list. States have until January 1, 2027 to opt in for 2027.
See the IRS page on the Federal Scholarship Tax Credit.
Rumor or overstated
- “The federal government is sending homeschool parents money.” Not true right now. There’s no federal cash grant or federal ESA paid directly to homeschool families.
- “You can use your child’s Trump Account for curriculum.” No. That money is generally locked until your child turns 18.
- “The executive order funds homeschooling.” It directed agencies to write guidance and plans. It didn’t create federal homeschool curriculum funding.
- “529s now cover homeschool, period.” Overstated. It depends on how your state’s law treats homeschools.
- “Every family will get a 2027 scholarship.” No. It depends on your state opting in, your income, and whether a scholarship organization serves homeschoolers.
We’ll update this page as the rules become clearer.
This page is general information, not tax or legal advice. Please check with the IRS, your state, or a qualified tax professional about your family’s situation.
Information current as of October 2026.