The new tax bill was signed into law on December 22nd.  While it has been a subject of national debate, there is a provision that came from it that will help some families pay tuition for private school.

According to The New York Times, starting in 2018, $10,000 from a tax-free 529 account can be used for private school tuition.  This applies to elementary school onward.

A 529 plan lets you put money into a fund where it can grow over time without any capital gains taxes to be paid on the earnings.  35 states offer a tax deduction when you deposit the money into the plan.  The principal and earnings of this fund can only be used for educational purposes.  If you want to know more about how this works for your state, go to Savingforcollege.com.

For families that already have this plan, this expands your options for using it.  I do not claim to be a tax expert.  If you have further questions, talk to a trusted tax professional.

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