Student Empowerment Act
Student Empowerment Act
Plain Language Summary
# Student Empowerment Act Summary **What It Does** The Student Empowerment Act would expand what parents can pay for using 529 education savings plans with tax-free money. Currently, these accounts allow up to $10,000 per year for elementary and secondary school tuition. This bill would add coverage for homeschooling tuition and various educational expenses like curriculum materials, books, online courses, tutoring, testing fees, and dual enrollment programs—all potentially paid with pre-tax dollars. **Who It Affects** The bill primarily affects families with school-age children who have 529 savings plans, particularly those considering or currently using homeschooling or supplemental education services.
It could make these education options more financially accessible by allowing tax benefits to extend beyond just tuition to broader educational costs. **Current Status** HR 939 is currently in committee, meaning it has not yet been debated or voted on by the full House of Representatives. It was introduced by Rep. Kevin Hern (R-OK) in the 119th Congress.
CRS Official Summary
Student Empowerment ActThis bill expands the education-related expenses that may be paid for with tax-free distributions from a qualified tuition program (also known as a 529 plan) to include certain expenses related to elementary, secondary, and homeschool education.Under current law, distributions from a 529 plan are excluded from gross income if they are used to pay for qualified higher education expenses, which includes up to $10,000 (per year and per beneficiary) for tuition at an elementary or secondary public, private, or religious school.The bill expands the education-related expenses that may be paid for with tax-free distributions from a 529 plan to include tuition related to homeschooling and the following expenses related to elementary, secondary, and homeschool education:curriculum and curricular materials,books or other instructional materials,online educational materials,tutoring or educational classes outside the home,testing fees,fees for dual enrollment in an institution of higher education, andeducational therapies for students with disabilities.
Latest Action
Referred to the House Committee on Ways and Means.