According to the National Home Educators Research Institute, over 2.5 million children in grades K-12, making up 3-4% of the population, are being schooled at home. The percentage is anticipated to increase by 10% this year. There are benefits for parents that provide tax free contributions toward the tuition expense of K-12 private schools as well as college expenses.
What is a 529 Plan?
If you are not familiar with a 529 Plan, let’s break down the definition and consider how this would benefit you as a parent, tax payer, and advocate of school choice for your family. In 2017, the Tax Cuts and Job Act was approved allowing families to use funds to cover college tuition and expenses as well as tuition for private schools grades K-12. Each state has specific guidelines on setting up this tax free account with an annual limit of $10,000 per child. Check out your state guidelines and how to use this plan to pay for K-12 private school tuition here. 529 Plan State Guidelines & 529 Private School Tuition
In addition, the 529 Plan also allows for tax free withdrawals that cover expenses related to apprenticeship related training costs including books, fees, supplies and equipment to participate as well as paying off student loans.
Be a school choice advocate.
Empower your financial skills and knowledge by researching what is available to offset the cost of your educational options by researching 529 Plans. Advocating for what will work best for your student and knowing how to stretch your dollars to support that choice is powerful.
