Key Tax Incentives for Homeschooling Families

As homeschooling becomes an increasingly popular education choice across the United States, many families are asking: What financial support is available to ease the cost burden? Thanks to recent legislative changes, and ongoing policy discussions, homeschooling families now have more tools than ever to reduce expenses through tax-advantaged strategies.

Here are the key tax incentives available (and proposed) for homeschooling families as of 2025:

Use of 529 Plans for Homeschool Expenses

Traditionally, 529 education savings plans were designed to support college expenses and only more recently were expanded to include K–12 private schooling. However, homeschooling was excluded from this benefit, as the IRS did not recognize it as a qualifying educational institution.

That changed with the passage of the “One Big Beautiful Bill” (OBBB), signed into law on July 4, 2025. This legislation made a major shift in education policy by officially allowing tax-free withdrawals from 529 plans for qualified homeschooling expenses.

What qualifies?

Under the new law, homeschooling families can now use 529 funds for a range of costs, including:

• Curriculum and instructional materials, like Spark Sciences Kits!
• Online courses and digital tools
• Tutoring services
• Testing fees and assessments
• Even better, starting with the 2026 tax year, the annual withdrawal cap is being raised to $20,000 per beneficiary. This gives homeschooling families significant room to invest in their children’s education without facing tax penalties.

For families already using a 529 plan, or considering starting one, this is one of the most direct and tax-efficient ways to reduce homeschooling costs.

Trump’s Proposed $10,000/Child Write-Off (Not Law Yet)

During his 2024 presidential campaign, Donald Trump proposed a $10,000 per child tax deduction specifically for homeschooling families. This measure was part of his broader “Agenda 47” platform, which emphasized parental choice and educational freedom.

However, it’s important to note:

• This proposal has not been passed into law
• It currently offers no legal tax benefit to families
  

Still, the fact that such a proposal made it into national debate shows the growing recognition of homeschooling as a legitimate, mainstream educational path. Whether or not this particular policy becomes law, the momentum is clearly building toward expanding tax relief for homeschoolers.