Sandy Springs families with Georgia’s Path2College 529 accounts can use their savings for more than school tuition, including certain tutoring, instructional materials and educational therapies.
The plan allows qualified K-12 withdrawals free from federal and Georgia income taxes, with a combined annual limit of $20,000 per student across all 529 accounts, according to its official plan description.
The broader uses follow a federal law signed July 4, 2025. Expanded expense categories became eligible for distributions after that date, while the annual limit increased from $10,000 to $20,000 beginning in 2026, under Section 70413 of the law.
Eligible expenses include curriculum, books, online instructional materials, certain testing fees and dual-enrollment fees. The rules apply to students attending public, private or religious elementary and secondary schools.
Tutoring and therapy expenses have additional requirements. Tutoring must take place outside the home with an instructor unrelated to the student who meets specified qualifications. Educational therapies for students with disabilities must come from a licensed or accredited provider.
Georgia taxpayers contributing to Path2College can also deduct up to $8,000 annually per beneficiary when filing jointly, or $4,000 for other filers, according to the plan’s June 2026 supplement.
Georgia’s treatment differs from policies identified in an Oct. 28 report by the American Legislative Exchange Council. ALEC, which advocates aligning state rules with the federal expansion, identified 16 states whose laws or guidance do not fully recognize the expanded K-12 uses.
Those differences can lead to state taxes or repayment of previously claimed tax benefits. However, owning another state’s 529 plan does not by itself determine a Georgia resident’s tax consequences. Families should check applicable state tax rules and whether they previously claimed deductions or credits elsewhere.
More information about eligible expenses is available on Path2College’s K-12 page.
